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Home My WebLink About02-05-18 City Commission Packet Materials - A4. Beer and Wine License Radius Policy DiscussionCommission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Andrea Surratt, City Manager SUBJECT: Policy Direction on Alcohol Licenses for Beer with Wine Amendments in the B2M and B3 Zones MEETING DATE: February 5, 2018 AGENDA ITEM TYPE: Action RECOMMENDATION: Provide direction to the City Manager to develop zoning text amendment and amendment to Chapter 4 of the Bozeman Municipal Code to authorize the location within 600 feet of church, synagogue, or other place of worship or as a school of restaurants holding a State issued Beer with Wine Amendment alcohol license in the B3 and the B2M districts. SUGGESTED MOTION: I move to direct the City Manager to initiate a text amendment to the City’s zoning regulations and return to the Commission with an ordinance for provisional adoption exempting certain restaurants holding a State issued Beer with Wine Amendment alcohol license within the B3 and B2M zoning districts only from the State of Montana’s 600- foot prohibition from locating a State issued retail alcohol license within 600 feet of and on the same street as a building used as a church, synagogue, or other place of worship or as a school and regulating such uses through a CUP process as defined by the UDC. BACKGROUND: Recently, local business owners have inquired as to the effect of the City’s exemption from the State of Montana’s restriction regarding licensing of retail alcohol establishments within 600 feet of a school or church1 . The State currently has over 30 different 1 16-3-306. Proximity to churches and schools restricted. (1) Except as provided in subsections (2) through (4), a retail license may not be issued pursuant to this code to any business or enterprise whose premises are within 600 feet of and on the same street as a building used exclusively as a church, synagogue, or other place of worship or as a school other than a commercially operated or postsecondary school. This distance must be measured in a straight line from the center of the nearest entrance of the place of worship or school to the nearest entrance of the licensee's premises. This section is a limitation upon the department's licensing authority. (2) However, the department may renew a license for any establishment located in violation of this section if the licensee does not relocate an entrance any closer than the existing entrances and if the establishment: (a) was located on the site before the place of worship or school opened; or (b) was located in a bona fide hotel, restaurant, or fraternal organization building at the site since January 1, 1937. (3) Subsection (1) does not apply to licenses for the sale of beer, table wine, or both in the original package for off-premises consumption. (4) Subsection (1) does not apply within the applicable jurisdiction of a local government that has supplanted the provisions of subsection (1) as provided in 16-3-309. 357 2 types of alcohol licenses. Sect. 16-3-306(4), MCA, authorizes a local government to supplant the 600-foot rule. The City of Bozeman has done so through adoption of 4.02.020.B, BMC2 but only for restaurant beer and wine license holders. The City has not provided for an exemption from the State’s distance rule for any other license type. City staff have studied the issue, inquired about the alcohol licensing process with the State of Montana, and analyzed through GIS the appropriate locations for an additional exemption to be permitted with conditions. Attached with this staff report is a map showing the location of the alcohol licenses as held by various restaurants and bars in the downtown and midtown. Currently there are 13 restaurants with a beer and wine license that qualify for the exemption. Representatives from the State Department of Revenue, the agency assigned to regulate the sale of alcohol, estimate that in the future there may be only a few additional alcohol licenses issued per year for the Bozeman area. Staff recommends the City Commission amend the municipal code to allow holders of a State issued Beer with Wine Amendment alcohol license to qualify for the Bozeman local 600 foot rule exemption through a Conditional Use Permit process. In doing so, I recommend the Commission require such restaurants, through City zoning requirements, be subject to the same conditions required by the State of Montana for those restaurants with a Restaurant Beer and Wine license. Those conditions include: • On-premise consumption only; • Can serve beer and wine only to patrons who order food; • Must be used in conjunction with a restaurant; • 65% of the restaurant’s annual gross income must be from the sale of food; • A kitchen and necessary employees for preparing food must be on premise; • Serves an evening meal at least 4 days a week for at least 2 hours a day between 5 and 11pm; • Does not have the ability to have gambling or gaming on site; • Beer must come from a wholesaler and wine from an agency liquor store; • Alcohol must be stored on premise; • Must prevent self-service; and • The premises may not operate as a o bottle club. These conditions would be added into the City’s zoning code (UDC) and required in a CUP for an applicant who has received a Beer with Wine Amendment from the State of Montana and is locating within the core urban area of Bozeman, specifically within the B2M and B3 zoning districts.3 The result will be that such applicants would be exempt from the current 600-foot rule. 2 Sec. 4.02.020. - License; exceptions. A. The sale of alcoholic beverages is permitted only in districts authorized in chapter 38 of this Code to allow such sales. B. The limitations set forth in MCA 16-3-306(1) do not apply to restaurants holding a "restaurant beer and wine license" also known as a "cabaret beer and wine license" nor to those owning a "catering endorsement" as those terms are defined in the Montana Alcoholic Beverage Code. However, nothing in this article shall be construed to allow the business license to be unilaterally approved and all must apply for and receive a conditional use permit as set forth in chapter 38 of this Code. 3 My recommendation is to limit the expansion of the City’s exemption from the State’s 600-foot rule only to the B3 and B2M zoning districts and to not provide an expansion of the City’s exemption City-wide. 358 3 These amendments would modify Chapter 4 and Chapter 38 of the Bozeman Municipal Code and would be added as a part of the permitting process through Community Development. UNRESOLVED ISSUES: There is a question as to whether additional stakeholders should be engaged in further discussion on the matter to broaden knowledge and awareness of the issue. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: None. Attachment: Map Memo from Jon Henderson, GIS Manager Chart Comparing Relevant State Alcohol Categories 359 G G G ^ ^ ^ ^ ^ ^ ^ ^^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^^ ^ ^ ^ ^ ^ ^ ^ B-3 B-2M This map was created by the City of Bozeman GIS Department on 1/11/18 and is intended for planning puposes only. 600 300 0 600 Feet ¯ State Liquor Licenses (12/28/17) ^ All-Beverages ^ Beer & Wine ^ Beer with Wine Amendment G Public School Public School (600' Buffer) # Church Church (600' Buffer) B-3 & B-2M 360 TO: Andrea Surratt, City Manager Craig Woolard, Director of Public Works FROM: Jon Henderson, GIS Manager SUBJECT: Alcohol License Proximity Analysis Findings DATE: January 2nd, 2018 The following results provide spatial analysis of existing alcohol licenses with proximity to churches and schools throughout the City of Bozeman. This information is intended to support discussions regarding the State of Montana’s 600 foot restriction for certain types of retail alcohol licenses as it relates to Bozeman’s municipal code exemption. Data sources include the Montana Department of Revenue Liquor Control Division (144 alcohol licenses), Bozeman School District #7 (11 public schools), State of Montana Office of Public Instruction (10 private schools), and the Yellow Pages (46 churches). All addresses were validated and placed near the main entrance of the building. Distance buffers are approximate and may require further verification as needed. Data can be viewed within an online mapping application using the following web address: https://goo.gl/42zqtL A total of 144 alcohol licenses within 7 categories exist inside the Bozeman city limits as of December 28th, 2017. All-Beverages 45 31% Beer/Wine 36 25% Restaurant Beer/Wine 25 18% On-Premise Beer/Wine 23 16% Beer 9 6% Wine 5 3% Distilled Spirit 1 1% 3 “Restaurant Beer/Wine” licenses occur within the 600 foot buffer of a school or church which are exempt according to Bozeman’s municipal code: • Fresco Café (317 E. Mendenhall St.) is approximately 265’ from Hawthorne Elementary School (405 E. Mendenhall St.) • Backcountry Burger Bar (125 W. Main St.) is approximately 375’ from Holy Rosary Catholic Church (220 W. Main St.) 361 • Over the Tapas (19 S. Willson Ave.) is approximately 475’ from United Methodist Church (121 S. Willson Ave.) 6 locations are in conflict with State statute:  White Dog Brewing Company (121 W. Main St.) is approximately 410’ from Holy Rosary Catholic Church (220 W. Main St.)  Bozeman Spirits Distillery (121 W Main St.) is approximately 410’ from Holy Rosary Catholic Church (220 W. Main St.)  Robin Bar (105 W. Main St.) is approximately 575’ from Holy Rosary Catholic Church (220 W. Main St.)  The Wine Gallery (2320 W. Main St.) is approximately 150’ from Outpost Church (2320 W. Main St.)  Lucky Lil’s Casino of Bozeman (2401 W. Main St.) is approximately 470’ from Outpost Church (2320 W. Main St.)  Bozeman Elks Lodge (205 Haggerty Ln.) is approximately 50’ from River Church (205 Haggerty Ln.) Many alcohol licenses of various types are allowed within 600 feet of a school or church because their physical address does not share the same street name (as defined by State statute): o Bozeman Taproom (101 N. Rouse Ave.) is approximately 175’ from Hawthorne Elementary School (405 E. Mendenhall St.) o Loaf’N Jug #728 (717 W. College St.) is approximately 175’ from the Center for Campus Ministry (714 S. 8th Ave.) o The Wok (319 N 7th Ave.) is approximately 375’ from the Church of God Total Life Center (808 W. Villard St.) – also an exempt “Restaurant Beer/Wine” license o Columbo’s Pizza & Pasta (1003 W. College St.) is approximately 175’ from Community of Christ (711 S. 10th Ave.) o Thriftway Super Stop #10 (919 W. College St.) is approximately 175’ from Community of Christ (711 S. 10th Ave.) o Emerson Grill (207 W. Olive St.) is approximately 100’ from First Baptist Church (120 S. Grand Ave.) – also an exempt “Restaurant Beer/Wine” license o Emerson Grill (207 W. Olive St.) is approximately 225’ from Grand Avenue Christian Church (110 S. Grand Ave.) – also an exempt “Restaurant Beer/Wine” license o Bar 3 Bar B-Q of Bozeman (215 N. 7th Ave.) is approximately 400’ from River Valley Christian Fellowship (522 W. Beall St.) – also an exempt “Restaurant Beer/Wine” license o Roost Fried Chicken (1520 W. Main St.) is approximately 420’ from Seventh-Day Adventist Church (24 N. 15th Ave.) – also an exempt “Restaurant Beer/Wine” license o Saffron Table (1511 W. Babcock St.) is approximately 500’ from Seventh-Day Adventist Church (24 N. 15th Ave.) – also an exempt “Restaurant Beer/Wine” license 362 363