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ZONING AMENDMENT SEC 10 0 DEFINITIONS TASTING ROOM - PLANNING I Planning Board Report to Council Regarding Zoning Amendment - '�0-5-����-CZoorv� — -� CZo1�� Citp of +alrm, 41am5arb"ttt-5 R E CI V Of fire of the QCitp Council CCitpfall HAY 17 2016 DEFT. OF P; COUNCILLORS-AT-LARGE JOSH H.TURIEL COMM U NIy,�lAIi4C6�1h1CILL`OFA$ PRESIDENT 2016 2016 THOMAS H.FUREY CHERYL A. LAPOINTE ROBERT K.MCCARTHY ELAINE F. MILO CITY CLERK HEATHER E. FAMICO JERRY L. RYAN - STEPHEN P. LOVELY ARTHUR C.SARGENT, III DAVID W.EPPLEY JOSH H.TURIEL BETH GERARD STEPHEN G.DIBBLE May 17, 2016 Ms. Lynn Duncan, Planner City of Salem Salem, MA 01970 Dear Ms. Duncan: At a regular meeting of the City Council,held on May 12, 2016 the enclosed Zoning Ordinances were adopted for second and final passage. This action was approved by Mayor Kimberley Driscoll on May 16, 2016. Sincerely, � e a � . CHERYL A. LAPOINTE CITY CLERK Enclosure SALEM CITY HALL• 93 WASHINGTON STREET• SALEM, MA 01970-3592 • W W W.SALEM.COM RECEIVED e/sa&n MAY 17 2016 DEPT. OF PLANNING & COMMUNITY DEVELOPMENT In the year two thousand and sixteen An Ordinance to amend an Ordinance relative to Zoning Be it ordained by the City Council of the City of Salem, as follows: Section 1. Section 10.0—Definitions of the City of Salem Zoning Ordinance is hereby amended by deleting the following sentence found within the definition of Tasting Room: "A tasting room may not be greater than thirty-three(33)percent of the main building's gross square footage." And replacing it with: "A tasting room may not be greater than fifty(50) percent of the main building's gross square footage. A seasonal tasting area is permissible, e.g. patio or deck,but shall not be included in calculating the tasting room's square footage for purposes of zoning compliance; however,the square footage of a seasonal tasting area is applicable to building, plumbing and other relevant codes." Section 2. This Ordinance shall take effect as provided by City Charter. In City Council February 26, 2016 Referred to the Planning Board to schedule a joint public hearing with the City Council Joint Public Hearing held April 21, 2016 Advertised in the Salem News April 7, 2016 and April 14, 2016 The hearing was closed Referred to the Planning Board for their recommendation In City Council April 28, 2016 Planning Board Recommendation received Adopted for first passage by roll call vote of 10 yeas, 0 nays, 1 absent In City Council May 12, 2016 Adopted as amended for second and final passage by a roll call vote of 10 yeas, 0 nays, 1 absent Approved by the Mayor on May 16, 2016 "� ^ /J _/J ATTEST: CHER A. LAPOINTE CITY CLERK RECEIVCED MKI 17 2016 City of Salem p , DEPT. OF PLANNING & COMMUNITY DEVELOPMENT Yea and Nay Vote of City Council Upon the Question of In r nc Yea Nay Pres. Absent Date ja— 2016 Stephen Dibble [/ David W. Epple Heather E. Famico Thomas H. Furey Beth Gerard Ste en-P." Robert IC McCarthy Elaine F. Milo Jerry L.Ryan Arthur C. Sargent, III Josh H. Turiel President Totals A A TRUE CUPS 7TT ST S� c!'y CLERK C CLERK {, CITY OF SALEM PLANNING BOARD 1016 APA 22 A 10: 18 CITY Report to City Council April 22,2016 At its meeting on April 21, 2016 the Planning Board voted to recommend approval of amending the City of Salem Zoning Ordinance Section 10.0,Definition of a Tasting Room by deleting: "A tasting room may not be greater than thirty-three (33) percent of the main building's gross square footage" and replacing it with: "A tasting room may not be greater than fifty (50) percent of the main building's gross square footage. An exterior seasonal tasting area, e.g. patio or deck, shall not be included in calculating the tasting room's square footage for purposes of zoning compliance; however, the square footage of seasonal tasting areas is applicable to building, sanitary and other relevant codes." The Planning Board voted, Seven (7) in favor (Mr. Veno, Ms. Yale, Mr. Rieder, Ms. Hamilton, Mr. Mataragas, Mr. Griset and Mr. Koretz) and none opposed, to recommend the proposed zoning amendment as it was referred to the Planning Board from the City Council.. In making this recommendation, the Planning Board unanimously recognizes that this is an evolving issue, and notes the following for future consideration by the City Council: 1. The definition of the "main building" should be clarified. Specifically the board recommends that in a case in which there are multiple buildings on one site, cumulative gross square footage of all buildings on the site shall be used to calculate the percentage. 2. The percentage requirements are likely to be unnecessary given other regulatory oversite. The Planning Board urges the City Council to consider eliminating the percentage requirement in the future. If you have any questions regarding this matter,please feel free to contact Lynn Duncan,Director of Planning& Community Development, at 978-619-5685. Yours truly, Matt Veno,Vice Chair CC: Cheryl LaPointe,City Clerk wir `sa CITY OF SALEM LEGAL DEPARTMENT - 93 WASHINGTON STREET'♦SALEK MA.SSACHUSECiS 01970 Tt+i 978-745-9595♦FAx:978-7441279 KmEIUEY DRISCOLL EUzeBEm RENNARD,ESQ. VICTORIA CALME14 ESQ. MAYOR CTTYSOLICTTOR ASST.CITY SOLKIrm bmnnazd t@salem.mm vc2ldwe0@wlem.com April 21,2016 Salem City Council City Hall Salem,Massachusetts Salem Planning Board c/o Lynn Duncan,City Planner 120 Washington Street Salem,Massachusetts Ladies and Gentlemen of the Planning Board and City Council: Enclosed herewith is a proposed revision,highlighted in yellow,to the Zoning Ordinance amendment before you this evening. The proposed revision was suggested by the City's Zoning Officer/Building Inspector Thomas St.Pierre. Mr. St.Pierre suggests that the revised definition of a Tasting Room makes it clear that Massachusetts Building and Plumbing Codes must be followed when constructing a Tasting Room. For example,the total number of seats,whether in or outdoors, shall be used when calculating the number of restroom fixtures a business must have available. I recommend adoption of the enclosed revised Zoning Ordinance amendment. Thank you for your consideration. Sincerely, I,�zabeth Rennard City of Salem in the yearQ'wo 71iiousandandStXyen An Ordinance to amend the Ordinance relative to Zoning Be it ordained 6y the City Councirof the City of Salem, as follows: Section 1. Section 10.0 -Definitions of the City of Salem Zoning Ordinance is hereby amended by deleting the following sentence found within the definition of Tasting Room: "A tasting room may not be greater than thirty-three(33)percent of the main building's gross square footage." and replacing it with: "A tasting room may not be greater than fifty(50)percent of the main building's gross square footage.A seasonal tasting area is permissible,e.g.patio or deck,but shall not be included in calculating the tasting room's square footage for purposes of zoning compliance;however,the square footage of a seasonal tasting area is applicable to building,plumbing and other relevant codes." Section 2: This Ordinance shall take effect as provided by City Charter. April 18, 2016 Mayor Kim Driscoll Salem City Hall 93 Washington Street Salem MA 01970 Dear Mayor Driscoll, My name is Rob Martin and I am President of the Massachusetts Brewers Guild as well as the President of the Ipswich Ale Brewery and Brewers Table Restaurant in Ipswich, MA. I am reaching out today on behalf of Chris Lohring and the Notch Brewing Company. Brewing in Massachusetts has become an incredible vibrant industry that is providing real manufacturing jobs in a time when they are becoming increasingly hard to come by.This industry is not just a flash in the pan but rather an evolution of an idea that started over 30 years ago. Chris was a pioneer in this evolution and the fact that he is bringing his decades of brewing experience to Salem should be looked at as a boon for the city! Through my role in the Massachusetts Brewers Guild as well as through owning my own operation I have seen first-hand the positive impacts having a brewery in a municipality can and do generate.These include real manufacturing jobs, increased tourism and increased tax revenue for the municipality to name just a few. We have been brewing beer at the Ipswich Ale Brewery for 25 years and 2 years ago we moved into a new, downtown Ipswich brewery.The town of Ipswich was incredible helpful during the permit process recognizing the value the brewery would bring to an otherwise vacant space and looking toward us to be an "anchor" business downtown.This past January 2nd we opened "The Brewers Table", a full service restaurant in the middle of the brewing operation. Our restaurant functions under a "Farmer Series Pouring Permit"just as the Notch Tasting room will. The town of Ipswich took the long view by not putting a size restriction on our restaurant operation, understanding that we would be a contributing member of the down town business community and that flexibility in the business would help insure long term success. I would urge you to do the same with Notch. In our highly regulated industry there are many hurdles to clear in order to open a facility and many checks and balances that are continually monitored by both the Federal and State regulators to ensure public safety and that all business activities are above board. Additional size restrictions take away the business owners ability to be nimble and react to changing business conditions. I am convinced that the Notch Brewery will be a long term asset to Salem as I have seen so many other breweries be in their home municipalities. Allowing Chris to have an unencumbered seating capacity that is based on the building code as opposed to arbitrary numbers will help in the success of his business ultimately will contribute to the ongoing success of Salem. Sincerely, Rob Martin, President Massachusetts Brewers Guild Ipswich Ale Brewery NOTCH AMERICAN SESSION BEER RECEIVED 4/15/16 APR 1 `) 2016 Salem City Council&Planning Board DEPT. OF PLANNING & Salem City Hall COMMUNITY DEVELOPMENT 93 Washington Street Salem, MA 01970 Dear Councilors and Board Members, Thank you for the opportunity to address the petition to amend the City of Salem's Zoning Ordinance for the Farmer Series Pouring Permit. I would like to address two key points as it pertains to the amendment, 1) necessity of retail for our business model, and 2) economic impact on Salem. First, some background on the Famer Series Pouring Permit should be noted. On July 11, 2013,the MA legislature authorized a new type of"pouring permit"for Farmer-Breweries, Farmer-Wineries Farmer Distilleries under M.G.L. c. 138,§ 19 ("Farmer Series Pouring Permit").The Farmer Series Pouring Permit is an on-premises license which allows the licensee to sell the alcoholic beverages it manufactures on its premises (and ONLY the alcoholic beverages it produces). Previously, Farmer Brewers and Farmer Wineries serving direct to the consumer for on-site consumption were licensed as pouring permits under M.G.L. c. 138, § 12("Restaurant Pouring Permit").The Farmer Series Pouring Permit follows the same process as all retail licenses and must ensure that they are in compliance with the laws of the Commonwealth of Massachusetts,and that sales of alcoholic beverages take place only as authorized by state law. 1) Necessity of Retail When Salem addressed the zoning of the new Farmer Series Pouring Permit,a limit of 33%was made on the size of the tasting/tap room relative to the entire"main building's gross square footage",or what can be assumed to be the entire leased or owned space of the operation. While not part of the state's requirements,the city was trying to ensure the manufacturing nature of the business,where the operation is not solely focused on retail sales(retails sales referring to on-site consumption of the beverages we produce). While I agree with the general intent of the percentage limitation, it has some drawbacks that impact manufacturing businesses of our size.The growth of small brewers, cider houses,and distilleries can be directly linked to our ability not only sell at wholesale (to restaurants and package stores) but direct to the consumerfor on-site consumption. Our wholesale businesses operate with very thin margins, and this makes it difficult to compete with large scale operators.Allowing us to sell at retail does more than make our businesses healthy, it makes them viable. NOTCH AMERICAN SESSION.BEER Therefore,we are asking that the portion of our business that is so critical to our viability not be restricted in ways that put our business in jeopardy. And for some context, our neighbors in Beverly and Lynn have Farmer-Breweries operating under the Farmer Series Pouring Permit,and neither city have restrictions on tap room size or outdoor seating. 2) Economic Impact My family has been in Salem for four generations,working in tanneries,thread mills and game manufacturers.They walked to work,spent their wages in downtown business, and bought homes close to their place of employment. Manufacturing in downtown is a large part of Salem's heritage and vibrancy,and it is what makes Salem unique and attractive to businesses such as Notch. Allowing and encouraging a thriving retail component to our business is an opportunity to bring manufacturing, and the jobs we create, back to downtown Salem. Salem lost much of its manufacturing base when businesses relocated to find less costly areas to operate.The retail component of the Farmer Series Pouring Permit provides a more diverse business model that allows small manufactures to be viable in Salem. Currently, I employee three full full-time Salem residents and expect to hire 15 to 20 new employees in the next two years - manufacturing, marketing,accounting and retail jobs in downtown.This is the Salem that many of us knew,the Salem that thrived, and it is possible to revive a piece of that economic history today. I appreciate all the effort and support the city has provided us during this process, and thank you for allowing me to voice my support on the amendment. V My Chris Lohring President Notch Brewing April 18, 2016 RECEIVED Planning Board/City Council City Council Chambers f€M% 19 2016 r : is City Hall 93 Washington Street DEPT OF PLANNING & Salem, MA 01970 COMMUNITY DEVELOPMENT Dear Planning Board and City Council, We ask for your supportto amend the City of Salem Zoning Ordinance Section 10.0, Definition of a Tasting Room by deleting: "A tasting room may not be greater than 33%of the main building's gross square footage."And replacing it with a statement that is in line with the accepted standards of other tasting rooms across this state. We propose that you do not allow any restrictions on tasting room size and include the allowed use of a seasonal tasting area (i.e patio or deck). Since the initial inclusion of breweries,wineries and distilleries with a tasting room into the Salem Zoning Ordinance almost 2 years ago our cider production doubled in 2015 and is estimated to quintuple this year. We have 18 employees which 12 of them live in Salem. We proudly put the state of Massachusetts on all of our cans with a map of where our cider house is located in Salem. Please consider the amendment change so we can continue to offer a wonderful experience at our tasting room. I know our customers will enjoy their cider outside in the nicer weather. Thank you again for letting our business grow in Salem. We look forward to many successful years to come. Sincerely, Al Snape Owner,CEO Far From The Tree Cider 617.877.1270 asnape@farfromthetreecider.com Jesse Brenneman Deacon Giles Distillery 0,�19 y 75 Canal St. Cp Salem, MA 01970 /14'tfjj'y�OY�E�N April 18, 2016 FCopFf�T Dear Planning Board and City Council Members, I am writing you to express my support for the proposed change to the City of Salem Zoning Ordinance, Section 10.0, Definition of a Tasting Room. The proposed change to increase the allowable gross square footage of a tasting room from 33 percent to 50 percent is proof of the City of Salem's pro-business approach and should be passed without delay. We, as a small business, have received nothing but positive support from the city, community and residents of Salem. Proposing an increase in the allowable square footage of a tasting room reassures us of that support and can only be a boon for all local craft beverage makers. While we would not benefit directly from the change at this point in time, we believe that the indirect effects would be positive for our business. By allowing an increase in usable space for public education and experience, other local craft beverage manufacturers will be able to immediately accommodate.larger groups of patrons and tourists, visiting from both far and near. Many of those visitors are here to seek out an "experiential visit" by sampling locally made products, ultimately visiting our facility as well, often at the recommendation of the other craft business owners and their staff. Our continuing relationships with Far From the Tree Hard Cider and Notch Brewery have allowed us to cultivate the sense of a shared goal-to provide locally made, high quality, craft beverages with a story behind them and an education on how they are made. Creating a space in which we can do that is a key factor in the success of our businesses and increasing the allowable space to do so only makes our audience that much bigger and our chance of success that much greater. In conclusion, I wish to express my support for the proposed change and urge you to provide your support in passing this amendment. Salem's sense of community and pro-business approach are some of the key reasons we chose to locate our distillery in this city. This amendment is a reassurance of that support and makes us proud to say we are from Salem, MA. Sincerely, Jesse Brenneman Co-Founder Deacon Giles Distillery NOTCH AMERICAN SESSION BEER RECEIVED 4/15/15 APR 19 2016 Salem City Council &Planning Board DEPT OF PLANNING a Salem City Hall COMMUNITY DEVELOPMENT 93 Washington Street Salem, MA 01970 Dear Councilors and Board Members, Thank you for the opportunity to address the petition to amend the City of Salem's Zoning Ordinance for the Farmer Series Pouring Permit. I would like to address two key points as it pertains to the amendment, 1) necessity of retail for our business model, and 2)economic impact on Salem. First,some background on the Fanner Series Pouring Permit should be noted. On July 11, 2013,the MA legislature authorized a new type of"pouring permit'for Farmer-Breweries, Farmer-Wineries Farmer Distilleries under M.G.L. c. 138, § 19 ("Farmer Series Pouring Permit').The Farmer Series Pouring Permit is an on-premises license which allows the licensee to sell the alcoholic beverages it manufactures on its premises (and ONLY the alcoholic beverages it produces). Previously, Farmer Brewers and Farmer Wineries serving direct to the consumer for on-site consumption were licensed as pouring permits under M.G.L. c. 138,§ 12("Restaurant Pouring Permit').The Farmer Series Pouring Permit follows the same process as all retail licenses and must ensure that they are in compliance with the laws of the Commonwealth of Massachusetts, and that sales of alcoholic beverages take place only as authorized by state law. 1) Necessity of Retail When Salem addressed the zoning of the new Farmer Series Pouring Permit,a limit of 33%was made on the size of the tasting/tap room relative to the entire"main building's gross square footage", or what can be assumed to be the entire leased or owned space of the operation. While not part of the state's requirements,the city was trying to ensure the manufacturing nature of the business, where the operation is not solely focused on retail sales (retails sales referring to on-site consumption of the beverages we produce). While I agree with the general intent of the percentage limitation, it has some drawbacks that impact manufacturing businesses of our size.The growth of small brewers, cider houses,and distilleries can be directly linked to our ability not only sell at wholesale (to restaurants and package stores) but direct to the consumer for on-site consumption.Our wholesale businesses operate with very thin margins,and this makes it difficult to compete with large scale operators.Allowing us to sell at retail does more than make our businesses healthy, it makes them viable. NOTCH AMERICAN SESSION BEER Therefore,we are asking that the portion of our business that is so critical to our viability not be restricted in ways that put our business in jeopardy. And for some context, our neighbors in Beverly and Lynn have Farmer-Breweries operating under the Farmer Series Pouring Permit, and neither city have restrictions on tap room size or outdoor seating. 2) Economic Impact My family has been in Salem for four generations,working in tanneries,thread mills and game manufacturers.They walked to work,spent their wages in downtown business,and bought homes close to their place of employment. Manufacturing in downtown is a large part of Salem's heritage and vibrancy, and it is what makes Salem unique and attractive to businesses such as Notch. Allowing and encouraging a thriving retail component to our business is an opportunity to bring manufacturing, and the jobs we create, back to downtown Salem. Salem lost much of its manufacturing base when businesses relocated to find less costly areas to operate.The retail component of the Farmer Series Pouring Permit provides a more diverse business model that allows small manufactures to be viable in Salem. Currently, I employee three full full-time Salem residents and expect to hire 15 to 20 new employees in the next two years- manufacturing, marketing,accounting and retail jobs in downtown.This is the Salem that many of us knew,the Salem that thrived,and it is possible to revive a piece of that economic history today. I appreciate all the effort and support the city has provided us during this process, and thank you for allowing me to voice my support on the amendment. Chris Lohring President Notch Brewing Amanda Chiancola From: vtsdmailer@vt-s.net on behalf of kmclaughlin@7gables.org Sent: Friday, April 15, 2016 2:44 PM To: Amanda Chiancola Subject: [City of Salem MAI 4/21 public hearing comment Hello achiancola, RECEIVED Kara McLaughlin (kmclaughlin@7gables.org) has sent you a message via your contact form APR 19 2016 (http://www.salem.com/user/1186/contact) at City of Salem MA. DEPT. OF PLANNING & COMMUNITY DEVELOPMENT If you don't want to receive such e-mails, you can change your settings at http://www.salem.com/user/1186/edit. Message: Hi Amanda, I will be unable to attend the Planning Board Meeting on the 21st. But I wanted to express support for 114 Derby Street Nominee Trust's site plan review and their proposal to convert the existing structure to 6 residential units.As you may know,The House of the Seven Gables Settlement Association currently owns the property, but are under agreement to sell it to the 114 Derby Street Nominee Trust.As the building is situated directly across from our National Historic Landmark Campus, we have an interest in seeing the site developed in way that will complement the character and nature of the neighborhood. Would you kindly share with the Planning Board that The House of the Seven Gables has seen their plans and is in in favor of their proposal. Please let me know if you have any questions. Thank you, Kara McLaughlin Executive Director The House of the Seven Gables Settlement Association i April 18, 2016 RECEIVE ® Planning Board/City Council City Council Chambers APR 19 2016 City Hall 93 Washington Street DEPT. OF PLANNING & Salem, MA 01970 COMMUNITY DEVELOPMENT Dear Planning Board and City Council, We ask for your support to amend the City of Salem Zoning Ordinance Section 10.0, Definition of a Tasting Room by deleting: "A tasting room may not be greater than 33%of the main building's gross square footage."And replacing it with a statement that is in line with the accepted standards of other tasting rooms across this state. We propose that you do not allow any restrictions on tasting room size and include the allowed use of a seasonal tasting area (Le patio or deck). Since the initial inclusion of breweries,wineries and distilleries with a tasting room into the Salem Zoning Ordinance almost 2 years ago our cider production doubled in 2015 and is estimated to quintuple this year. We have 18 employees which 12 of them live in Salem.We proudly put the state of Massachusetts on all of our cans with a map of where our cider house is located in Salem. Please consider the amendment change so we can continue to offer a wonderful experience at our tasting room. I know our customers will enjoy their cider outside in the nicer weather. Thank you again for letting our business grow in Salem. We look forward to many successful years to come. Sincerely, AlSnape Owner, CEO Far From The Tree Cider 617.877.1270 asnape@farfromthetreecider.com Jesse Brenneman APR Deacon Giles Distillery �P Salem,VIA75 Canal t01970 O®M�UH O ��19 April 18, 2016 FNp Dear Planning Board and City Council Members, I am writing you to express my support for the proposed change to the City of Salem Zoning Ordinance, Section 10.0, Definition of a Tasting Room. The proposed change to increase the allowable gross square footage of a tasting room from 33 percent to 50 percent is proof of the City of Salem's pro-business approach and should be passed without delay. We, as a small business, have received nothing but positive support from the city, community and residents of Salem. Proposing an increase in the allowable square footage of a tasting room reassures us of that support and can only be a boon for all local craft beverage makers. While we would not benefit directly from the change at this point in time, we believe that the indirect effects would be positive for our business. By allowing an increase in usable space for public education and experience, other local craft beverage manufacturers will be able to immediately accommodate larger groups of patrons and tourists, visiting from both far and near. Many of those visitors are here to seek out an "experiential visit" by sampling locally made products, ultimately visiting our facility as well, often at the recommendation of the other craft business owners and their staff. Our continuing relationships with Far From the Tree Hard Cider and Notch Brewery have allowed us to cultivate the sense of a shared goal-to provide locally made, high quality, craft beverages with a story behind them and an education on how they are made. Creating a space in which we can do that is a key factor in the success of our businesses and increasing the allowable space to do so only makes our audience that much bigger and our chance of success that much greater. In conclusion, I wish to express my support for the proposed change and urge you to provide your support in passing this amendment. Salem's sense of community and pro-business approach are some of the key reasons we chose to locate our distillery in this city. This amendment is a reassurance of that support and makes us proud to say we are from Salem, MA. Sincerely, Jesse Brenneman Co-Founder Deacon Giles Distillery