HomeMy WebLinkAboutZTA201500002 Executive Summary 2015-08-11COUNTY OF ALBEMARLE
STAFF REPORT
AGENDA TITLE: Work Session to Address ZTA
2015 -2 Farm Distilleries, Farm Breweries & Farm
Wineries
SUBJECT /PROPOSAL /REQUEST: Work Session
to Address ZTA 2015 -2 Farm Distilleries, Farm
Breweries & Farm Wineries
STAFF CONTACT(S):
Amanda Burbage, Amelia McCulley, Wayne
Cilimberg, Francis McCall, Greg Kamptner
AGENDA DATE: August 11, 2015
ACTION: INFORMATION: X
CONSENT AGENDA:
ACTION: INFORMATION:
ATTACHMENTS: Yes
BACKGROUND: On July 1, 2015, General Assembly bill SB 1272 became law limiting localities' ability to regulate
activities associated with limited (farm) distilleries. These changes are similar to the provisions for farm wineries
adopted by the General Assembly in 2007 and the provisions for farm breweries adopted in 2014. Under the State
Code in order to be eligible for a limited distillery license, a distillery may not manufacture more than 36,000 gallons of
distilled spirits per calendar year, must be located on a farm with agricultural zoning, and must use agricultural products
grown on the farm in the manufacture of its alcoholic beverages.
Similar to State Code provisions for farm wineries and farm breweries, distillery activities which cannot be restricted by
local regulation include production and harvesting of agricultural products; manufacturing, sales, tasting, storage, and
on- premises consumption of distilled spirits; and sale of incidental items related to the sale of distilled spirits. The Code
requires that any regulation of activities and events (collectively, "events ") at farm distilleries be reasonable and take
into account the economic impact of the regulation on the farm distillery, the agricultural nature of the event, and
whether or not a particular event is considered usual and customary. Any regulation of usual and customary events is
allowed only where there is a substantial impact on the health, safety, or general welfare of the public.
On May 12 the Planning Commission held a work session on an ordinance amendment that proposed treating farm
distilleries the same as farm wineries and farm breweries. At the work session the Commission shared concerns about
the cumulative impacts of these uses in the Rural Area, including traffic generation on rural roads, parking, water use,
and, in particular, the impact of these uses when located on smaller Rural Area parcels (Attachment A). On June 2 the
Commission adopted a Resolution of Intent (Attachment B) broadening the focus of this ordinance amendment work
to include farm breweries and farm wineries in addition to farm distilleries.
DISCUSSION: In response to concerns shared at the May work session, staff provides the following information for
the Planning Commission in their consideration of the revised ordinance provisions detailed in Attachment C.
Events associated with multiple ABC licenses on one property
At the work session, the Commission expressed concern about the cumulative impacts of multiple events associated
with multiple ABC licenses on an individual parcel. Under the current ordinance, a property that holds a farm winery
license and a farm brewery license may have by right events of up to 200 people associated with each license. Several
other activities, such as picnics and tours, are not subject to the 200 person limitation. Staff recommends that the
revised ordinance include a provision that requires a special use permit for any defined "farm winery event," "farm
brewery event," wedding or wedding reception event or events with a cumulative attendance of over 200 people,
regardless of whether or not that property holds multiple ABC licenses. This change corrects an oversight from the last
ZTA to avoid the unintended consequence of multiple by right events on a single property holding multiple ABC
licenses.
Cumulative substantial impact on multiple properties
At its last work session, the Commission shared concerns about the potential for events and activities at farm wineries,
farm breweries, and farm distilleries located in close proximity to one another to collectively generate a substantial
impact on public health, safety and welfare before a substantial impact threshold is met on any individual property.
While this has not yet been experienced in Albemarle County, the growing popularity of these uses has the potential to
generate such impacts in the future. Under the current ordinance, only two substantial impacts currently apply to farm
wineries and farm breweries, outdoor amplified music, which requires a zoning clearance and events exceeding 200
attendees, which requires a special use permit. The Commission suggested introducing additional substantial impact
thresholds to activities and events at farm wineries, farm breweries, and farm distilleries to provide the opportunity to
address potential issues that may arise before the 200 person threshold is triggered.
Staff recommends that the Commission consider applying the substantial impact thresholds recently established for
agricultural operations to activities and events at farm breweries and farm distilleries. These thresholds include the
generation of more than 50 vehicle trips per day or a parcel size of less than 21 acres, both of which trigger the need
for a zoning clearance. If these thresholds are considered, they will need to be evaluated in the context of the
requirements of the Virginia Code, which require the County to take into account the economic impact of the regulation
on the farm distillery, the agricultural nature of the event, and whether or not a particular event is considered usual and
customary. If the Commission wishes to apply these thresholds to farm wineries, staff recommends grandfathering
existing farm wineries from this requirement.
Relationship of activities and events to an agricultural use of the property
At the work session, the Commission questioned how much agricultural product grown on the farm ABC requires a
farm distillery to use in the manufacture of its distilled spirits. The State Code is not specific about the quantity of
product required to be grown on the farm for farm breweries or farm distilleries, setting them apart from Class A farm
wineries, which must produce their wine using at least 51 % of fruit grown on the farm. Class B farm winery licenses do
not require that any agricultural product be grown on the farm; however, a farm winery must be in operation for at least
seven years in order to obtain a Class B license. Currently, all but one of the farm wineries in Albemarle County are
operating under a Class A license.
The County Attorney's Office has concluded that the County is pre - empted by State law from changing the eligibility
requirements for a farm winery, farm brewery, or farm distillery that satisfies the licensing requirements under the
Alcoholic Beverage Control Act in Title 4.1 of the Virginia Code (See Attachment D, section 2(A)). However, the
amount of agricultural product grown on the farm is a relevant factor the County may consider in developing
regulations pertaining to the activities and events held at farm wineries, farm breweries, and farm distilleries (See
Attachment D, section 3(B)(2)). While this is not the County's current practice for farm wineries and farm breweries, it
may be a mechanism for preventing future abuse of an ABC license for conducting events in the Rural Area when
agriculture is not a true primary use of the property. The recently adopted regulations for agricultural operations
provide guidance for establishing bona fide agricultural use of a property.
At this time, staff does not recommend additional regulation to establish an agricultural use of a property in order to
allow events or activities at a farm distillery, farm brewery or farm winery. The County has not experienced abuse of an
ABC license merely to allow events and activities at a farm winery or farm brewery to date. If the Commission wishes
to pursue additional regulation pertaining to agricultural use at a farm distillery, farm brewery or farm winery, staff
recommends that it be taken on as a Phase 2 zoning text amendment to allow for sufficient stakeholder outreach and
input before such changes are adopted.
RECOMMENDATION: Staff recommends that the Planning Commission provide feedback on staff's recommended
revisions to the ordinance and schedule the zoning text amendment for public hearing.
ATTACHMENTS:
Attachment A: May 12 Planning Commission Action Memo
Attachment B: Resolution of intent to Address Farm Distilleries, Farm Breweries & Farm Wineries
Attachment C: Comparison of Current and Proposed Regulations
Attachment D: Memorandum of Greg Kamptner, Deputy County Attorney