TOWN OF JUPITER TOWN MANAGER S OFFICE

TOWN OF JUPITER TOWN MANAGER S OFFICE DATE: December 4, 2014 TO: THRU: FROM: SUBJECT: Honorable Mayor and Members of Town Council Andrew D. Lukasik, Town Manager John Sickler, Planning and Zoning Director MICROBREWERY Zoning text amendment to establish supplemental regulations for microbreweries and to allow them as a special exception in the General Commercial (C-2) zoning district; the Central Boulevard, Center Street/Maplewood Drive, Alternate A1A, U.S. 1, and Parkways districts of the Indiantown Road Overlay Zoning District, with an underlying zoning of General Commercial (C-2); the Community Commercial (CC) and Town Center (TC) subdistricts of the Mixed Use zoning district; and, the Waterway Commercial and Entertainment subdistrict of the U.S. One/Intracoastal Waterway Corridor zoning district. (PZ# 14-257) Ordinance # 39-14 PZ 14-257 GW Meeting dates: PZ PZ TC TC 11/13/14 (continued) 12/09/14 01/20/15 1 st Reading 02/17/15 2 nd Reading Applicant: Applicant s Request: Staff Recommendation: Karl Volstad, Civil Society Brewing Company 1. Section 27-1, entitled Definitions to add a definition for microbreweries; 2. Section 27-552, entitled Use Regulations to add Microbrewery as a special exception in the General Commercial (C-2) zoning district; 3. Section 27-990.13, entitled Mixed use development subdistrict use classification to add Microbrewery as a special exception in the Town Center (TC) subdistricts; 4. Section 27-647, entitled Use Regulations to add Microbrewery as a special exception in the Park Light Industrial (I-1) zoning district; and, 5. Section 27-677, entitled Use Regulations to add Microbrewery as a special exception in the General Industrial (I-2) zoning district. Amendment to Chapter 27 as follows: 1. Section 27-1, entitled Definitions to add a definition for microbreweries; 2. Section 27-552, entitled Use Regulations to add Microbrewery as a special exception in the General Commercial (C-2) zoning district; 3. Section 27-886, entitled Use Regulations to add 3-1

Microbrewery ZTA Page 2 of 9 Microbrewery as a special exception in the Central Boulevard, Center Street/Maplewood Drive, Alternate A1A, U.S. 1, and Parkways districts of the IOZ with an underlying zoning district of General Commercial (C-2); 4. Section 27-990.13, entitled Mixed use development subdistrict use classification to add Microbrewery as a special exception in the Community Commercial (CC) and Town Center (TC) subdistricts; 5. Section 27-860.1, entitled Use regulations of the U.S. One/Intracoastal Waterway Corridor zoning district, to add microbrewery as a special exception use in the Waterway Commercial and Entertainment subdistrict; and, 6. Chapter 27, Article X, entitled Supplementary District Regulations to add Division 42, entitled Microbrewery to provide regulations for microbreweries. Planning and Zoning Commission Recommendation At their November 13, 2014 meeting, the Planning and Zoning Commission voted unanimously (7 to 0 vote) to continue the zoning text amendment to the December 9, 2014 meeting. The continuation by the Commission was based on the following concerns with the proposed text amendment: The definition should be modified to use malt beverage instead of specialized beers, remove the specific terminology of a tap-room, and remove the clause regarding the sale of wine. Further the use should be limited in size. Staff Comment: The definition has been modified as recommended above, and a limitation of 15,000 barrels per year has been added to the supplementary regulations. (see Definition and Supplemental regulations section below) The distribution seems more industrial. There should be criteria that would limit the distribution of the microbrewery. Staff Comment: Staff has limited the amount of beer a microbrewery can produce and added specific times in which distribution trucks can deliver or pick-up beer from the brewery. (see Supplemental regulations section below) There should be parking requirements for the use in the code. Staff Comment: Staff has not added parking requirements for the use into the code, because the two distinct uses (bar and industrial) that make up a microbrewery are already present in the Town code. Staff handles parking demands for mixtures of uses routinely with site plan applications and prior to the issuance of a Business Tax Receipt for any new or proposed change in use. (see Parking Demand section below) Can a microbrewery have outdoor storage of materials? For how long? Staff Comment: The proposed supplementary regulations address the outdoor storage of spent grains, which may be approved for a period of less than 24 hours. The regulations also establish the screening requirements of the temporary outdoor storage area. (see Supplemental regulations section below) What is the split in square footage between the two types of uses (bar and manufacturing)? 3-2

Microbrewery ZTA Page 3 of 9 Staff Comment: The supplementary regulations require a minimum of 25% of the microbrewery to be a commercial restaurant or bar to ensure the use remains commercial. (see Supplemental regulations section below) The staff report has been updated to address the above concerns and specifics can be found in the Analysis section below. Staff Recommendation. Based upon the facts and findings contained herein, staff recommends that the Planning and Zoning Commission recommend the Town Council Adopt the proposed text amendments, as shown in Exhibit 1. Background. The applicant is proposing a zoning text amendment to add microbrewery to the Town code and propose districts in which it would be permitted (see Attachment A). Currently, there are no microbreweries in the Town. The applicant has proposed the regulations in order to open a microbrewery in the Town. On June 30, 2014, the Town issued a zoning determination letter for the Barcelona commercial property (see Attachment B) that outlined the proposed use. Based on the letter, in order to operate a microbrewery, including a distribution component, a zoning text amendment would be required. As a result the applicant submitted the proposed text amendment and plans to submit a special exception for a microbrewery in the old Pineapples tenant space in Town Center on December 8, 2014. A microbrewery is typically a small-scale brewery, brewing small batch craft beers. Microbreweries typically contain a commercial tap room that functions similar to a bar, where patrons can come and drink beers brewed at the microbrewery. These facilities differ from large scale breweries such as Miller, Busch, and Coors, which brew large amounts of beer for distribution. Microbreweries have been sought after in recent years by local municipalities trying to revitalize underutilized areas. Successful microbreweries attract other unique complementary users (i.e. local specialty restaurants) to the surrounding areas and add to the local flavor. The Florida Statue creates a relatively strict three-tier system for alcoholic beverages. The system has three legs, brewer, distributor, and retailer. With the three-tier system in place, a brewer makes the beer, a distributor would buy the beer from the brewer, and then the distributor would resell the beer to a retailer (store, restaurant, or bar). The system was designed to avoid a single brewer from becoming a monopoly. Florida Statute 563.022 prohibits brewers from having any financial interest in a retail operation, which would by-pass the distribution leg of the system. There are two exceptions outlined in Florida Statue 561.221 (see Attachment C), which allow a brewery to sell directly to a consumer. The first is the Busch Gardens Exception the second is the Brewpub Exception. The Busch Gardens Exception allows a brewery to sell directly to a consumer through tap-rooms with an approved Consumption-on-Premise, 2COP or 4COP alcohol license. The exception was made for breweries that encourage tourism, which is typically done by giving tours of the brewery during daytime hours. Under this exception, there is no limit on the amount of beer that can be brewed, and the beer can be sold to distributors for off-site sales. An example of a local microbrewery utilizing this exception would be Tequesta Brewing Company. The Brewpub Exception is for small bars and/or restaurants that want to brew their own beer. This exception limits the amount of beer that can be brewed to 10,000 kegs per 3-3

Microbrewery ZTA Page 4 of 9 year, and prohibits selling the beer to a distributor for off-site retail sales. An example of a local brewpub would be Brewzzi Restaurant and Microbrewery. Below is a list of local microbrewery square footages and the size of their brewing equipment. It is important to note that there are many variables that affect the amount of beer a brewery can produce. Brewing schedule, number of fermentation tanks, type of beer brewed, and ingredient availability all have an effect on the amount of beer a brewery can produce. Brewery name / location Square footage (SF) Size of brewing system (barrel = BBL) Due South Brewery / Boynton Beach, FL 15,000 SF 15 BBL Tequesta Brewing Company / Tequesta, FL 3,800 SF 15 BBL Funky Buddha / Oakland Park, FL 40,000 SF 20 BBL Saltwater Brewery / Delray Beach, FL 7,880 SF 20 BBL Analysis. A microbrewery is a unique use which is a combination of two primary uses: manufacturing and bar. The combination of these uses is unique because they are typically allowed in different districts, one being more industrial and the other more commercial. The applicant is proposing to add microbreweries as an allowable use within the Town utilizing the Busch Gardens Exception. Based on this exception, a microbrewery is able to sell beer brewed on site through an on-site tap room and beer via retail carry-outs, commonly referred to as Growlers, with a 2COP or 4COP license issued by the Florida Department of Alcoholic Beverages and Tobacco (ABT). In addition, the microbrewery would be able to sell the beer to a distributor for off-site sales and consumption. Definition of Microbrewery (see Exhibit 1 for specific recommendations) Applicant s requested definition The applicant is proposing a definition that is very similar to the Village of Tequesta s definition for microbreweries. The applicant s requested definition is as follows: Microbrewery means an establishment that produces specialized beers for sale on premises in a tap room, or for sale in packages for later consumption off premises via retail carry-outs and/or through distribution. A microbrewery may also in conjunction with the sale of beer on the premises, sell wine by the glass for consumption on premises. Staff s recommended definition Staff conducted research of other local municipalities which have microbreweries (see Attachment D) to ensure the definition is similar to what is allowed elsewhere. At the Planning and Zoning Commission meeting, the commission recommended changes to the previous definition. The changes have been incorporated into the definition below. Microbrewery shall mean an establishment that produces malt beverages for sale on premises and in packages for later consumption off premises via retail carry-outs, or through distribution. 3-4

Microbrewery ZTA Page 5 of 9 Staff comment: The proposed definition for microbreweries applies to smaller more commercial breweries (less than 15,000 barrels per year). Traditional breweries and Brewpubs have not been addressed within the proposed definition. Traditional breweries Staff did not find it necessary to define traditional breweries in the Town code. A traditional brewery would brew beer, but would not have a bar on site and would only sell their beer to distributors for off-site consumption. Furthermore, a traditional brewery would not be limited in the amount of beer it could produce annually. Traditional industrial style breweries, without a bar or restaurant component, are already allowed in the Park Light Industrial (I-1) and General Industrial (I-2) zoning districts. A traditional brewery is most similar to a manufacturing use or dairy processing or bottling plant, which are allowed in both zoning districts. The North American Industry Classification System (NAICS) defines beverage manufacturing (alcoholic or non-alcoholic) as a manufacturing use. Brewpubs Staff also did not find it necessary to add a definition of a brewpub in the Town code. Brewpubs are typically associated with restaurants and bars which are already regulated in the Town Code, and the amount of beer produced is limited by Florida Statute and regulated by ABT. Further, a brewpub cannot sell their beer to a distributor for off-site sales so there would be minimal impacts associated with the addition of brewing beer. If a brewpub wanted to open in the Town, it could do so under the regulations set forth for restaurants or bars, whichever is most similar to the proposed operation. Zoning Districts (see Exhibit 1 for specific recommendations) Applicant s requested zoning districts - The applicant is proposing to add microbrewery as an allowable use in the General Commercial (C-2), Town Center (TC) subdistrict, Park Light Industrial (I-1) and General Industrial (I-2) zoning districts. Staff is supportive of the applicant s request to add microbreweries as a special exception in the General Commercial (C-2) and Town Center (TC) subdistrict, but does not support the use in the Park Light Industrial (I-1), and General Industrial (I-2) districts. Below is a chart showing the applicant s proposed zoning districts: Applicant s Proposal General Commercial (C-2) Town Center (TC) subdistrict of the Mixed Use (MXD) zoning district Industrial, Park Light Industrial (I-1) Does staff support? Yes No Reason for support or no support Microbreweries have taprooms similar to lounges/bars, which are allowed in both districts Microbreweries are smaller operations which are similar to other uses in the districts (i.e. bakery and restaurant) Industrial aspects of microbreweries are not very prominent, they have a lower impact similar to a restaurant preparing its own food Trucks used in distribution pick-up are identical in size to the trucks used for restaurants and bars Taprooms/bars not appropriate in industrial district Creates late night activities in the industrial area where police presences is less prominent Industrial users in the past have not wanted 3-5

Microbrewery ZTA Page 6 of 9 General Industrial (I-2) non-industrial businesses bringing pedestrians into heavy industrial areas where conflicts and accidents could occur There is a lack of pedestrian friendly infrastructure (i.e. sidewalks, pedestrian lighting, crosswalks) in the industrial districts Staff s recommended zoning districts In addition to the General Commercial (C-2) and Town Center (TC) subdistrict, staff is recommending that the additional zoning districts have microbreweries added as a special exception. The chart below summarizes staff s recommendation. Staff s additional district recommendations Indiantown Road Overlay zoning district (IOZ) subdistricts (with underlying General Commercial (C-2) zoning) Central Boulevard Center Street/Maplewood Drive Alternate A1A U.S. 1 Parkways Community Commercial (CC) subdistrict of the Mixed Use (MXD) zoning district U.S. One/Intracoastal Waterway Corridor zoning district Waterway Commercial and Entertainment subdistrict (both adjacent and not adjacent to the Riverwalk Component) Reason for additional districts Taverns/lounges permitted uses in the districts Properties in the Town s main commercial corridor Properties adjacent to the Town s entertainment district, where these types of uses are encouraged Similar to the Town Center district in terms of the main commercial activity allowed Taverns/lounges permitted uses in the districts Properties are within the Town s entertainment district, where these types of uses are encouraged Businesses are encouraged to be unique Supplemental Regulations (see Exhibit 1 for specific recommendations) There were concerns by the Planning and Zoning Commission that microbreweries are a unique use that may require additional regulations. Staff originally did not propose any supplemental regulations because the use is proposed as a special exception and the unique characteristics could be addressed as part of the application review process. Specifically, the special exception criteria (see Attachment E) must be met to ensure the use is compatible with surrounding uses. If it is determined that a special exception does not meet the criteria, the Town Council has the authority to deny the request or impose conditions. Staff researched other municipalities in order to determine what impacts may need to be regulated with microbreweries. Specifically, St. Petersburg has written regulations which address many of the potential nuisances with microbreweries. The proposed regulations address concerns regarding amount of beer brewed annually and the breakdown of uses (brewery and bar functions) within a microbrewery. In addition, the regulations address the orientation of the bar towards the street or active area, minimizing the visual industrial aspects of the brewing functions, regulating the use of large bay doors, regulating the hours distribution trucks can deliver or pick-up beer, and regulating the use and location of outdoor storage of materials or by-products have been addressed within the supplemental regulations. 3-6

Microbrewery ZTA Page 7 of 9 Limitations Since the Planning and Zoning Commission meeting, staff has added a limit to the amount of beer a microbrewery can produce annually. A limitation of 15,000 barrels of beer per year was chosen because it is the market segment in which a microbrewery operates according to the Brewer s Association. In addition, the proposed limit of 15,000 barrels per year is similar to St. Petersburg s limitation on microbreweries, which are both permitted uses and special exceptions in their commercial districts. A limitation on the amount of beer produced annually is the most accurate way to limit the intensity of a microbrewery, because the amount of beer produced relates directly to the amount that can be consumed on site, or sold to distributors for off-site sales. Staff researched local municipalities that had imposed limits on microbreweries and found that typically an annual report is produced to ensure the brewery is under the annual maximum. The proposed supplemental regulations require that each microbrewery submit an annual report, including documentation of tax information, in order to confirm the number of barrels produced in the previous calendar year. The Alcohol and Tobacco Tax and Trade Bureau (TTB) are the federal taxing authority for alcoholic beverages. The TTB requires quarterly reports for taxation purposes, and the last quarterly report each year is due in mid-january. The tax documentation would be due to the Town on February 15 th of each calendar year, which will allow the microbrewery one month from when their tax documentation is due to the taxing authority (TTB) to submit the information.. It is important to note that if a microbrewery exceeds the brewing threshold of 15,000 barrels per year, it could relocate to the industrial districts as a traditional brewery, but would not be allowed to sell beer on-site. Breakdown of uses The proposed regulations are intended to ensure that the use contains a commercial component of more than 25 percent of the overall square footage in association with the brewery. The regulations restrict the brewery operations, equipment, and storage of materials to no more than 75 percent of the overall square footage. This regulation ensures that traditional breweries without a commercial component will not be able to locate in the commercial districts. Hours for Distribution Trucks At the Planning and Zoning Commission meeting, there were concerns that distribution aspect of a microbrewery was industrial. In addition to the limitation of 15,000 barrels per year, staff has limited the hours that distribution trucks can access the microbrewery to deliver or pick up beer. The regulation limits the hours for distribution trucks from between 8 a.m. and 8 p.m. Monday through Saturday, and 11 a.m. to 7 p.m. on Sundays. The limitation will ensure that the trucks do not operate after hours which could be a nuisance to nearby businesses or residents. Outdoor storage of spent grains At the Planning and Zoning Commission meeting, there were concerns with the outdoor storage of materials. The proposed supplementary regulations prohibit the use of outdoor storage except for the temporary storage of spent grains. The regulations outline strict requirements for the placement of any temporary outdoor storage for spent grains and limit the amount of time they can be store outdoor to less than 24 hours. Staff s Analysis of the Microbrewery use and the unique impacts. Microbreweries are a unique use with varying specific characteristics. A microbrewery has the potential to impact neighboring properties differently from other allowable uses depending on the many attributes including, size, combination of uses, on-site sales vs. off-site sales. Staff has evaluated the use based on intensity and potential nuisances as follows: Parking Demand Microbreweries can be broken down into two separate uses, a manufacturing use and a bar use. The Town code has existing parking requirements for 3-7

Microbrewery ZTA Page 8 of 9 industrial uses (1 parking space per 500 square feet) and lounges or bars (1 parking space per 85 square feet/or 1 space per 2 seats, whichever is greater). Rather than creating new parking ratio requirements for a microbrewery, the existing parking regulations will be used for microbreweries because they correlate with the two uses of a microbrewery, industrial and bar. The required parking would be calculated based on the square footage breakdown of each use, then added together to get the total parking requirements for a microbrewery. Staff routinely employs this strategy for all buildings and shopping centers with a mixture of uses, prior to any site plan or business tax receipt approval. Traffic Generation Microbreweries proposed in the town would be required to submit a traffic impact statement for the proposed use. Currently, the Institute of Transportation Engineers (ITE) does not have a category specifically for microbreweries. Each microbrewery would need to be evaluated on a case by case basis, depending on the breakdown of uses proposed. Water Usage Water is a key ingredient in the production of beer. It is required during many stages of the brewing process, not only as an ingredient, but to help heat and cool the brewing equipment. A microbrewery could be a good user to take advantage of the Town s available water capacity. Product distribution In conjunction with the manufacturing and bar portion of the business, microbreweries also sell their beer to distributors. Distributors will then sell the beer to retail stores, restaurants, and other bars for consumption. There are four beer distributors in the local area; Brown distributing, Micro Man distributing, Cavalier distributing, and Gold Coast distributing. All four distributors use trucks which are identical to the trucks used for beer delivery to local bars and restaurants. If feasible, distributors will drop off beer at a local bar or restaurant and pick-up beer from a local microbrewery in the same trip. Distributors servicing smaller scale microbreweries typically pick up beer one time per week, but pick up may vary based on the amount of beer the brewery is producing. In order to limit the impacts of distribution trucks, the supplementary regulations limit the hours in which a distributor can visit the brewery from 8:00 a.m. to 8:00 p.m. Monday through Saturday and 11:00 a.m. to 7:00 p.m. on Sundays. The regulation will ensure that trucks will come during normal business hours and prohibit late night pick-ups and deliveries. By-products The main by-product of beer production is spent grains. Spent grains can be used by farmers as feed for livestock, fertilizer for plants, whole grains in bread, and even in the production of biofuel. Spent grain is typically stored in empty trash barrels for less than 24 hours before being picked up for reuse. Microbreweries will typically have agreements with local farmers to pick up spent grains as soon as they are available to ensure they are still fresh. In order to ensure that spent grains are not located in an area where they could become a nuisance, and to limit the amount of time they remain outdoors, the supplementary regulations state outdoor storage may be approved. Special exceptions would be reviewed on a case by case basis to determine if appropriate to allow. Further, the proposed regulations limit the amount of time spent grains can remain in a designated outdoor storage area to less than 24 hours and require a designated area on the site plan, if approved. Smell Odors related to microbreweries are typically associated with waste water. Larger breweries (brewing more than 50,000 barrels per year) typically store waste water outside in large pools for cleansing before it is discharged into the sewer system, which can cause the surrounding area to smell. Smaller scale breweries, that don t have the capacity to brew large amounts of beer, typically recycle as much waste water as possible. The waste water can be used to help heat and cool the equipment to help produce more beer. In addition to the odor of waste water, the process of mashing and boiling during the brewing process can produce odors similar to a bakery or restaurant. 3-8

Microbrewery ZTA Page 9 of 9 Staff Comment: As a result of the above characteristics, staff is recommending that a microbrewery use be considered a special exception in every district in which it is proposed to be located. As a special exception use, each individual microbrewery will be evaluated based on size, location, and function to determine what impacts may be associated with the use, and any necessary conditions of approval could be recommended to minimize those impacts. Staff is supportive of the applicant s request to add microbrewery as a use in the Town Code. Microbreweries are a unique business and have been shown to attract other complimentary uses nearby. Conclusion. Based on the above reasons, staff recommends approval of the zoning text amendment proposed in Exhibit 1. Attachment: Exhibit 1 Proposed Text Amendment Attachment A Statement of Use Attachment B Zoning Determination Letter June 30, 2014 Attachment C F.S. 561.221 Attachment D Other Municipalities definitions Attachment E Special Exception Criteria \\Datant\cdev\Staff\WP51\Amendtowncode\Microbrewery\PZ 14-257_PZC2\PZ 14-257_Staff Report_PZC2.doc 3-9

Exhibit 1 Staff s Recommended Zoning Code Amendments (Additions noted with underlining) Amend Section 27-1, entitled Definitions. The applicant is proposing the following definition to define the microbrewery use. Microbrewery shall mean an establishment that produces malts beverages for sale on premises and in packages for later consumption off premises via retail carry-outs, or through distribution. Amend Section 27-552, entitled Use Regulations. The proposed zoning text amendment is to amend the General Commercial (C-2) zoning district to add microbrewery as a special exception, as follows: Sec. 27-552. Use regulations. (b) Special exceptions. The following uses may be permitted after review by the Planning and Zoning Commission and provided the Town Council determines that the application meets the criteria contained in section 27-98, all other applicable provisions of law, and does not otherwise adversely affect the public. (30) High-tech, laboratory and/or office research (in multi-story buildings) (31) Microbrewery Amend Section 27-886, entitled Use Regulations. The proposed zoning text amendment is to amend the Indiantown Road Overlay zoning district to add microbrewery as a special exception in the following districts: IOZ district: Underlying district: Status Central Boulevard "C-2" (commercial, general) (45) P... Wholesale outlets and distributors (46) SE... Microbrewery Use IOZ district: Underlying district: Status Center Street/Maplewood Drive "C-2" (commercial, general) (45) SE... Wholesale outlets and distributors (46) SE... Microbrewery Use IOZ district: Underlying district: Status Alternate A1A "C-2" (commercial, general) (44) SE... Wholesale outlets and distributors (45) SE... Microbrewery Use 3-10

Exhibit 1 IOZ district: Underlying district: Status U.S. 1 "C-2" (commercial, general) (45) X... Wholesale outlets and distributors (46) SE... Microbrewery Use IOZ district: Underlying district: Status Parkways "C-2" (commercial, general) (46) SE... Wholesale outlets and distributors (47) SE... Microbrewery Use Amend Section 27-990.13, entitled Mixed use development subdistrict use classification. The proposed zoning text amendment is to amend the Mixed Use zoning district to add microbrewery as a special exception in the following districts: Sec. 27-990.13. Mixed use development subdistrict use classification. Mixed Use District Sub-Districts NB NC RU CC TC WPL WP REC IN EA Microbrewery SE SE Amend Section 27-860.1, entitled Use regulations. The proposed zoning text amendment is to amend the U.S. One/Intracoastal Waterway Corridor zoning district, to add microbrewery as a special exception as follows: Waterway Commercial and Entertainment Subdistrict (properties developing directly adjacent to the Riverwalk Component) Uses Microbrewery Status SE Waterway Commercial and Entertainment Subdistrict (properties developing directly adjacent to U.S. Highway One and not adjacent to the Riverwalk) Uses Microbrewery Status SE 3-11

Exhibit 1 Amend Chapter 27 article X, entitled Supplementary district regulations to add division 42 to the Town code addressing microbreweries and establishing regulations. DIVISION 42. - Microbrewery. Sec. 27-1675.35. - Purpose and intent. The purpose and intent of these regulations is to provide regulations for microbreweries proposed within the Town and to ensure that the intensity and nuisances associated with the use are addressed. Sec. 27-1675.36. - Regulations. In addition to the development standards of the zoning district, an establishment that meets the definition of a microbrewery shall comply with the following: 1) The microbrewery shall produce no more than 15,000 barrels (465,000 US gallons/17,602.16 hectoliters) of beer per year, as provided by in an annual report including the tax documentation from the previous calendar year. The tax documentation shall be submitted to the town prior to February 15th of each calendar year and shall encompass the tax documentation from the previous calendar year; 2) This use shall be permitted only in conjunction with a commercial retail, restaurant, tavern, or lounge and shall adhere to the following: a. No more than 75 percent of the total gross floor space of the establishment shall be used for the brewery function including, but not limited to, the brewhouse, boiling and water treatment areas, bottling and kegging lines, malt milling and storage, fermentation tanks, conditioning tanks, serving tanks, and/or the storage of materials; b. The commercial use shall be oriented towards the street or public space, excluding alleys; 3) All brewery equipment visible from the street (excluding alleys), adjacent residential uses, or residential zoning districts shall be screened using architectural features consistent with the principal structure or shall be displayed in a manner that showcases the brewery equipment and function; 4) Access and loading bays shall not face toward any street (excluding alleys) and shall remain closed at all times, except during the movement of materials, supplies, and finished products into and out of the building; 5) Service trucks for the purpose of loading and unloading malt beverages, materials, supplies, and equipment shall be limited to between the hours of 8:00 a.m. and 8:00 p.m. Monday through Saturday and between 11:00 a.m. and 7:00 p.m. on Sundays; 6) No outdoor storage shall be allowed in conjunction with a microbrewery, including the use of portable storage units, cargo containers and tractor trailers. Spent or used grain, may be approved to be stored outdoors for a period of time not to exceed 24 hours. The temporary storage area of spent or used grain shall be: a. Designated on the approved site plan; b. Prohibited within any required area (parking, greenspace, landscape buffer, etc.) or any yard abutting a residential use or residential zoning district (excluding the mixeduse zoning districts); c. Fully enclosed within a sealed container, secured and screened behind a solid, opaque fence or wall measuring a minimum five feet in height. 3-12

Within the Definitions section of the zoning code, Sec 27-1, Definitions, there is currently no definition for Microbrewery as it relates to a use by right and/or special exception in a zoning district. It is similar to the use of Tavern/Lounge as defined in Sec 27-1 however the definition of Tavern/Lounge does not include all of the necessary aspects of the proposed definition of Microbrewery. We propose the following definition for Microbrewery be added to The Town of Jupiter code of ordinance in Sec 27-1 Definitions; Microbrewery means an establishment that produces specialized beers for sale on premises in a tap room, or for sale in packages for later consumption off premises via retail carry- outs and/or through distribution. A microbrewery may also in conjunction with the sale of beer on the premises, sell wine by the glass for consumption on the premises We propose the following districts for the Microbrewery use; C- 2, Town Center, I- 1 and I- 2 The attached exerts are taken from other municipalities whom have address the use of a Microbrewery. Included are code sections from the Village of Tequesta, the City of Palm Beach Gardens and the City of Boynton Beach. The Village of Tequesta approved a Microbrewery as a special exception in the C- 2 Community Commercial District. In Tequesta s code of ordinance Section 78-4 Definitions; Microbrewery means a small, independently owned brewery that produces limited quantities of specialized beers for consumption on the premises, or for sale in packages for later consumption off the premises. A microbrewery may also, in conjunction with the sale of beer for consumption on the premises, sell wine by the glass or carafe for consumption on the premises. The City of Palm Beach Gardens approved a Microbrewery as a conditional use in CG- 1 General Commercial District, CG- 2 Intensive Commercial District, M- 1 Research and Light Industrial Park District and M- 1A Light Industrial District. In Palm Beach Gardens code of ordinances Sec 78-751 Definitions; Microbrewery/craft brewery/brewpub means an establishment that produces fewer than 50,000 barrels of beer per year with 75% or more of its beer sold off site. Microbreweries sell to the public by one or more of the following methods: brewer to distributor to retailer to consumer, or directly to the consumer through carry- outs and/or on- site tap- room and/or restaurant sales. A microbrewery may also, in conjunction with the sale of beer, prepare and serve food. Distance requirements set forth in chapter 6 of the city's code of ordinances shall apply. 3-13

The City of Boynton Beach approved Beverage Manufacturing (Beverage MFG) as a conditional use in the C- 4 district. In Boynton Beach s code of ordinance Article II; Beverage MFG An establishment primarily engaged in the manufacturing, purifying, bottling and distribution of beverage products, including ice and alcoholic beverages. This Industrial us may include a subordinate commercial component (i.e., tasting room, retail and facility tours) that is open to the public. 3-14

June 30, 2014 Tarang Shah Civil Society Brewing Company 141 Raintree Trail Jupiter, FL 33458 Re: Civil Society Brewing Co. - Zoning determination letter to operate a brewery located at 1030 Military Trail. (PZ 14-178) Dear Mr. Shah, This is in response to your letter submitted on June 5, 2014, regarding operating a brewery, including consumption of pints on premises, package sales of growlers, and distribution at the Barcelona commercial property (see Attachment A). Please note that operating any establishment engaged in the production, consumption, and/or distribution of alcohol would be required to be in conformance with Florida State Statutes. The subject property has a future land use designation of Commercial and has a zoning designation of C-2 (Commercial General). In your letter, you ask for clarification on the following items: Civil Society Brewing Co is looking for a property in the Jupiter area that will allow us to operate our Brewery by selling: 1. Individual pints on premise through our taproom Pursuant to Section 27-1, the definition of tavern/lounge is a building or portion of a building wherein alcoholic beverages are sold by the drink and consumed on the premises. Within the C-2 zoning district, a tavern/lounge is a permitted use. The sale of alcohol for consumption on premise meets the Town s definition of a tavern/lounge. Therefore, a tavern/lounge would be a permitted use, subject to site plan approval to add this use to the approved PUD. An appropriate alcohol license would be required to be submitted to the Town for review and approval. 2. Growlers for our customers on the go In conjunction with the proposed tavern/lounge, you are requesting a retail use allowing the sale of alcohol in sealed containers. Within the C-2 zoning district, retail is a permitted use. Consumption of Premise (COP) alcohol licenses allow for consumption on premise or in sealed containers for take away. Depending on the specific details of your proposal, this may be considered an accessory for retail sales of alcohol in sealed containers for take 3-15

away. The retail component would not allow for distribution to other retailers or wholesalers/distributors. 3. Distribute our beers to distributors In your letter, you refer to this portion of the use as being a special exception; however, the current C-2 zoning district does not allow distribution as a special exception use. Therefore the use is currently not allowed, and a change to the zoning code would be required. Specifically, a zoning text amendment would need to be submitted to request brewery as a permitted use. However, the brewery use may have unique characteristics and impacts, and would likely be classified as a special exception use. The zoning text amendment along with any required subsequent applications must be approved prior to performing the distribution portion of the proposed use. 4. When could the text amendment and subsequent applications be processed? A zoning text amendment applies to the Town as a whole, and does not specifically apply to any one parcel. Therefore, a zoning text amendment can be processed at any time. In addition, any subsequent applications (i.e. special exceptions, site plan amendments, etc.) can be processed concurrent with or following the text amendment and/or site plan processes referenced below. The subject property is currently vacant and undeveloped. In order to develop the property, a site plan would need to be submitted to the Town of Jupiter for review and approval. The site plan would need to meet the Town code and the conditions of approval in Ordinance No. 30-12 and Resolution 52-12 (see Attachment B). Additionally, the site plan would need to identify a brewery as a proposed use. As stated above, if a brewery use is approved and added as a permitted use through the zoning text amendment process, it may require a special exception application. It should be noted that submittal of any property specific application (i.e. special exceptions, site plan amendments, etc.) would require authorization from the current property owner. If you have any questions, please feel free to contact me by phone at (561) 741-2549 or by email at garretw@jupiter.fl.us. Sincerely, Garret Watson, Planner Department of Planning and Zoning To rate our service; please visit the following link to fill out a customer service survey. http://www.jupiter.fl.us/formcenter/planning-and-zoning-12/customer-service-survey-92 Cc: Scott Thatcher, Principal Planner Leila Schultz, Building Support Specialist II Peter Begovich, Building Support Specialist II Attachments Attachment A Request Letter Attachment B Ord 30-12 and Res 52-12 3-16

Attachment C The 2014 Florida Statutes Title XXXIV ALCOHOLIC BEVERAGES AND TOBACCO Chapter 561 BEVERAGE LAW: ADMINISTRATION View Entire Chapter 561.221 Licensing of manufacturers and distributors as vendors and of vendors as manufacturers; conditions and limitations. (1)(a) Nothing contained in s. 561.22, s. 561.42, or any other provision of the Beverage Law prohibits the ownership, management, operation, or control of not more than three vendor s licenses for the sale of alcoholic beverages by a manufacturer of wine who is licensed and engaged in the manufacture of wine in this state, even if such manufacturer is also licensed as a distributor; provided that no such vendor s license shall be owned, managed, operated, or controlled by any licensed manufacturer of wine unless the licensed premises of the vendor are situated on property contiguous to the manufacturing premises of the licensed manufacturer of wine. (b) The Division of Alcoholic Beverages and Tobacco shall issue permits to a certified Florida Farm Winery to conduct tasting and sales of wine produced by certified Florida Farm Wineries at Florida fairs, trade shows, expositions, and festivals. The certified Florida Farm Winery shall pay all entry fees and shall have a winery representative present during the event. The permit is limited to the length of the event. (2) The division is authorized to issue vendor s licenses to a manufacturer of malt beverages, even if such manufacturer is also licensed as a distributor, for the sale of alcoholic beverages on property consisting of a single complex, which property shall include a brewery and such other structures which promote the brewery and the tourist industry of the state. However, such property may be divided by no more than one public street or highway. (3)(a) Notwithstanding other provisions of the Beverage Law, any vendor licensed in this state may be licensed as a manufacturer of malt beverages upon a finding by the division that: 1. The vendor will be engaged in brewing malt beverages at a single location and in an amount which will not exceed 10,000 kegs per year. For purposes of this subsection, the term keg means 15.5 gallons. 2. The malt beverages so brewed will be sold to consumers for consumption on the vendor s licensed premises or on contiguous licensed premises owned by the vendor. (b) Any vendor which is also licensed as a manufacturer of malt beverages pursuant to this subsection shall be responsible for applicable reports pursuant to ss. 561.50 and 561.55 with respect to the amount of beverage manufactured each month and shall pay applicable excise taxes thereon to the division by the 10th day of each month for the previous month. (c) It shall be unlawful for any licensed distributor of malt beverages or any officer, agent, or 3-17

Attachment C other representative thereof to discourage or prohibit any vendor licensed as a manufacturer under this subsection from offering malt beverages brewed for consumption on the licensed premises of the vendor. (d) It shall be unlawful for any manufacturer of malt beverages or any officer, agent, or other representative thereof to take any action to discourage or prohibit any distributor of the manufacturer s product from distributing such product to a licensed vendor which is also licensed as a manufacturer of malt beverages pursuant to this subsection. History. s. 1, ch. 63-11; s. 1, ch. 67-511; s. 1, ch. 72-230; s. 1, ch. 78-187; s. 1, ch. 79-54; s. 1, ch. 84-142; s. 1, ch. 87-63; s. 8, ch. 92-151; s. 1, ch. 94-296. 3-18

Attachment D Village of Tequesta Sec. 78-4. Definitions Microbrewery means a small, independently owned brewery that produces limited quantities of specialized beers for consumption on the premises, or for sale in packages for later consumption off the premises. A microbrewery may also, in conjunction with the sale of beer for consumption on the premises, sell wine by the glass or carafe for consumption on the premises. Palm Beach Gardens Sec. 78-751. Definitions Microbrewery/craft brewery/brewpub means an establishment that produces fewer than 50,000 barrels of beer per year with 75% or more of its beer sold off site. Microbreweries sell to the public by one or more of the following methods: brewer to distributor to retailer to consumer, or directly to the consumer through carry-outs and/or on-site tap-room and/or restaurant sales. A microbrewery may also, in conjunction with the sale of beer, prepare and serve food. Distance requirements set forth in chapter 6 of the city's code of ordinances shall apply. Boynton Beach BEVERAGE MFG - An establishment primarily engaged in the manufacturing, purifying, bottling, and distribution of beverage products, including ice and alcoholic beverages. This industrial use may include a subordinate commercial component (i.e., tasting room, retail and facility tours) that is open to the public. 3-19

Attachment E Sec. 27-98. - Criteria for special exceptions. (a) A special exception use shall not be approved unless all of the following criteria are met: (1) The proposed special exception use shall be compatible with the character and use (existing and future) of the surrounding property in its function; hours of operation; type and amount of traffic to be generated; building location, mass, height and setback; and other relevant factors peculiar to the proposed special exception use and the surrounding property. (2) The proposed special exception use shall not have a detrimental impact on surrounding properties based on: a. The number of persons anticipated to be using, residing, or working on the property as a result of the special exception use; b. The degree of noise, odor or other potential nuisance factors generated by the special exception use; and c. The effect on the amount and flow of traffic within the vicinity of the proposed special exception use. In reviewing an application for a particular special exception use approval, the Town may require the applicant to demonstrate: (1) the need for the particular special exception use in the specific location identified on the application and (2) that the establishment of the particular special exception use in the identified location does not create a concentration of that particular special exception use that may be detrimental to the immediate area. (b) Should the Town Council determine that the proposed special exception use is not consistent with the criteria outlined in subsection (a) above, the Council may either deny the application or require such conditions of approval as may be necessary to produce a development which is consistent with these criteria. The conditions of approval may require the applicant and/or property owner to exceed the minimum development standards set forth in this chapter and/or other applicable local regulations. Conditions of approval may include, but are not limited to, the following: (1) Limit the manner in which the use is conducted, including restricting the time an activity may take place and/or restraints to minimize such effects as noise, vibration, air pollution, glare and/or odor. (2) Establish a special setback, open space requirement, and/or lot area or dimension. (3) Limit the height, size, square footage of uses and/or location of a building or other structure. (4) Designate the size, number, location and/or nature of access points (vehicle and pedestrian). (5) Designate the size, location, screening, drainage, type of surfacing material and/or other improvement of a parking and/or loading area. (6) Limit or otherwise designate the number, size, location, height and/or lighting of signs. (7) Require the use of, and designate the size, height, location and/or materials for, berming, screening, landscaping and/or other facilities to protect and/or buffer adjacent or nearby property, including designating standards for installation and/or maintenance of the facilities. (8) Require the protection and/or relocation of additional trees, vegetation, water resources, wildlife habitat and/or other appropriate natural resources. (9) Specify other conditions of approval to permit development of the project in conformity with the intent and purpose of this chapter and the adopted comprehensive plan. (c) Violation of any conditions, when made a part of the terms under which the special exception use is approved, shall be deemed a violation of this chapter subject to enforcement under the provisions of this Code. (Ord. No. 37-99, 4, 10-19-99; Ord. No. 49-10, 1, 12-21-10) 3-20 Page 1

Attachment E Sec. 27-99. - Criteria for future land use and zoning map amendments. In addition to the applicable requirements of the Florida Statutes, the following criteria shall apply to all applications which propose to change the Town's future land use or zoning map: (1) The proposed map amendment shall be consistent with the goals, objectives and policies of the Town of Jupiter Comprehensive Plan. (2) The proposed map amendment shall be consistent with the established land uses of surrounding properties or land use patterns. (3) The proposed map amendment shall not create an isolated land use designation or zoning district unrelated to adjacent and nearby designations or districts. (4) The application is necessary because of changed or changing conditions, including, but not limited to changing demographic trends, annexation, or public service needs. (Ord. No. 37-99, 5, 10-19-99) 3-21 Page 2