HomeMy WebLinkAboutWS Item 03 - Wine and Beer Retailer's PermitMEMO TO: HONORABLE MAYOR, CITY COUNCIL MEMBERS
FROM: BRUNO RUMBELOW, CITY MANAGER
SCOTT WILLIAMS, DEVELOPMENT SERVICES DIRECTOR
MEETING DATE: DECEMBER 3, 2013
WORKSHOP—WINE - RETAILER'S PERMIT
RECOMMENDATION:
City Council to consider an amendment to Section 42, Supplementary District Regulations
of the zoning ordinance, and to Chapter 4, Alcoholic Beverages of the Code of Ordinances
relative to the Wine and Beer Retailer's Permit (BG permit), and take any necessary action.
The City's Local Option Elections in 1973 and 1993 relative to the sale and consumption of
alcoholic beverages currently allows:
The legal sale of beer and /or wine for off - premise consumption
The legal sale of beer, wine, and mixed beverages for on- premise consumption
Section 42, Supplementary District Regulations of the zoning ordinance and Chapter 4,
Alcoholic Beverages of the Code of Ordinances also requires holders of a mixed beverage
permit or private club permit to have at least 50% of their gross sales derived from food.
During the last Texas legislative session (83rd Legislature) the Texas Alcoholic Beverage
Commission Code relative to Chapter 25, Wine and Beer Retailer's Permit (BG permit) was
amended as part of House Bill 2818. Although this permit has been in existence for some
time, the specific amendment authorizes cities to consider this permit, if the legal sale of
beer and wine for off - premise consumption and the legal sale of mixed beverages for on-
premise consumption has been previously authorized, without going through the time and
expense to hold another local option election. Specifically this BG permit allows for both
on- and off - premise consumption of beer and wine and relative to the City of Grapevine,
requires the holder of a BG permit that operates within a restaurant to meet the regulations
that are currently in place for on- premise alcohol beverage consumption.
Gina Puente, the owner /operator of La Buena Vida Vineyard (416 East College Street) has
recently surrendered her state issued winery permit and initially was proposing to transition
the property from a winery to a full- service restaurant with on- premise alcohol beverage
sales limited to wine only. This approach however would not allow for off - premise sales of
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wine. With the recent amendment previously mentioned to the Texas Alcoholic Beverage
Commission Code relative to the Wine and Beer Retailer's Permit, Ms. Puente would like
to pursue the BG permit since it will allow her to operate in a fashion as if she were still a
winery, with both on- and off - premise consumption of beer and wine only but with the
additional stipulation that fifty (50) percent of the gross sales from the business must be
derived from food.
If there is a desire by Council to make the BG permit accessible to existing and future
restaurant operators then Section 42, Supplementary District Regulations of the zoning
ordinance and Chapter 4, Alcoholic Beverages of the Code of Ordinances must be
amended to authorize use of this permit. Staff has proposed some specific amendments
to both (see attached) that will allow the city council through the conditional use process
the ability to authorize this permit.
Besides Ms. Puente, Gary Farina of Farina's Winery and several other restaurant operators
have inquired about pursuing this permit. In addition, the city attorney has confirmed with
TABC that holders of the BG permit can utilize the word "winery" or any of its derivatives in
their business name and if necessary this can be made a specific part of zoning approval.
/rs
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B. SALE OF ALCOHOLIC BEVERAGES:
Notwithstanding any other provision of this Ordinance the storage,
possession, sale, serving, or consumption of alcoholic beverages, except for
the consumption of the occupants or owners of the premises and their
guests at no charge, when permitted by the laws of the State of Texas, shall
be regulated and governed by the following use regulations and
requirements:
DEFINITIONS: For the purpose of this Ordinance, the following words and
phrases shall have the meanings ascribed to them as follows:
(a) ALCOHOLIC BEVERAGE means alcohol, or any beverage containing
more than one -half of one percent of alcohol by volume, which is
capable of use for beverage purposes, either alone or when diluted.
(b) RESTAURANT shall mean a restaurant or eating establishment
whose gross sales in Grapevine from food on an annual basis at the
location represent at least fifty (50) percent of total sales with a
Conditional Use as set out in Section 48.
2. The storage, possession, sale or serving of alcoholic beverages by any party
for either on- premise or off - premise consumption, shall be illegal unless on
property zoned specifically for that purpose as a Conditional Use in
accordance with and pursuant to Section 48 of this Ordinance.
3. With the exception of wineries and wine tasting rooms, no party shall sell
or serve alcoholic beverages for on- premise consumption as the holder of a
duly issued Texas Alcohol Beverage Commission permit allowing on-
premise consumption except in a
restaurant or on the premises of an entity whose principal business is
transporting of the general public and is operating pursuant to a certificate of
public convenience and necessity issued by a federal or state regulatory
body with a Conditional Use Permit in accordance with and pursuant to
Section 48.
4. The party or entity operating a restaurant or private club that permits the sale
of alcoholic beverages for on- premise consumption shall on an annual basis,
no later than the thirtieth day of the month following each twelve (12) months
of operation, file with the City Secretary an affidavit, on an officially approved
form provided by the City Secretary, that reflects gross sales for the
preceding twelve (12) months breaking down the sales of food, alcoholic
O:ZCU /AM13- 06 /SEC42
beverages and other items. The party shall also file on an annual basis; at
the same time the affidavit is filed, a copy of the filing supplied to the State of
Texas for sales tax and alcoholic beverage tax purposes.
5. A Certificate of Occupancy shall be issued by the City's Building Inspection
Department at such time as the party complies with all aspects of this Zoning
Ordinance and all other applicable Ordinances. No Certificate of Occupancy
may be assigned or transferred and same is valid only as to the recipient.
No party may operate a restaurant or private club that is zoned pursuant to
Section 42.13 and 49 of this Ordinance without a valid and current Certificate
of Occupancy.
6. (a) The City's Building Official, upon receipt of information from the City
Secretary that the holder of a Certificate of Occupancy under Section
42.13 of this Ordinance has failed to comply with one or more of the
requirements, may cancel and terminate the party's Certificate of
Occupancy by giving the party written notice that specifies the
violation.
The notice requirement from the City shall be satisfied by placing said
notice in the United States mail addressed to the last address
provided in the City by the entity or party that holds a Certificate of
Occupancy. The notice from the City shall state that the Certificate of
Occupancy shall be canceled unless the party or entity corrects the
violation within thirty (30) days of receipt of the notice except as
hereinafter set out. However, a party or entity that submits an annual
report pursuant to Section 42.13.4. that does not satisfy the fifty (50)
percent requirement relating to food sales shall have the alternative of
filing monthly reports for a period of six (6) months. The monthly
reports shall contain the same information and be in the same form as
the annual reports except that said monthly reports shall reflect an
accumulation of total sales for the preceding twelve -month period
reflected in the annual report added to the monthly sales.
(b) The party or entity submitting the monthly reports shall be deemed to
have satisfied the Section 42.13. requirements if the monthly reports
on or before the final sixth month reports filing show total sales from
food to be at least fifty (50) percent of total sales.
(c) Failure to file the monthly reports or failure to satisfy the food sales
requirements by the end of the six -month period shall result in
cancellation of the certificate of occupancy without the necessity of
further notice.
O:ZCU /AM 13- 06 /SEC42
On • off premise • a beverage consumption Moxed beverage and
private GlUb permit hoklef.
No individual or entity shall sell or serve alcoholic beverages for on- premises or off-
premises consumption as holder of a duly issued Texas Alcohol Beverage
Commission permit allowing on- premise consumption mixed beyeFage per
sepaFately or holder of a mixed beverage peFmit and a brew pub permi , except in a
restaurant, cafe, cafeteria or eating establishment or on the premises of an individual or
entity whose principal business is transporting of the general public and is operating
pursuant to a certificate of public convenience and necessity issued by a federal or state
regulatory body.
"Restaurant, cafe, cafeteria or eating establishment" is herein defined as a business
whose gross sales from food on an annual basis represent at least 50 percent of its total
sales.
All holders of private club permits shall conduct their business in a manner that
produces gross revenues on an annual basis from the sale of food that at least equals
the gross revenues produced from the serving of alcoholic beverages. This paragraph
shall not apply to any fraternal and veterans organizations legally operating as the
holder of a private club permit prior to the effective date of Ordinance No. 85 -32 and
shall not apply to the Benevolent and Protective Order of Elks Lodge No. 2483
operating or intending to operate a private club located or to be located at 224 North
Main Street, Grapevine, Texas, providing that the Benevolent and Protective Order of
Elks Lodge No. 2483 shall obtain all necessary permits required to operate such a
private club and that the operation of such private club has commenced on or before
October 18, 1986.
The party or entity operating the business shall, on an annual basis, file with the city
secretary an affidavit showing gross receipts and sales of the business. The affidavit
shall contain a breakdown between the gross food sales of food and the gross sales of
alcoholic beverages. The party or entity shall also file with the city secretary on an
annual basis, the gross receipts and figures furnished to the state for sales tax and
alcoholic beverage tax purposes. This provision applies to both restaurant, cafe,
cafeteria or eating establishment and to permittee of a federal or state agency.
O:ZCU /AM 13 -06 /Chapter 4