7 January 14, 2015 Public Hearing

Transcription

1 7 January 14, 2015 Public Hearing APPLICANT: CHESAPEAKE BAY DISTILLERY, LLC PROPERTY OWNER: HOTLINE ENTERPRISES, LLC REQUEST: Conditional Use Permit (Craft Distillery) STAFF PLANNER: Graham Owen ADDRESS / DESCRIPTION: 437 Virginia Beach Boulevard GPIN: ELECTION DISTRICT: BEACH SITE SIZE: 14,000 square feet AICUZ: db DNL (Sub-Area 1) BACKGROUND / DETAILS OF PROPOSAL Background The applicant requests a Conditional Use Permit to operate a craft distillery from the former Hotline Surfboards building at the southeast corner of Virginia Beach Boulevard and Arctic Avenue. The applicant proposes to use the existing building and renovate the interior to create separate production and retail spaces. The applicant would sell distilled spirits produced at the distillery for off-premises consumption, and would also conduct controlled tasting events on the premises. The ability of the applicant to apply for this Use Permit is dependent on a proposed amendment to the City Zoning Ordinance authorizing craft distilleries as a conditional use in the OR Oceanfront Resort District, as well as the B-2 Community Business District, B-3 Central Business District, B4-C Central Business Mixed Use District, and the I-1 Industrial District. That amendment will be heard at the same public hearing as this Use Permit request, and the amendment must be approved prior to this Use Permit request being acted on. Page 1

2 Distillery stores are defined by the Department of Alcoholic Beverage Control as government stores located on a distiller s premises, operated by the distiller as agent for the Department for the purpose of selling distilled spirits. As such, distillery stores are operated as distiller-specific ABC stores, and must adhere to strict requirements for store operations, record-keeping, employee training, advertising, and inspections. Subsection G of also authorizes distillery licensees to conduct organized tasting events, wherein customers may consume up to three, one-half ounce samples per tasting event per day. The licensee is responsible for ensuring that customers adhere to this one customer tasting per day policy. ABC regulations prohibit the distillery store licensee from selling spirits to other ABC licensees, and thus the licensee cannot sell their product to bars or restaurants. Also, only spirits distilled on the licensed premises may be sold at the store. This requirement contrasts with more flexible state regulations for craft breweries, which allow brewers to sell beer in their tasting rooms that is physically manufactured off-site through license agreements with other firms. Application Details Chesapeake Bay Distillery was founded in 2005 and currently operates a distilling facility in Virginia Beach at 2669 Production Road. The applicant has outgrown the current site, and desires to increase the production space by adding a second location at the subject site. Also, as their current location is in an industrial park with minimal traffic, the applicant desires to develop a retail shop within the existing building at the subject site to attract customers and increase brand awareness. Craft distilleries are defined in the proposed text amendment to the City Zoning Ordinance as the following: A facility that produces and distributes spirits, as defined in the Alcoholic Beverage Control Act, in quantities not exceeding five thousand barrels (5,000 BBL) per year and at which such spirits produced at such facility are served to customers for on-premises or off-premises consumption. The production limit of 5,000 barrels per year is similar to zoning regulations adopted by other localities in the Commonwealth for craft and micro distilleries. In addition, the ABC Board has a license fee schedule based on annual production, with licensees producing less than 5,000 barrels per year paying a reduced fee. Site Plan and Building The site consists of two adjacent 50 by 140 recorded parcels, which together constitute a 14,000 square foot (1/3 acre) lot. The existing structure is a one-story building with a onehalf-story mezzanine, and until recently, housed Hotline Surfboards. City records indicate that the building was constructed in The building is situated at the northeast corner of the lot, and is set back approximately 5 feet from the right-of-way along Virginia Beach Boulevard and 10 feet from the right-ofway along Baltic Avenue. The building exterior is wrapped with shingles, and has a peaked mansard roof with two levels of slope. The lower and shallower slope of the roof is punctuated by a dormer window system, which provides light in the mezzanine. With the exception of a new overhead door on the southern façade and a new vent near the peak of the roof on the northern facade, no structural changes to the exterior are proposed. The applicant proposes to remove interior portions of the mezzanine in order to increase the height of the first floor ceiling and accommodate distilling equipment. The interior would be renovated to create separate rooms for distilling and retail sales. The production space would encompass 3,370 square feet, or 75 percent of the total building area. The retail store would be 500 square feet, and the remaining mezzanine would be 650 square feet. Access, Circulation, and Parking Vehicles enter the site via curb cuts along Baltic Avenue and Virginia Beach Boulevard. The site currently has 19 vehicle parking spaces on the eastern and southern sides. One of these parking spaces would be used for a screened recycling dumpster. Pedestrians would access the site from the sidewalk along Virginia Beach Boulevard. Page 2

3 Landscaping The site currently contains a mixture of evergreen shrubs, palm trees, and tall ornamental grasses along the western and northern building façades. In addition, an existing row of five-foot shrubs and a six-foot privacy fence provide screening along the southern property line. Except for a row of foundation shrubs to screen the proposed dumpster, no additional landscaping is included with this application. Hours of Operation ABC Board regulations for distillery stores limit the hours of operation to Monday through Saturday, 10 a.m. to 10 p.m. and Sunday, 1 p.m. to 6 p.m. In addition, the store must be closed on Thanksgiving Day, Christmas Day, and New Years Day. LAND USE AND COMPREHENSIVE PLAN EXISTING LAND USE: Commercial retail building and associated parking and landscaping SURROUNDING LAND USE AND ZONING: North: Virginia Beach Boulevard Commercial retail / OR Oceanfront Resort District South: Residential dwellings / A-12 Apartment District East: Automobile Repair / OR Oceanfront Resort District West: Baltic Avenue Vacant commercial retail (recently granted a Use Permit for an eating and drinking establishment) / OR Oceanfront Resort District NATURAL RESOURCE AND CULTURAL FEATURES: The site is located in the Owls Creek Watershed. There do not appear to be any natural or cultural features of significance on the site. COMPREHENSIVE PLAN: The Comprehensive Plan designates this area of the City as Urban Area - Strategic Growth Area 8, Resort Area. The Resort Area is recognized as an area where revitalization efforts have and continue to transform the Resort Area into a major activity center, with strengthened neighborhoods and increased economic growth (p. 2-28, Policy Document). Further, the site is located within the Central Beach District of the Resort Area Strategic Action Plan (RASAP), which is evolving into an arts district. IMPACT ON CITY SERVICES MASTER TRANSPORTATION PLAN (MTP) / CAPITAL IMPROVEMENT PROGRAM (CIP): Virginia Beach Boulevard at this location is a four-lane undivided minor urban arterial. Virginia Beach Boulevard has a variable width right-of-way. The right-of-way width is 75 feet at this location. The Master Transportation Plan shows a four-lane road with a 100-foot right-of-way width and a shared-use path. There are currently no CIP projects for Virginia Beach Boulevard at this location. Baltic Avenue in the vicinity of this site is a two lane collector. Baltic Avenue has a 60-foot wide right-of-way. Baltic Avenue is Page 3

4 not included in the Master Transportation Plan. There are no CIP projects for Baltic Avenue at this location. TRAFFIC: Street Name Virginia Beach Boulevard Baltic Ave Present Volume Present Capacity Generated Traffic 9,930 ADT 1 14,800 ADT 1 (LOS 4 C ) 27,400 ADT 1 (LOS 4 E ) No counts available 6,200 ADT 1 (LOS 4 C ) 11,100 ADT 1 (LOS 4 E ) Existing Land Use ADT Proposed Land Use ADT 1 Average Daily Trips 2 as defined by 4,520 SF Specialty Retail Center 3 as defined by 3,370 SF General Light Industrial + 1,050 SF Specialty Retail Center 4 LOS = Level of Service WATER AND SEWER: This site is currently connected to the City water and sewer system. The existing 5/8-inch meter (City ID # ) can be used or upgraded to accommodate the proposed development. Analysis of the HRSD 29 th Street Pump Station and the sewer collection system is required to ensure future flows can be accommodated. EVALUATION AND RECOMMENDATION The site is located within the Central Beach portion of the Resort Strategic Growth Area (SGA), which is one of the City s eight Strategic Growth Areas. Projects within the Resort SGA are evaluated for consistency with the Resort Area Strategic Action Plan (RASAP), which guides the pattern of future land uses in the Oceanfront. The RASAP identifies the following development strategies that are relevant to this application: Create great districts with distinctive identities; concentrate retail The site is located within the Central Beach portion of the Resort SGA, which is evolving into an arts district. A small-scale distillery would complement the recently approved restaurant immediately across Baltic Avenue from the site, which will specialize in craft beer. Also, the site is seven blocks away from a microbrewery on Norfolk Avenue. Thus, the Central Beach and surrounding area are arguably developing a fledgling craft beverage core that contributes to a distinct, district-level identity. Continue to focus on achieving a Year-Round Resort The applicant has stated that the distillery and shop will be open year-round, with extended store hours during the summer months. Create a transition from the Resort Area to the neighborhoods A craft distillery and its associated ABC store are low intensity uses, and the proposed hours of operation are more limited than those normally associated with establishments holding a mixed beverage license, such as a bar or restaurant. For example, the Conditional Use Permit authorizing the eating and drinking establishment immediately across Baltic Avenue from the subject site limited the hours of operation to Sunday Page 4

5 through Thursday, 11:00 a.m. to 12:00 a.m. and Friday through Saturday, 11:00 a.m. to 2:00 a.m. By contrast, the distillery is only authorized by ABC to remain open Monday through Saturday, 10 a.m. to 10 p.m. and Sunday, 1 p.m. to 6 p.m. Summary The site is located approximately 43 feet from an A-12 Apartment District, which the Oceanfront Resort District Form-Based Code designates as a Protected District. Thus, the applicant has diligently worked with the Resort Beach Civic League to address concerns regarding the appropriateness of the site for the proposed use. The Civic League voted to support the application with a list of recommended conditions, which have been included on Page 7 of this report. These conditions differ slightly from Staff s recommended conditions, as Staff, in its drafting of conditions, must ensure that the conditions are consistent with the Zoning Ordinance and Comprehensive Plan, are directly related to the requested use, and can be reasonably enforced by the Zoning Administrator and Staff. Staff finds that the proposed craft distillery is acceptable. The ABC Board limits the hours of operation for distillery stores, and the amendment to the Zoning Ordinance for Craft Distilleries would incorporate by reference the conditions of the applicant s ABC Board license into the Conditional Use Permit. The Zoning Ordinance amendment also limits live music to the interior of the building. As an additional measure to ensure compatibility with the adjacent neighborhood, Staff has recommended conditions requiring maintenance or replacement of the existing fence and landscaping along the southern lot line that is shared with the Protected District in order to ensure a physical buffer from the adjacent neighborhood. This use will blend well with other new uses in this area of the Resort SGA and will contribute to the level and type of activity envisioned by the SGA Plan for the Resort. A currently vacant building will be brought to life through this creative use. Given these considerations, Staff recommends approval of this request with the conditions below. CONDITIONS 1. The site shall be developed in substantial conformance with the plan entitled Chesapeake Bay Distillery LLC, and dated 12/29/2014, which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning. 2. A sign package shall be submitted to the Planning Director for review and approval before any sign permit is issued. All signage on site shall comply with the sign standards in Section 6.3 of the Oceanfront Resort District Form-Based Code. 3. Delivery trucks shall not encroach into the public right-of-way while parked on-site. 4. The existing fence and landscaping along the eastern and southern property lines shall be maintained in good condition or replaced with Category VI landscaping in accordance with the City of Virginia Beach Landscaping Guide. 5. Any dumpsters on site shall be screened and landscaped in accordance with the Landscaping Guide. Page 5

6 6. The existing street front landscaping on the site shall be maintained in good condition or replaced in accordance with the Landscaping Guide. 7. The hours of operation for the retail store shall be Monday through Saturday, 10 a.m. to 7 p.m. and Sunday, 1 p.m. to 6 p.m., or as further limited by any relevant license granted by the Virginia Alcoholic Beverage Control Board. 8. There shall be no live or recorded outdoor entertainment. 9. The shopfront windows on the northern façade shall allow views into the ground story for a depth of at least 6 feet. 10. The business shall not participate in the Residential Permit Parking Program (RPPP). NOTE: Further conditions may be required during the administration of applicable City Ordinances and Standards. Any site plan submitted with this application may require revision during detailed site plan review to meet all applicable City Codes and Standards. All applicable permits required by the City Code, including those administered by the Department of Planning / Development Services Center and Department of Planning / Permits and Inspections Division, and the issuance of a Certificate of Occupancy, are required before any uses allowed by this Use Permit are valid. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. Page 6

7 CONDITIONS REQUESTED BY RESORT BEACH CIVIC LEAGUE Page 7

8 AERIAL OF SITE LOCATION Page 8

9 PROPOSED SITE PLAN Page 9

10 MAIN ENTRANCE (EAST ELEVATION) Page 10

11 NORTH ELEVATION (FACING VIRGINIA BEACH BLVD) Page 11

12 WEST ELEVATION (FACING BALTIC AVENUE) Page 12

13 ZONING HISTORY # DATE REQUEST ACTION 1 10/07/ /13/2010 Conditional Use Permit (Eating and Drinking Establishment within 100 feet of a protected district) Conditional Use Permit (Small Engine Repair) Approved Approved 2 05/08/ /08/2006 Change to a Nonconforming Use Change to a Nonconforming Use Approved Approved 3 12/07/2010 Conditional Use Permit (Automobile Museum) Approved 4 10/08/2002 Change to a Nonconforming Use Denied 5 04/28/1992 Change to a Nonconforming Use Approved Page 13

14 DISCLOSURE STATEMENT Page 14

15 DISCLOSURE STATEMENT Page 15

16 FINANCIAL DISCLOSURE STATEMENT What financial institution(s) [bank, credit union, mortgage company, etc.] is or will have a financial interest in this project? Source of financing for sale/lease or purchase of property: (Bank) Proposed: Southern Bank and Trust but still searching for the best deal Real Estate Broker Mike Roach, Dynamic Realty Lienholder / Collateral on the property: Proposed Southern Bank Source of financing for project: Private equity and current operation If there have been any discussions with a financial institution with regarding to loans to be secured to finance any aspect of this project, please provide the name of those institutions: Southern Bank and Trust, Wells Fargo, Bank of America, Fulton Bank, Towne Bank Contract Purchaser: Chesapeake Bay Distillery Ongoing relationship with any financial institution: Southern Bank and Trust, Wells Fargo Page 16