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HomeMy WebLinkAbout051116 PC Agenda - Special Meeting In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting[28 CFR 35.102.35.104 ADA Title II]. AGENDA TEMECULA PLANNING COMMISSION SPECIAL MEETING CITY COUNCIL CHAMBERS 41000 MAIN STREET TEMECULA, CALIFORNIA MAY 11, 2016—6:00 PM Next in Order: Resolution: 16-14 CALL TO ORDER: Flag Salute: Commissioner Watts Roll Call: Guerriero, Telesio, Turley-Trejo, Watts and Youmans PUBLIC COMMENTS A total of 15 minutes is provided for members of the public to address the Commission on items that are not listed on the Agenda. Speakers are limited to three minutes each. If you desire to speak to the Commission about an item not on the Agenda, a salmon colored "Request to Speak" form should be filled out and filed with the Commission Secretary. When you are called to speak, please come forward and state your name for the record. For all other agenda items a "Request to Speak" form must be filed with the Commission Secretary prior to the Commission addressing that item. There is a three-minute time limit for individual speakers. NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the Planning Commission request specific items be removed from the Consent Calendar for separate action. PUBLIC HEARING ITEMS Any person may submit written comments to the Planning Commission before a public hearing or may appear and be heard in support of or in opposition to the approval of the project(s) at the time of hearing. If you challenge any of the projects in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondences delivered to the Commission Secretary at, or prior to, the public hearing. Any person dissatisfied with any decision of the Planning Commission may file an appeal 1 of the Commission's decision. Said appeal must be filed within 15 calendar days after service of written notice of the decision, must be filed on the appropriate Community Development Department application and must be accompanied by the appropriate filing fee. 1 Development Code Performance Standards for businesses manufacturing alcoholic beverages with retail sales and a tasting room, Dale West RECOMMENDATION: 1.1 Adopt a resolution entitled: PC RESOLUTION NO. 16- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE ENTITLED "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING PORTIONS OF TITLE 17 (ZONING) OF THE TEMECULA MUNICIPAL CODE ESTABLISHING DEFINITIONS AND PERFORMANCE STANDARDS FOR USES INVOLVING THE MANUFACTURING OF ALCOHOLIC BEVERAGES WITH RETAIL SALES AND TASTING ROOMS, SUCH AS BREWERIES, DISTILLERIES, AND WINERIES AND FINDING THAT THIS ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINES, SECTION 15061(B)(3)" REPORTS FROM COMMISSIONERS REPORTS FROM COMMISSION SUBCOMMITTEE(S) DIRECTOR OF COMMUNITY DEVELOPMENT REPORT DIRECTOR OF PUBLIC WORKS REPORT ADJOURNMENT Next regular meeting: Planning Commission, Wednesday, May 18, 2016, 6:00 PM City Council Chambers, 41000 Main Street, Temecula, California. NOTICE TO THE PUBLIC The agenda packet (including staff reports) will be available for public viewing in the Main Reception area at the Temecula Civic Center(41000 Main Street,Temecula)after 4:00 PM the Friday before the Planning Commission meeting. At that time,the agenda packet may also be accessed on the City's website — www.cityoftemecula.org — and will be available for public viewing at the respective meeting. Supplemental material received after the posting of the Agenda Any supplemental material distributed to a majority of the Commission regarding any item on the agenda, after the posting of the agenda,will be available for public viewing in the Main Reception area at the Temecula Civic Center(41000 Main Street,Temecula, 8:00 AM — 5:00 PM). In addition, such material may be accessed on the City's website —www.cityoftemecula.org — and will be available for public viewing at the respective meeting. If you have questions regarding any item on the agenda for this meeting, please contact the Community Development Department at the Temecula Civic Center, (951)694-6400. 2 ITEM 1 STAFF REPORT— PLANNING CITY OF TEMECULA PLANNING COMMISSION DATE OF MEETING: May 11, 2016 TO: Planning Commission Chairperson and members of the Planning Commission FROM: Luke Watson, Director of Community Development PREPARED BY: Dale West, Case Planner PROJECT Development Code Performance Standards for businesses SUMMARY: manufacturing alcoholic beverages with retail sales and a tasting room RECOMMENDATION: That the Planning Commission adopt Resolution No. 16- recommending that the City Council adopt an ordinance amending portions of Title 17 (Zoning) of the Temecula Municipal Code establishing definitions and performance standards for uses involving the manufacturing of alcoholic beverages with retail sales and tasting rooms, such as breweries, distilleries, and wineries and finding that the Ordinance is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines, Section 15061(B)(3). BACKGROUND SUMMARY Within the last decade, the craft beer industry has seen a dramatic increase in growth nationwide. Since 2010, nine businesses that manufacture craft alcoholic beverages have opened within the City of Temecula. This should not be too surprising to some, given that the Temecula valley is widely known for its wineries and burgeoning "foodie" industry. Nonetheless, current zoning standards are not set up to address this industry type. Alcoholic beverage manufacturing businesses have been classified as a manufacturing use, and only allowed within the zoning districts that allow for manufacturing. However, the retail sales and tasting rooms that accompany these businesses are regulated through a Conditional Use Permit (CUP) in an ad-hoc fashion. On the other hand, if the alcoholic beverage manufacturing business includes a restaurant, it may be located within any of the commercial zoning districts within the City without requiring a CUP. The proposed Municipal Code Amendment would establish consistent rules for all alcohol manufacturing business within the City of Temecula. In recent months, staff has received preliminary requests from five of the local microbreweries to allow for extended hours of operation of the tasting room, live entertainment, an increase above the 15% maximum floor area for ancillary retail sales, and for outdoor patio seating; however, based on the current Municipal Code standards, staff is unable to process these requests because there are no development or performance standards for these types of uses. In response, staff sought input from the Planning Commission on March 16, 2016. This led staff to pursue a moratorium on the establishment of any new or modification to an existing Conditional Use Permit for the manufacturing of alcoholic beverages with retail sales or a tasting room, until CAProgram Files(x86)\neevia.com\docConverterPro\temp\NVDC\6D6DAB73-D363-4087-8C64-4394C570DD8B\12691.docx1 standards could be established. Interim Ordinance No. 16-04, establishing the moratorium adopted by the City Council, took effect immediately upon adoption on April 12, 2016 and is set to expire on May 27, 2016. ANALYSIS Since 2010, nine businesses that manufacture alcoholic beverages have opened within the City of Temecula. Of the nine businesses, two manufacture beer and include a bona fide eating establishment (restaurant) in conjunction with the business. Per the City's Municipal Code, a restaurant may serve beer and wine by right and is not required to obtain a Conditional Use Permit (CUP) to serve alcoholic beverages. The on-site alcoholic beverage manufacturing is considered an ancillary use to the restaurant. Additionally, restaurants serving beer and wine may be located within any commercial zoning district within the City and are therefore not affected by this proposed Code amendment. The remaining seven businesses manufacture beer or distilled spirits, offer tastings, and offer retail sales/tasting room, but do not have a restaurant in conjunction with the business. As such, these businesses are required to obtain a CUP for the on-site consumption of alcoholic beverages. This is consistent with the current standards within the Temecula Municipal Code, which require that businesses serving alcoholic beverages, other than grocery stores, drug stores, specialty markets, discount/department stores, and restaurants serving beer and wine, obtain a CUP. Businesses that manufacture alcoholic beverages and do not have a restaurant in conjunction with the business are considered a manufacturing use and may be located in the Service Commercial (SC), Business Park (BP), and Light Industrial (LI) Zoning Districts. And, per the Municipal Code, manufacturing uses may have up to 15% of the total floor area set aside for retail sales of products manufactured on site. The retail area is also referred to as the "tasting room" where alcoholic beverages are served to patrons. Following the March 16, 2016 Planning Commission meeting and April 12, 2016 City Council meeting, staff continued their research related to alcohol beverage manufacturing uses including how best to define these types of uses, identifying possible security concerns created by these uses, determining whether to recommend limiting the quantity of alcohol that may be served in tasting room, identifying the availability of public transportation that support these uses, studying the parking requirements for these uses, considering the compatibility of these uses with other land uses, and determining appropriate zones where the manufacturing of alcohol with a tasting room may be established. Staff worked with the Temecula Police Department, reviewed regulations of the cities of Anaheim, Corona, Murrieta, Riverside, and San Marcos, reviewed rules and regulation of the California Department of Alcoholic Beverage Control (ABC), reviewed the American Planning Association Planning Advisory - Zoning for Micro-Alcohol Production, and researched the Brewers Association to identify potential best practices. The cities researched include the City of Anaheim, City of Corona, City of Murrieta, City of Riverside, and City of San Marcos. The American Planning Association Planning Advisory included reviews of cities from across the United States. The following summarizes staff's findings: Definitions: Cities that have added specific definitions for small-scale alcoholic beverage manufacturing generally take one of two approaches. They either define brewpubs, microbreweries, microdistilleries, and microwineries as distinct uses, or they define an umbrella term that encompasses multiple types of alcoholic beverage manufacturing facilities. Cities that define distinct uses often rely on a production volume threshold to distinguish between the CAProgram Files(x86)\neevia.com\docConverterPro\temp\NVDC\6D6DAB73-D363-4087-8C64-4394C570DD8B\12691.docx2 "micro" and "conventional" version of a particular use. For microbreweries, 15,000 barrels per year is a common threshold, which corresponds to the American Brewers Association's defined limit for a microbrewery. Newly adopted ABC rules for microdistilleries limit the production to 100,000 gallons per year. There are no ABC rules for microwineries and no production limits for wineries. Cities that define an umbrella term for multiple "micro" facilities tend to focus on operational features over production volume limits. In some instances, this means a square footage limit on facility size or the proportion of a facility that can be used for alcohol production. In other instances, there are no defined size limits, and the use definition simply describes a set of operational characteristics (e.g., alcohol production and sales for on- and off-site consumption). Use Permissions: Typically, cities permit microbreweries, microdistilleries, and microwineries in manufacturing zones by right. In other limited commercial and mixed-use zoning districts, a discretionary permit is typically required. Hours of Operation: Hours of the tasting room vary substantially, but typically range from noon until 9:00 P.M. or 10:00 P.M., with one city allowing alcoholic beverages to be served until 1:00 A.M. The tasting rooms in the existing breweries within the City of Temecula are allowed to serve alcohol until 8:00 P.M. or 9:00 P.M. Transportation Services: Some of the cities researched require, through their municipal code, that these types of businesses post or make available transportation opportunities for patrons. For other cities researched, this requirement may be made as a condition of approval, through a discretionary permit; however, staff was unable to verify this information. For the City of Temecula, if an alcoholic beverage establishment requires a CUP, then it is conditioned to post local transportation service providers and their corresponding telephone numbers. Police Activity: Staff researched police activity at eight establishments within the City of Temecula for the period of January 1, 2014 - March 29, 2016. There was one incident involving tampering of a vehicle at one of the breweries, and five incidents involving petty theft, vandalism and battery at two of the breweries that include restaurants. Parking: Parking requirements vary greatly among cities. Some cities require parking solely based on a manufacturing use, while other cities require parking based on a combination of retail, restaurant, office and manufacturing. Live Entertainment: In all but one of the cities researched, live entertainment is allowed with a conditional use permit. Only one city required a conditional use permit if the live entertainment was conducted on a "regular' basis. Tastings: Only one of the cities researched regulates the size or amount of tastings within their Municipal Code. Their regulations are consistent with the ABC regulations for tasting limits. The ABC allows alcoholic beverage manufacturers to offer free samples of their products; microbreweries are allowed to provide up to eight ounces of beer per person per day, wineries may serve up to three ounces per person per day, and microdistilleries may serve up to 1.5 ounces per person per day. Retail sales are allowed by all alcoholic beverage manufactures per ABC regulations and may have certain restrictions based on the ABC license type issued. PROPOSED AMENDMENTS CAProgram Files(x86)\neevia.com\docConverterPro\temp\NVDC\6D6DAB73-D363-4087-8C64-4394C570DD8B\12691.docx3 Land Use Categories: Two new land use categories and definitions are proposed; "Alcoholic Beverage Manufacturing" and "Alcoholic Beverage Manufacturing with Live Entertainment." Both use categories would include manufacturing facilities for the production of beer, wine, and distilled spirits, in accordance with a valid alcohol production license issued by the State of California. These uses would also allow a "tasting room" which is defined as an accessory use in a brewery, winery, or distillery that only serves beverages produced at that location. Tasting room visitors would be allowed to consume alcoholic beverages on the premises and purchase containers of alcohol for off-site consumption. Additionally, the land use category for "Restaurant with lounge or live entertainment" is proposed to be allowed in the LI zoning district with a CUP. Currently restaurants without live entertainment are permitted by right in the LI zoning district, but restaurants with live entertainment are not permitted in the LI zoning district. Allowing restaurants with live entertainment with a CUP establishes consistency within the Municipal Code for these land use categories. Alcoholic Beverage Manufacturing: This land use category would be allowed in the BP and LI zoning districts by right. However, the conditions of approval that are typically added through the CUP process would become standard Code requirements. In the SC zone, a CUP would still be required. Requiring a CUP in the SC zone will ensure the size and scale of operations will be compatible with surrounding land uses and character of the neighborhood. Alcoholic Beverage Manufacturing with Live Entertainment: This land use category would be allowed in the LI, BP and SC zoning districts as a conditionally permitted use. Requiring a CUP for this use category would ensure that appropriate conditions are placed on the use for the live entertainment portion of the business. The proposed Code required operational standards include, but are not limited to, the following: • Dispensing of alcohol may occur between the hours of 10:00 A.M. and 10:00 P.M. • On-site alcohol sales shall be limited to product manufactured on-site. • Employees selling or serving alcohol shall go through Licensee Education on Alcohol and Drugs (L.E.A.D) training from the California Department of Alcoholic Beverage Control or similar training if available from the Temecula Police Department. • Signs listing local transportation service providers and corresponding telephone numbers shall be posted on site. • The retail area (tasting room) shall not exceed 15% of the total floor area of the business. • In addition to the retail area (tasting room), an outdoor patio area may be allowed, but may not exceed 50% of the total allowable retail area. • Businesses will need to meet the parking requirements for the manufacturing, warehousing, office and retail (including any outdoor patio) uses, as set forth in Chapter 17.24 of the Temecula Municipal Code. • Live entertainment, DJ's, or amplified sound may be allowed indoors only with a conditional use permit or temporary use permit. • A security plan shall be approved by the Temecula Police Department. The security plan shall be formulated to deter loitering, unlawful conduct of employees and patrons, and disturbances to surrounding uses. CAProgram Files(x86)\neevia.com\docConverterPro\temp\NVDC\6D6DAB73-D363-4087-8C64-4394C570DD8B\12691.docx4 Parking: Alcoholic beverage manufacturing would be subject to the same parking standards required for a manufacturing use. These standards take into consideration the low number of employees per square foot for the manufacturing and warehousing spaces, and the higher parking ratio requirements for office and retail spaces. Parking for the tasting room or outdoor patio area would be based on the standard for retail uses. Alcoholic beverage manufacturing uses have the option of meeting this requirement on site or through a shared parking arrangement with an adjacent property owner. The proposed Municipal Code amendments will add certainty, save time and reduce processing costs for new or expansion to existing manufactures of alcoholic beverages. Explicit definitions and use-specific standards allow the City to proactively address operational concerns, thereby minimizing future conflicts with neighbors while creating certainty for these land use types. LEGAL NOTICING REQUIREMENTS Notice of the public hearing was published in the San Diego Union Tribune on May 1, 2016 ENVIRONMENTAL DETERMINATION Staff has reviewed the project in accordance with the California Environmental Quality Act (CEQA) and has determined the project is exempt from the requirements of the CEQA pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the proposed amendments to Title 17 of the Temecula Municipal Code may have a significant effect on the environment. The proposed amendments do not result in a significant increase in the intensity or density of any land use above what is currently allowed in accordance with the Temecula Municipal Code. These proposed amendments add performance standards to an existing allowable use, currently regulated through the issuance of a conditional use permit. As such, there is no possibility that the proposed amendments will have a significant effect on the environment. ATTACHMENTS Planning Commission Resolution No. 16- Draft City Council Ordinance No. 16- CAProgram Files(x86)\neevia.com\docConverterPro\temp\NVDC\6D6DAB73-D363-4087-8C64-4394C570DD8B\12691.docx5 DRAFT PC RESOLUTION PC RESOLUTION NO. 16- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE ENTITLED "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING PORTIONS OF TITLE 17 (ZONING) OF THE TEMECULA MUNICIPAL CODE ESTABLISHING DEFINITIONS AND PERFORMANCE STANDARDS FOR USES INVOLVING THE MANUFACTURING OF ALCOHOLIC BEVERAGES WITH RETAIL SALES AND TASTING ROOMS, SUCH AS BREWERIES, DISTILLERIES, AND WINERIES AND FINDING THAT THIS ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINES, SECTION 15061(13)(3)" Section 1. Procedural Findings. The Planning Commission of the City of Temecula does hereby find, determine and declare that: A. On January 17, 1990, the City Council of the City of Temecula adopted the City's first Municipal Code. B. Staff identified a need to amend portions of Title 17 of the Temecula Municipal Code to establish definitions and performance standards for uses involving the manufacturing of alcoholic beverages with retail sales and tasting rooms, such as breweries, distilleries, and wineries (Planning Application No. LR16-0097). C. The Ordinance was processed including, but not limited to a public notice in the time and manner prescribed by State and local law. D. The Planning Commission considered the proposed amendments to Title 17 of the Temecula Municipal Code on May 11, 2016, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to provide public comment either in support or opposition to this matter. E. At the conclusion of the Planning Commission hearing and after due consideration of all written and oral comments received, the Planning Commission recommended that the City Council adopt the Ordinance attached hereto as Exhibit "A." F. All legal preconditions to the adoption of this Resolution have occurred. Section 2. The Planning Commission, in adopting this Resolution, hereby makes the following additional findings as required by Section 17.01.040 ("Relationship to General Plan") of the Temecula Municipal Code: A. The proposed amendments to Title 17 of the Temecula Municipal Code are allowed in the land use designations in which the uses are located, as shown on the land use map, or is described in the text of the General Plan because the Industrial Park land use designation supports the primary use of alcohol beverage manufacturing. The ancillary tasting room and live entertainment uses complement the primary manufacturing functionality of an alcohol beverage manufacturer. Additionally, retail use in the Industrial Park land use and Light Industrial designations is currently permitted. In the Service Commercial land use/zoning designations, manufacturing uses are permitted in the General Plan. B. The proposed amendments to Title 17 of the Temecula Municipal Code are in conformance with the goals, policies, programs and guidelines of the elements of the General Plan because the Economic Development and Land Use Elements of the General Plan contain goals, policies, programs and guidelines that support the proposed amendments. The Land Use element of the General Plan includes goals and policies that support diverse land uses. The Land Use element also encourages flexible zoning techniques in appropriate locations. The proposed amendments support the General Plan's desire to mix uses, and encourage flexible zoning. Land Use Goal 1 A diverse and integrated mix of residential, commercial, industrial, recreational, public and open space land uses. Policy 1.6 Encourage flexible zoning techniques in appropriate locations to encourage mixed use development, preserve natural features, achieve innovative site design, achieve a range of transition of densities, provide open space and recreation facilities, and/or provide necessary amenities and facilities. Land Use Implementation Program Number Three (LU-3) encourages the review and update of the Development Code to implement mixed uses. The proposed amendments fulfill the LU-3's desire to continuously review and update the code to help implement mixed-use land uses. LU-3 Development Code Update Review and update the Development Code to ensure consistency with the General Plan and to help implement mixed-use and rural preservation recommendations of the Land Use Element. The Economic Development element also identifies the desire to develop the Temecula Valley as a tourist destination. The proposed amendments support the goals of the Economic Development element's goals and policies by allowing alcohol beverage manufacturers to grow with more certainty and consistency. Consequently, more tourist venues could be available to enhance to overall desirability of Temecula. Economic Development Goal 6 A comprehensive, recognizable tourist destination, offering a range of attractions throughout and beyond the Planning Area. Policy 6.2 Support tourism venues, including commercial, recreational, convention, resort, and wine making activities that spotlight the desirability of and bring visitors to the Temecula Valley. C. The proposed amendments to Title 17 of the Temecula Municipal Code are consistent with the General Plan and all applicable provisions contained therein because the proposed amendments are allowed in the land-use designations in the General Plan and in conformance with the identified goals, policies, programs and guidelines as identified in the General Plan. Section 3. Recommendation of Approval. The City of Temecula Planning Commission hereby recommends the City Council adopt an ordinance entitled, "An ordinance amending portions of Title 17 (Zoning) of the Temecula Municipal Code establishing definitions and performance standards for uses involving the manufacturing of alcoholic beverages with retail sales and tasting rooms, such as breweries, distilleries, and wineries and finding that this Ordinance is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines, Section 15061(b)(3)." Section 4. Environmental Compliance. The Planning Commission hereby finds that this Ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the proposed amendments to Title 17 of the Temecula Municipal Code may have a significant effect on the environment. The proposed zoning code amendments do not result in a significant increase in the intensity or density of any land use above what is currently allowed under the Temecula Municipal Code. The proposed code amendments add performance standards to an existing allowable use, currently regulated through the issuance of a conditional use permit. As such, there is no possibility that the proposed amendments will have a significant effect on the environment. Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 11th day of May, 2016. Ron Guerriero, Chairman ATTEST: Luke Watson, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Luke Watson, Secretary of the Temecula Planning Commission, do hereby certify that the forgoing PC Resolution No. 16- was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 11 t" day of May 2016, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Luke Watson, Secretary DRAFT ORDINANCE ORDINANCE NO. 16- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING PORTIONS OF TITLE 17 (ZONING) OF THE TEMECULA MUNICIPAL CODE ESTABLISHING DEFINITIONS AND PERFORMANCE STANDARDS FOR USES INVOLVING THE MANUFACTURING OF ALCOHOLIC BEVERAGES WITH RETAIL SALES AND TASTING ROOMS, SUCH AS BREWERIES, DISTILLERIES, AND WINERIES AND FINDING THAT THIS ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINES, SECTION 15061(13)(3) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Purpose and Intent. Staff has been approached by microbreweries that operate in the City about extending their uses and hours of operation of the retail sales and tasting room. Additionally, staff has been approached about the establishment of a microdistillery within the City, which would also include retail sales and a tasting room as part of the facility. A review of the Temecula Municipal Code indicates that existing regulations pertaining to the manufacturing and sale of alcoholic beverages are not geared toward regulating the retail sales and the tasting room portion of these land use types. Section 2. Procedural Findings. The City Council of the City of Temecula does hereby find, determine and declare that: A. City staff identified the need to make revisions and clarifications to portions of Title 17 of the Temecula Municipal Code. B. The Planning Commission considered the proposed amendments to Title 17 of the Temecula Municipal Code ("Ordinance") on May 11, 2016 at a duly noticed public hearing as prescribed by law, at which time the City Staff and interested persons had an opportunity to provide public comment either in support of or opposition to this matter. C. At the conclusion of the Planning Commission hearing and after due consideration of all written and oral comments received, the Planning Commission adopted Resolution No. 16- , recommending that the City Council adopt this Ordinance. D. On May 24, 2016, the City Council held a duly noticed public hearing, as prescribed by law, providing an opportunity for the public to comment on this Ordinance. The City Council considered all written and oral comments prior to its adoption of this Ordinance.. E. All legal prerequisites to the adoption of this Ordinance have occurred. Section 3. Further Findings. The City Council, in approving the proposed Ordinance, hereby makes the following additional findings as required by Section 17.01.040 ("Relationship to General Plan") of the Temecula Municipal Code: A. The proposed amendments to Title 17 of the Temecula Municipal Code are allowed in the land use designations in which the uses are located, as shown on the land use map, or is described in the text of the General Plan because the Industrial Park land use designation supports the primary use of alcohol beverage manufacturing. The ancillary tasting room and live entertainment uses complement the primary manufacturing functionality of an alcohol beverage manufacturer. Additionally, retail use in the Industrial Park land use and Light Industrial designations is currently permitted. In the Service Commercial land use/zoning designations, manufacturing uses are permitted in the General Plan. B. The proposed amendments to Title 17 of the Temecula Municipal Code are in conformance with the goals, policies, programs and guidelines of the elements of the General Plan because the Economic Development and Land Use Elements of the General Plan contain goals, policies, programs and guidelines that support the proposed amendments. The Land Use element of the General Plan includes goals and policies that support diverse land uses. The Land Use element also encourages flexible zoning techniques in appropriate locations. The proposed amendments support the General Plan's desire to mix uses, and encourage flexible zoning. Land Use Goal 1 A diverse and integrated mix of residential, commercial, industrial, recreational, public and open space land uses. Policy 1.6 Encourage flexible zoning techniques in appropriate locations to encourage mixed use development, preserve natural features, achieve innovative site design, achieve a range of transition of densities, provide open space and recreation facilities, and/or provide necessary amenities and facilities. Land Use Implementation Program Number Three (LU-3) encourages the review and update of the Development Code to implement mixed uses. The proposed amendments fulfill the LU-3's desire to continuously review and update the code to help implement mixed-use land uses. LU-3 Development Code Update Review and update the Development Code to ensure consistency with the General Plan and to help implement mixed-use and rural preservation recommendations of the Land Use Element. The Economic Development element also identifies the desire to develop the Temecula Valley as a tourist destination. The proposed amendments support the goals of the Economic Development element's goals and policies by allowing alcohol beverage manufacturers to grow with more certainty and consistency. Consequently, more tourist venues could be available to enhance to overall desirability of Temecula. Economic Development Goal 6 A comprehensive, recognizable tourist destination, offering a range of attractions throughout and beyond the Planning Area. Policy 6.2 Support tourism venues, including commercial, recreational, convention, resort, and wine making activities that spotlight the desirability of and bring visitors to the Temecula Valley. C. The proposed amendments to Title 17 of the Temecula Municipal Code are consistent with the General Plan and all applicable provisions contained therein because the proposed amendments are allowed in the land-use designations in the General Plan and in conformance with the identified goals, policies, programs and guidelines as identified in the General Plan. Section 4. Environmental Findings. The City Council hereby finds that this Ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the proposed amendments to Title 17 of the Temecula Municipal Code may have a significant effect on the environment. The proposed amendments do not result in a significant increase in the intensity or density of any land use above what is currently allowed in accordance with the Temecula Municipal Code. These proposed amendments add performance standards to an existing allowable use, currently regulated through the issuance of a conditional use permit. As such, there is no possibility that the proposed amendments will have a significant effect on the environment. Section 5. Section 17.34.010 of Chapter 17.34 of Title 17 of the Temecula Municipal Code is hereby amended by adding the following definitions to read as follows.. Alcoholic beverage manufacturing" means an establishment that produces or manufactures alcoholic beverages and is licensed by the Department of Alcoholic Beverage Control of the State of California. These type of establishments may (1) sell alcohol that is produced or manufactured on the alcoholic beverage manufacturer's licensed premises for On-Sale or Off-Sale consumption, (2) include accessory uses such as tours, specialty dinners, food pairings, retail sales, and/or on-site consumption, and (3) include tasting rooms. Typical uses include breweries, distilleries and wineries. "Tasting Room" means a separate area on the alcoholic beverage manufacturer's licensed premises maintained and operated by and for an alcoholic beverage manufacturer, wherein alcoholic beverages may be sold and served by an employee or designated representative of the alcoholic beverage manufacturer to consumers of legal drinking age for consumption on the alcoholic beverage manufacturer's licensed premises. Alcoholic beverages manufactured elsewhere may not be sold in the tasting room or on the alcoholic beverage manufacturer's licensed premises. A tasting room is, and at all times shall remain, an ancillary use to the alcoholic beverage manufacturing use." Section 6. Table 17.08.030 of Chapter 17.08 of Title 17 of the Temecula Municipal Code is hereby amended as follows: Add rows titled "Alcoholic beverage manufacturing" and "Alcoholic beverage manufacturing with live entertainment" and revise row titled "Restaurants with lounge or live entertainment" in Table 17.08.030 to read as follows: Table 17.08.030 Schedule of Permitted Uses Commercial/Office/Industrial Districts Description of Use INCI CC I HTISCIP01 BPI LI A Alcoholic beverage manufacturing - - - C - P P Alcoholic beverage manufacturing with live entertainment ' - - - C - C C R Restaurants with lounge or live entertainment ' - C C C - C C Notes: 1. Subject to the supplemental development standards contained in Chapter 17.10 of this code. Section 7. Section 17.10.020.8 of Chapter 17.10 of Title 17 of the Temecula Municipal Code is hereby amended by adding Subsection 11. Alcoholic Beverage Manufacturing" to read as follows: 11. Alcoholic Beverage Manufacturing. a. Businesses manufacturing alcoholic beverages, which have a tasting room, but do not have a bona fide eating establishment (as defined by the California Department of Alcoholic Beverage Control) in conjunction with the manufacturing business, shall shall have the appropriate license from the California Department of Alcoholic Beverage Control and shall be operated according to all applicable state and local health and safety requirements and regulations. b. All businesses manufacturing alcoholic beverages shall comply with all land use regulations and site development standards of the zoning district in which they are located. C. All businesses manufacturing alcoholic beverages shall obtain a business license with the City as set forth in Title 5 of the Temecula Municipal Code. d. Prior to an employee selling or serving alcohol, the alcohol licensee or employer shall ensure that the employee has received Licensee Education on Alcohol and Drugs (L.E.A.D) training from the California Department of Alcoholic Beverage Control or similar training if available from the Temecula Police Department. e. An 8.5" x 11" (or larger) sign listing local transportation service providers and corresponding telephone numbers shall be posted at a conspicuous location within the building. f. The dispensing of alcohol may occur between the hours of 10:00 A.M. and 10:00 P.M., unless otherwise specified as part of a temporary use permit. g. On-site alcohol sales shall be limited to product manufactured on-site. h. There shall be no admission fee, cover charge, nor minimum purchase required. i. The retail area, including the tasting room, shall not exceed 15% of the total floor area of the business. The retail area shall not include the area where typical alcoholic beverage manufacturing functions occur. j. In addition to the retail area (tasting room), an outdoor patio area may be allowed, but may not exceed 50% of the total allowable retail area. k. The outdoor patio area must be secured, consistent with California Department of Alcoholic Beverage Control requirements. I. Signs shall be posted inside the building near the exit door of the tasting room and exit door of the outdoor seating area stating: "No alcohol allowed past this point." M. All alcoholic beverage manufacturing equipment and storage activities shall be located within a completely enclosed building within the Service Commercial (SC) Zoning District. n. An alcoholic beverage manufacturing facility shall meet the off-street parking requirements as set forth in Chapter 17.24 of the Temecula Municipal Code. For the purposes of calculating parking, the brewing areas shall be considered manufacturing, the cold and warm storage areas shall be considered warehousing, office space shall be considered office, and the tasting room and outdoor patio shall be considered retail. o. The display of alcoholic beverages shall not be located outside of a building or within five (5) feet of any public entrance to the building. P. There shall be no live entertainment, DJ's, or amplified sound on the alcoholic beverage manufacturer's licensed premises at any time without issuance of a conditional use permit or temporary use permit. q. The number of persons shall not exceed the maximum occupancy load as determined by the Temecula Fire Department. Signs indicating the occupant load shall be posted in a conspicuous place on an approved sign near the main exit from the room. r. The real property upon which an alcoholic beverage manufacturing use is operated shall be permanently maintained in an orderly fashion by the provision of regular landscape maintenance, removal of trash and debris, and removal of graffiti within forty eight (48) hours from the time of occurrence. S. Parking lots, driveways, circulation areas, aisles, passageways, recesses and grounds contiguous to buildings that contain an alcoholic beverage manufacturing use shall be illuminated and make clearly visible the presence of any person on or about the alcoholic beverage manufacturer's licensed premises during the hours of darkness as set forth in Section 17.08.070 and 17.24.050 of the Temecula Municipal Code. t. A security plan in a form satisfactory to the Temecula Police Department shall be submitted to and approved by the Temecula Police Department. The security plan shall be formulated to deter loitering, unlawful conduct of employees and patrons, to promote the safe and orderly assembly and movement of persons and vehicles, and to prevent disturbances to surrounding uses and the neighborhood by excessive noise created by patrons entering or leaving the alcoholic beverage manufacturer's licensed premises." Section 8. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid, such invalidity shall not affect the validity of the remaining portions of this Ordinance or any part hereof. The City Council of the City of Temecula hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared invalid. Section 9. Publication and Posting. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same or a summary thereof, to be published and posted in the manner required by law. Section 10. Effective Date. This Ordinance shall take effect thirty days after its passage. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 24th day of May, 2016. Michael S. Naggar, Mayor ATTEST: Randi Johl, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 16- was duly introduced at a meeting of the City Council of the City of Temecula on the 24th day of May, 2016, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of June, 2016, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Randi Johl, City Clerk