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84-86 Derby Street Certified Decision �G - b Ct3NDIT,__, y CITY OF SALEM, MASSACHUSETTS e ZONING BOARD OF APPEALS %, •-. ,mac. 98 WASHINGTON STREET ♦ SALEM,MASSACHUSETTS 01970 C= DOMINICK PANGALLO TEL:978-619-5685 , Mn MAYOR June 6, 2025 �` ' Amended Decision* CO City of Salem Zoning Board of Appeals � 0 The petition of HOLLY MAITLAND at 84-86 DERBY STREET (Map 41, Lot 0064) (131 Zoning District and Derby Street Historic District) for a Special Permit per Section 3.1.2 Special Permit to serve alcoholic beverages in a restaurant not currently serving alcoholic beverages. *The original decision was filed with the City Clerk on June 5, 2025. This decision incorrectly named "Mr. Varela" as "Councilor Varela." Mr. Varela represented himself as an individual rather than as a City official. On May 21, 2025, the following members of the Salem Zoning Board of Appeals were present: Nina Vyedin, Hannah Osthoff, Peter Habib, Christa McGaha, and Stephen Larrick. Ellen Simpson was absent. Statements of Fact: The petition was date-stamped on April 4, 2025.The petitioner sought Zoning Board of Appeals approval to serve alcoholic beverages in a restaurant not currently serving alcoholic beverages. 1. Ryan Macione owned 84-86 Derby Street. 2. Holly Maitland was the petitioner. 3. 84-86 Derby Street is in the B1 Zoning District and Derby Street Historic District (Map 41, Lot 0064). 4. The Salem City Council passed an amendment to the Zoning Ordinance on March 13, 2025, allowing a Special Permit for restaurants serving alcohol in the B1 Zoning District where previously not allowed. Mayor Dominick Pangallo approved the amended Zoning Ordinance on March 17, 2025. 5. On May 21, 2025, Holly Maitland and Andrew Varela (in attendance representing himself and not in his capacity as City Councilor),co-owners of Maitland Kitchen Farms and Spirits, introduced proposed plans to the Board. Ms. Maitland stated that in March 2024, the Board approved using 84-86 Derby Street as a distillery with a tasting room. Ms. Maitland explained that they did not want to restrict their business to purely spirits. Thus, since October 2024,the property has operated as a full-service restaurant. Ms. Maitland stated that serving alcohol would allow Maitland Kitchen Farms and Spirits to provide a complete City of Salem Zoning Board of Appeals June 6, 2025 Page 2of6 dining experience, offset operating costs, and continue to provide equitable community food options. 6. Ms. Maitland stated that operating hours would remain from 11:30 a.m.to 8:30 p.m. and that a restaurant serving alcohol would be consistent with the neighborhood's character. Ms. Maitland noted that while 84-86 Derby Street has no off-street parking, it is located close to walkable locations in Salem. She said she anticipates that most patrons would walk or bike to Maitland Kitchen Farms and Spirits, resulting in minimal traffic. 7. Chair Vyedin asked for Maitland Kitchel Farms and Spirits' days of operation. 8. Ms. Maitland stated the business is open from Wednesday to Sunday, and from 11:30 a.m. to 8:30 p.m. on Friday and Saturday. 9. Chair Vyedin asked what changes would occur to the business with the service of alcohol. 10. Ms. Maitland stated that she anticipates minor changes to their business because alcohol would only be paired with existing meals, like a bottle of wine paired with house-made pasta. She noted this would bring more dinner patrons because a lack of alcoholic beverages turns away many potential customers. 11. Chair Vyedin asked if there would be an increase in deliveries to 84-86 Derby Street because alcohol would be introduced to the business. 12. Mr.Varela stated that most food deliveries are done through independent operators. He explained that they would have the same vendors and delivery schedule as the neighboring Veterans of Foreign Wars (VFW), with one delivery each week between two (2) distributors. Mr. Varela noted smaller beer and wine distributors regulated by the Alcoholic Beverages Control Commission (ABCC) operate independently from this schedule. 13. Mr. Varela stated that Maitland Kitchen Farms and Spirits has outgrown the distillation space. He noted the business has been moving more towards food and libation-focused services, like what the neighborhood is looking for. 14. Mr. Habib asked if outdoor seating would be provided. 15. Mr. Varela stated there is no opportunity for outdoor dining other than extending Derby Street. He noted that Maitland Kitchen Farms and Spirits has no goal to acquire outdoor dining because it would be impossible. 16. Mr. Habib asked if the proposed change would provide increased staffing. 17. Mr. Varela responded that there are three (3) staff consisting of himself, Ms. Maitland, and an additional staff member. He explained that he would like to hire more service and kitchen staff to relieve himself and Ms. Maitland from working full-time. Mr.Varela stated that a City Community Development Block Grant loan allowed them to hire economically .disadvantaged individuals under a certain Area Median Income. He noted his goal would be to hire three (3) more part-time staff. 18. Mr. Habib stated he appreciates Mr. Varela and Ms. Maitland taking over the property from the previous retailer. He added allowing beer and liquor sales provides growth opportunities for the business. Mr. Habib further noted that allowing the sale of beer and liquor brings Maitland Kitchen and Spirits closer to the character of the existing commercial neighborhood. City of Salem Zoning Board of Appeals June 6, 2025 Page 3 of 6 19. Chair Vyedin asked Mr. Varela to review the Statement of Grounds. Mr. Varela reviewed the submitted Statement of Grounds: A. The proposed restaurant with the service of alcohol fills a need for additional business development in the City of Salem. The restaurant would enhance the current offerings of Maitland Mountain Farm by providing an attractive restaurant serving craft cocktails.The restaurant would bring awareness to Maitland Mountain Farm and its mission to educate its patrons on the importance of sustainable growing practices, providing community members with access to fresh and healthy foods, improving the local economy and environment, and increasing the economic resiliency of the community. B. The proposed restaurant with the service of alcohol would be located in a very walkable neighborhood near bicycle routes, the Salem Ferry, Pickering Wharf, and South River Parking Garage. There would also be available on-street parking meters along Derby Street. Patrons would not be likely to utilize vehicles and would walk or bike to the establishment. Minimal traffic impacts are expected. C. Existing utilities and public services would be adequate for the proposed use and consistent with other uses in the area and the B1 Zoning District.The structure would be connected to municipal water and sewer services. D. The proposed establishment would not impact the natural environment or have a significant effect on existing drainage. Maitland Kitchen Farms and Spirits plans on creating an attractive, comfortable, welcoming environment for patrons with some cosmetic improvements to the building exterior, specifically new signage and a new door. E. The existing neighborhood would be a commercially active area, so the proposed establishment would be in harmony with the other nearby business uses and the existing neighborhood character. Abutting businesses include a pre-existing non-conforming lodge serving alcohol and food and a pre-existing nonconforming restaurant with service of alcoholic beverages. F. The proposed establishment would employ approximately ten (10) residents. Additionally, the use would have a positive financial impact on the City's local receipts by generating revenue through various means including but not limited to real estate taxes, building permit fees, licensing fees, and local meals tax.The proposed use would increase the commercial tax base which ultimately provides relief to the residential ratepayers. The use would contribute to the economic growth, development, and revitalization of the Derby Street neighborhood, thus increasing overall property values. 20. Mr. Larrick asked Mr. Varela if existing patrons come from the Ferry Parking Lot, walk, or bike to 84-86 Derby Street. 21. Mr. Varela stated that the Ferry Lot is helpful to attract business when open to the public from November to April. He explained that the neighborhood is very walkable and that their goal is to engage residents in the immediate area. He explained that Maitland Kitchen Farm and Spirits has been in touch with the neighboring VFW because some patrons park in their lot. 22. Chair Vyedin opened up for public comment. City of Salem Zoning Board of Appeals June 6, 2025 Page 4of6 23. The Board received four (4) written comments. 24. The following members of the public spoke in favor of the petition during the public hearing: Flora Tonthat (30 Northey Street), Barbara Kelley (11 Cousin Street), Seth Lajoe (27 Becket St), Jen Lajoe (27 Beckett Street), Charles Hildebrand (46 English Street), Miyabe Shields (469 Loring Avenue), Ryan Harriman (24 English Street), and Kelsey Schmink (86 Derby Street Unit 1). 25. Allison Draper, 86 Derby Street Unit 3, asked what plans were in place to reduce the volume of patrons waiting to enter Maitland Kitchen Farms and Spirits. She stated that music from the business is audible and can be felt in the apartment. Ms. Draper noted patrons and staff often smoke in front of windows, resulting in smoke entering the apartment. She added she is looking for a happy balance between restaurant success and a healthy/quiet living space. 26. Chair Vyedin asked what times staff arrive and leave from 84-86 Derby Street. 27. Mr. Varela stated that staff never arrive before 8:00 a.m. He noted bread deliveries may arrive at 6:00 a.m. or 7:00 a.m., and the last seating must leave at 10:00 p.m. 28. Chair Vyedin asked how long it takes to close Maitland Kitchen Farms and Spirits. 29. Mr. Varela stated that closing takes one (1) hour and creates minimal nuisances. 30. Chair Vyedin asked if the business has plans to manage outside patrons. 31. Mr. Varela stated that no employees smoke in front of the business and that Maitland Kitchen Farms and Spirits is in a highly trafficked pedestrian area. He added that Maitland Kitchen Farms and Spirits is licensed for entertainment through the Licensing Board. 32. Mr. Varela stated when Maitland Kitchen Farms and Spirits installed double five-eighths (5/8) inch green glue sub-acoustic medium as drywall when they moved into 84-86 Derby Street. Mr. Varela noted they have received no noise-level nuisance calls or health complaints. 33. Ward Five City Councillor Jeff Cohen stated he does not believe in the B1 Business Neighborhood concept. Councillor Cohen explained under the B1 District, many neighborhoods could not have grocers, daycare centers could not operate, and restaurants could not serve liquor without being grandfathered under the B1 District. Councillor Cohen added, as an example, that he was against the concept of a B1 District that eliminates competition when zoned next to an existing bar. He noted that amendments loosening restrictions in the Zoning Ordinance positively impacted Salem by spreading out the community in the B1 District. 34. Mr. Varela stated that most vehicle deliveries are made with straight, twenty-one (21) foot trucks. He added that there are no convenient places to unload deliveries, yet he would love to talk with distributors blocking crosswalks. 35. Chair Vyedin noted she lived off Derby Street and is familiar with the street's tightness. 36. Mr. Habib stated Derby Street's tightness brings neighborhood quality because the restaurant has a neighborhood feel. He added that noise and loading issues are normal in a business district, and the impact of the restaurant would be minimal because it has a maximum seating of twenty to twenty-five (20-25) patrons. Mr. Habib noted that the proposed use would enhance what is already existing rather than detract from it. City of Salem Zoning Board of Appeals June 6, 2025 Page 5 of 6 37. Mr. Larrick stated that the Board has echoed much of what he was going to say about this proposal. He noted that the Derby Street neighborhood has overwhelmingly supported the restaurant. Mr. Larrick explained that most comments were concerning parking, impacts on residential uses, and noise. Yet this business would be a unique opportunity to support walkability. He noted he is in full support of the project because the adjacent VFW has outdoor music, the restaurant would close early, and higher margins would support Maitland Kitchen Farms and Spirits' continued existence. 38. Ms. McGaha stated she lives within walking distance of Maitland Kitchen Farms and Spirits. Ms. McGaha noted it fits within the character of the Derby Neighborhood. She added she understands some input yet believes the location is a good fit for the restaurant. 39. Chair Vyedin added that elected officials in the City Council voted to extend and change the B1 Zoning District to support establishments serving alcohol. She noted there was little indication from the public showing 84-86 Derby Street is not a great candidate for the Special Permit. 40. Ms. Osthoff motioned to approve the petition. Based on the above statements of fact and findings, the Salem Zoning Board of Appeals voted five (5) in favor, (Nina Vyedin (Chair), Hannah Osthoff, Peter Habib, Christa McGaha, and Stephen Larrick) and zero (0) opposed, to grant Holly Maitland at 84-86 Derby Street (Map 41, Lot 0064) (131 Zoning District and Derby Street Historic District) a Special Permit per Section 3.1.2 Special Permit to serve alcoholic beverages in a restaurant not currently serving alcoholic beverages. Standard Conditions: 1. Petitioner shall comply with all city and state statutes, ordinances, codes and regulations. 2. All construction shall be done as per the plans and dimensions submitted to and approved by the Building Commissioner. 3. All requirements of the Salem Fire Department relative to smoke and fire safety shall be strictly adhered to. 4. Petitioner shall obtain a building permit prior to beginning any construction. 5. Exterior finishes of the new construction shall be in harmony with the existing structure. 6. A Certificate of Occupancy is to be obtained. 7. A Certificate of Inspection is to be obtained. 8. Petitioner is to obtain approval from any city board or commission having jurisdiction including, but not limited to, the Planning Board. 9. Petitioner shall obtain street numbering from the City of Salem Assessor's Office and shall display said number so as to be visible from the street. 10. Unless this Decision expressly provides otherwise, any zoning relief granted does not empower or authorize the Petitioner to demolish or reconstruct the structure(s) located on the subject property to an extent of more than fifty percent (50%) of its floor area or more than fifty percent (50%) of its replacement cost at the time of destruction. If the City of Salem Zoning Board of Appeals June 6, 2025 Page 6of6 structure is demolished by any means to an extent of more than fifty percent(50%) of its replacement cost or more than fifty percent (50%) of its floor area at the time of destruction, it shall not be reconstructed except in conformity with the provisions of the Ordinance. 11. All construction shall be done per the plans and dimensions submitted to and approved by this Board. Any modification to the plans and dimensions must be approved by the Board of Appeals unless such changes are deemed a minor field change.by the Building Commissioner in consultation with the Chair of the Board of Appeals. 12. Petitioner shall schedule Assessing Department inspections of the property, at least annually, prior to project completion and a final inspection upon project completion. Xn- a V it l iV Nina Vyedin, hair Zoning Board of Appeals A COPY OF THIS DECISION HAS BEEN FILED WITH THE PLANNING BOARD AND THE CITY CLERK. Appeal from this decision, if any, shall be made pursuant to Section 17 of the Massachusetts General Laws Chapter 40A, and shall be filed within 20 days of filing of this decision in the office of the City Clerk. Pursuant to the Massachusetts General Laws Chapter 40A, Section 11, the Variance or Special Permit granted herein shall not take effect until a copy of the decision bearing the certificate of the City Clerk has been filed with the Essex South Registry of Deeds. Date JUL 01 2025 1 hereby certify OW 20 days Iwe wed fro���the date this instrument was mcairo edl„and that NO APPEAL has:bow filbd in the" affira. A True, ATTE.,-UMO TY Cu.LE KS,fterr+; Mass.