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CR 2013-063 Approve Ordinance Amending to Section 1200 of the Hopkins City Code: Sale, Consumption and Display of Alcohol Beveragesr� ....- `� r July 23, 2013 Council Report 2013-063 Approve Ordinance Amending to Section 1200 of the Hopkins City Code: Sale, Consumption and Display of Alcohol Beverages Proposed Action Staff recommends adoption of the following motion: Move to adopt for first reading Ordinance 2013- 1063 amending section 1200 of the Hopkins City Code adding an On -Sale Brewer Taproom License and Off -Sale Brewer Malt Liquor License. Adoption of this motion will begin the process of amending Section 1200 of the Hopkins City Code to allow for an On -Sale Brewer Taproom License and Off -Sale Brewer Malt Liquor License. Overview Staff has received inquiries regarding the possibility for a brew pub type license in the City of Hopkins. Currently the City Code allows for eight types of liquor licenses including: on -sale, temporary on -sale, off -sale, club, on -sale wine, 3.2 % malt liquor on -sale, 3.2 % malt liquor off -sale, and Temporary 3.2% malt liquor on sale. In order to allow additional licenses, the liquor ordinance and fee schedule would need to be amended. The City Council discussed the addition of an on -sale brewer taproom and off -sale malt liquor license at the May 14 and July 16, 2013 work sessions. Council directed staff to prepare the amendments to the liquor license ordinance to include these licenses. Also at the last work session, Council directed staff to notify the bar owners in Hopkins of the impending ordinance. Staff has sent a letter to the liquor licensees on July 18`" and included a copy of the draft ordinance for their review and asked for any comments in regards to this change. The Hopkins Planning Commission will be reviewing the City Zoning Code at the end of July in regards to the zoning for an on -sale brewer taproom license in the B2 and B3 district. Primary Issues to Consider Should the Hopkins City Code Chapter 12 be amended to add an On -Sale Brewer Taproom license and Off -Sale Brewer Malt Liquor license? Supporting Documents Excerpt from the Unapproved Minutes of July 16, 2013 Work Session Proposed Ordinance 2013-1063 Proposed Resolution to Set Fees Kris Luedke, City Clerk Financial Impact: $ Budgeted: YIN Source: Related Documents (CIP, ERP, etc.): CR 2013-063 Page 2 Background MN Statute 340A.301 allows for Municipalities to issue, with approval of the State Alcohol and Gambling Enforcement Division, a liquor license for On -Sale Brewer Taprooms and Off -Sale Brewer Malt Liquor licenses to establishments within its jurisdiction. The draft ordinance is in the process of final review by the City Attorney. A summary of the purposed amendments to Chapter 12 are as follows: It will include a definition for a Brewer to read as: A person who manufactures malt liquor for sale. Also, included are the following new types of liquor licenses for the City: On -Sale Brewer Taproom License: 1. A taproom license will be issued only to brewers that produce fewer than 3,500 barrels of malt liquor per year. State Statute only allows growler sales at breweries that produce up to 3,500 barrels annually. 2. The only alcoholic beverages sold or consumed on the premise of a taproom is the malt liquor produced by the brewer on the licensed premises. This is a requirement of State Law. 3. Hours of operation for on -sale of malt liquor at a brewer taproom shall be pursuant of section 1200.46 of the Hopkins City Code. Off -Sale Brewer Malt License: 1. A brewer off -sale license will be issued to a brewer that produces fewer than 3,500 barrels of malt liquor per year. This is a requirement of State Law. 2. The only malt liquor sold off -sale must be produced and packaged on the license premises. This is a requirement of State Law. 3. Hours of operation for sale of malt liquor shall be limited to the off -sale hours of section 1200.46 subd. 5 of the Hopkins City Code. 4. The malt liquor sold off -sale must be removed from the licensed premises before the applicable off - sale closing time pursuant to section 1200.46 subd 5 of the Hopkins City Code. 5. The malt liquor shall be packaged in 64 -ounce containers commonly known as "growlers" or in 750 milliliter bottles and shall meet requirements for packaging set in the Minnesota Rules, part 7515.110. In recommending the annual licensing fees, staff reviewed other area cities and their fee schedules. The following cities have an on -sale taproom and/or an off -sale brewer liquor license: St. Louis Park, Brooklyn Center, Stillwater, New Ulm and Bloomington. The annual fees for the taproom licenses ranged from $400 to $600. The annual off -sale brewer license fees were consistent with the cities being set at $200. Staff is proposing the following annual fees: • On -Sale Brewer Taproom `Brewpub" License - $ 500.00 (If the Taproom licensee wishes to be open on Sunday, they would be required to have an on - sale Sunday license which is an additional $ 200.00 annually). • Off -Sale Brewer Malt Liquor - $ 200.00 At the July 16th work session, Mr. Hale of LTD Brewery met with the Council and staff to discuss the option of starting a brewer taproom in the City of Hopkins. At this meeting, he presented his company's business plan and gave an overview of the brewing background that he and his business partner Mr. Verdon have. The Council has asked that Mr. Hale present the LTD Brewing business plan at the July 23 City Council Meeting. CR 2013-063 Page 3 Alternatives 1. Approve Ordinance 2013-1063 for first reading. 2. Continue the item for additional information. 3. Do neither with no action on this item. Staff recommends alternative one. Excerpt for the Unapproved Minutes of July 16. 2013 New business: Brew -Pub Discussion Ms. Luedke presented background information regarding the "brew pub" type liquor license and gave an overview of the draft ordinance. Since the last meeting, staff has met with the Co -Founders of LTD (Live the Dream) Brewing Company, Mr. Jeremy Hale and Mr. Blake Verdon who are interested in opening a brewer taproom in Hopkins. LTD would like to be open later hours on Friday and Saturdays. Staff is recommending that the hours of operation be the same as other on -sale liquor license establishments. The Hopkins Zoning and Planning Commission will be reviewing the City Zoning Code in regards to the zoning for an on -sale brewer taproom license in the B2 and B3 district. Ms. Luedke reviewed the annual fees. Mr. Hale representing LTD Brewing Co. presented his business plan to the Council. Mr. Hale gave an overview of their brewing background, possible locations, entertainment ideas, lounge area, brewery tours, family friendly location and types of alcoholic and non-alcoholic beverages. Mr. Hale gave an overview of their business strategy including size, sales focus and business development plan and timeline. Mr. Hale reviewed the dream of LTD to make downtown Hopkins a destination, involvement in the community, provide employment opportunities for special need individuals, utilize local ingredients and host homebrew contests. Mr. Hale gave an overview the types of brews, brewing equipment and targeted location to be within '/z mile of SWLRT. Mr. Hale asked the Council to consider waiving the food requirement for the brewpub stating that the 10% food requirement would be associated with mediocre food and take away from the overall brewpub experience. LTD would like to promote area restaurants by allowing brewpub patrons to bring in food from local restaurants. There was much Council discussion regarding the types of food sales allowed and the Hennepin County Health Department ordinances. Staff will investigate the Health Department regulations. Mr. Genellie addressed the Council regarding the idea of waiving the food requirement. Staff initially was not in favor of the taproom only option but has considered the option LTD is proposing of partnering with area restaurants and allowing patrons to bring in food as a way to grow its business while building partnerships with existing businesses. There was Council discussion regarding state requirements of alcohol content, extending hours of operation on Friday and Saturday to 12 am, difference between a brew pub, tap room & bar, location options, storage, types of home-made soda and what accounts for food sales. Mr. Genellie discussed with Council the specialty aspect of the LTD business model. The Brewpub can only sell what they produce; it does not offer full bar options. The idea of partnering with area restaurants will allow the brewpub to offer patrons an option to bring in better quality food. Ms. Luedke gave an overview of the next steps and timeline for the ordinance. The City Attorney is currently reviewing the draft ordinance. Council directed staff to notify bar owners and get their comments regarding proposed ordinance. Council asked that LTD co-founders reach out to the local bar & restaurant owners regarding their business plan. Council also suggested that the LTD co-founders discuss their plans with the Fire and Inspection Departments prior to entering into a lease agreement and start to develop a relationship with the Hopkins Police Department. The first reading of the ordinance with no food percentage requirement will be on City Council agenda on Tuesday, July 23. Council asked Mr. Hale to present the LTD brewing business plan at the July 23 City Council meeting. CITY OF HOPKINS COUNTY OF HENNEPIN ORDINANCE NO. 2013-1063 ORDINANCE AMENDING SECTION 1200 SALE, CONSUMPTION AND DISPLAY OF ALCOHOLIC BEVERAGES OF THE HOPKINS CITY CODE TO ADD ON -SALE BREWER TAPROOM AND OFF -SALE BREWER MALT LIQUOR LICENSES THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: Section 1. That Section 1200.03 Subdivision 1 is amended by adding the following: 1200.03 Licenses Required. Subdivision 1. General requirement. No person, except a wholesaler or manufacturer to the extent authorized under state license, shall directly or indirectly deal in, sell, or keep for sale in the City of Hopkins, any intoxicating liquor without a license to do so as provided in this ordinance. Liquor licenses shall be of eight ten kinds: • on -sale • temporary on -sale • off -sale • club • on -sale wine • 3.2 % malt liquor on -sale • 3.2 % malt liquor off -sale • temporary 3.2% malt liquor on -sale • on -sale brewer taproom • off -sale brewer malt liquor Section 2. Hopkins City Code, Section 1200.22 is added to read as follows: Brewer. A person who manufactures malt liquor for sale. Section 3. Hopkins City Code, Section 1200.23 is added to read as follows: On -Sales Brewer Taproom License. Subdivision 1. A brewer who has a license from the Commissioner of Public Safety to brew up to 3,500 barrels of malt liquor pereasy be issued a license by the City for on -sale of malt liquor subject to the following conditions: Subd. 2. The malt liquor sold on sale for consumption must be produced by the brewer on the licensed premises. Subd. 3. No other beverages containing alcohol may be sold or consumed on the licensed premises. Subd. 4. Hours of operation for on -sale of malt liquor at a brewer taproom should be pursuant to section 1200.46. Section 4. Hopkins City Code, Section 1200.24 is amended to read as follows: Off -Sale Brewer Malt License. Subdivision 1. A brewer who has a license from the Commissioner of Public Safety to brew fewer than 3,500 barrels of malt liquor per year may the approval of the Commissioner of Public Safety be issued a license by the City for off -sale of malt liquor subject to the following conditions: Subd. 2. The malt liquor sold off -sale must be produced and packaged on the licensed premises. Subd. 3. Off -sale of malt liquor shall be limited to the legal hours for off -sale pursuant to section 1200.46 Subd. 5. Subd. 4. The malt liquor sold off -sale must be removed from the licensed premises before the applicable off -sale closing time pursuant to section 1200.46 Subd 5. Subd. 5. The malt liquor sold off -sale shall be packaged in 64 -ounce containers commonly known as "growlers" or in 750 milliliter bottles and shall have the following requirements for packaging: 1. The containers or bottles shall bear a twist type closure, cork, stopper or plug. 2. At the time of sale a paper or plastic adhesive band, strip or sleeve shall be applied to the container or bottle and extend over the top of the twist type closure, cork, stopper or plug forming a seal that must be broken upon opening of the container or bottle. 3. The adhesive band, strip or sleeve shall bear the name and address of the brewer/licensee selling the malt liquor. 4. The container or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brewer/licensee selling the malt liquor, and the contents in the container packaged as required herein shall be considered intoxicating liquor unless the alcohol content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100. Renumber section accordingly. Section 5. The effective date of this ordinance shall be the date of publication. First Reading: July 23, 2013 Second Reading: August 5, 2013 Date of Publication: August 15, 2013 Date Ordinance Takes Effect: August 15, 2013 ATTEST: Kristine A. Luedke, City Clerk APPROVED AS TO FORM AND LEGALITY: City Attorney Signature Date an Eugene Maxwell, Mayor CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2013-039 RESOLUTION AMENDING FEES IN CHAPTER 10 OF THE HOPKINS CITY CODE BY ADOPTING ANNUAL FEES FOR LIQUOR LICENSE rt BE IT RESOLVED by the City Council of the City of Hopkins as follows: WHERESA, Hopkins City Code allows fees to be set by resolution and; WHERESA, the City has adopted an ordinance authorizing On -Sale Brewer Taproom "Brewpub" and a Off -Sale Brewer Malt Liquor License; and WHERESA, City staff have reviewed the fees of other local cities and has recommended changes to the inclusion of the following fees and; NOW, THEREFORE BE IT RESOLVED, to adopt amendments in Chapter 10 of the Hopkins City Code as follows: Section 1010 - License fees 1010.03. Intoxicating Alcohol Proposed Annual fee 1 On -Sale Brewer Ta room "Brewpub" 500.00 2 Off -Sale Brewer Malt Liquor 200.00 Adopted by the City Council of the City of Hopkins, Minnesota, this 23 d day of July, 2013. Eugene J. Maxwell, Mayor ATTEST: Kristine A. Luedke, City Clerk