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HomeMy WebLinkAboutCU2012-49TT "'F AX- A_rS �r PART 1. APPLI, Applicant Name Humble Applicant Address: 11916 Longhorn Trail City/State/Zip 1Grapevine, TX 76051 CITY OFGRAPEVINE CONDITIONAL USE APPLICATION Phone No. 1214-708-8091 Fax No. Email Address Igary grapevineontap.com Mobile Phone Applicant's interest in subject property Luse for production microbrewery PART 2. PROPERTY INFORMATION Street Address of subject property 1924 Jean Street Legal Description: Lot i ' Block Addition Slagle Addition Legal description of subject property (metes & bounds must be described on 8 1/2" x 11" sheet Size of subject property: acres .62 square footage 27,288 Present zoning classification FLight Industrial District Proposed use of property manufacturing, wholesale, distribution, alcoholic beverages Zoning ordinance provision requiring a conditional uselmicrobrewery use and public brewery tours PART 3. PROPERTY OWNER INFORMATION Property Owner (Grapevine Craft Brewery, LLC Prop Owner Address 12150 W Northwest Hwy STE 114-1094 City/State/Zip 1Grapevine, TX 76051 Phone No. ;682-651-5797 Fax No. Form "A" ❑ Submit a letter describing the proposed conditional use and note the request on the site plan document ❑ In the same letter, describe or show on the site plan, and conditional requirements or conditions imposed upon the particular conditional use by applicable district regulations (example: buffer yards, distance between users) Cl In the same letter, describe whether the proposed conditional use will, or will not cause substantial harm alr f other property in the neighborhood. Also, describe how the proposed conditional use will add to the valu Ur Coi4i t o erty in the neighborhood. Ll Application of site plan approval (Section 47, see attached Form `B'). DEC 3 2 z r_1 The site plan submission shall meet the requirements of Section 47, Site Plan Requirements. ca c a 49 ❑ All conditional `use and conditional use applications are assumed to be complete when filed and will be placed on the agenda for public hearing at the discretion of the staff. Based on the size of the agenda, your application may be scheduled to a later date. ❑ All public hearings will be opened and testimony given by applicants and interested citizenry. Public hearings may be continued to the next public hearing. Public hearings will not be tabled. ❑ Any changes to a site plan (no matter how minor or major) approved with a conditional use or conditional use permit can only be approved by city council through the public hearing process. ❑ I have read and understand all the requirements as set forth by the application for conditional use or conditional use permit and acknowledge that all requirements of this application have been met at the time of submittal. PART 4. SIGNATURE TO AUTHORIZE CONDITIONAL USE REQUEST AND PLACE A CONDITIONAL USE REQUEST SIGN ON THE SUBJECT PROPERTY Gary Humble Print Applicant's Name The State of T� I (:�J� V L Applicant's'Signature County of 17 Before me (notary) on this day personally appeared (applicant) 0.Y known to me (or proved to me on the oath of card or other document) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. (Seal) Given under my hand and seal of office this 3� day of�CQjp ,QY- , A.D. I a 0 k 5, RM NSARIblicEXAS Exp. 10-02-14 Grapevine Craft Brewery, LLC Print Property Owner's Name The State of 1 Notary In and For State of I - Property diner's Signature County of Before me (notary)Q on this day personally appeared (applicant) s� � _ _��, i G0. known to me (or proved to me on the oath of card or other document) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. (Seal) Given under my hand and seal of office this day of 4e�Q-" Q.A A.D. �Q MSTATEOFTEXAS �,,, ISNotary In and For State of 2-14 DEC 3 2012 �T —E '%A X A S c PART 1. APPLICANT INFORMATION Applicant Name: lGary Humble Applicant Address: 11916 Longhorn Trail City/State/Zip JGrapevine, TX 76051 Phone No. 1214-708-8091 Fax No. CITY OFGRAPEVINE Email Address jgary grapevineontap.com Mobile Phone Applicant's interest in subject property fuse for production microbrewery PART 2. PROPERTY INFORMATION SITE PLAN APPLICATION Form "B" Street Address of subject property 1924 Jean Street Legal Description: Lot Block Addition Slagle Addition Legal description of subject property (metes & bounds must be described on 8 1/2" x 11" sheet Size of subject property: acres.62 Present zoning classification ILI Light Industrial District Proposed use of property (manufacturing, wholesale, distribution, alcoholic beverages Zoning ordinance provision requiring a conditional use�micro brewery use and public brewery tours PART 3. PROPERTY OWNER INFORMATION Property Owner JGrapevine Craft Brewery, LLC Prop Owner Address 12150 W Northwest Hwy STE 114-1094 City/State/Zip JGrapevine, TX 76051 Phone No. 1682-651-5797 Fax No. DEC 3 2012 IU ❑ Attach a firial plat, or replat, of the approved subdivision by city council showing property boundary lines, dimensions, easements, roadways, rail lines, and public rights -of way crossing and adjacent to the tract ( 9 blueline copy) ❑ If a master development plan is required, attach a statement showing the proposed use substantially conforms to the master development plan. ❑ Submit a site plan showing all information required by Section 47.E., Site Plan review requirements (see attached requirements). ❑ Provide all required information demonstrating compliance with all conditions imposed on any conditional use, site plan zoning, or conditional use zoning. ❑ All site plans must conform to the approved concept plan. Any changes to a site plan, approved with a conditional use or a conditional use, can only be approved by city council through the public hearing process. PART 4. SIGNATURE TO AUTHORIZE FILING OF A SITE PLAN Gary Humble Print Applicant's Name The State of County of Applicant's nature Before me (notary) ��� �,on this day personally appeared (applicant)v �\ � known to me (or proved o me on the oath of card or other document) to be the person whose name is subsdribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. (Seal) Given under my hand and seal of offic this day of �C��,�pQ,r , A.D. AYESHA ANSARI Notary Public STATE OF TEXAS of My Comm. Exp. 10-02-14 Grapevine Craft Brewery, LLC Print Property Owner's Name The State of Notary In and For State of Property Own is Signature County of \ Before me (notary) I on this day personally appeared (applicant)a�� known to me (or proved o me on the oath of card or other document) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. (Seal) Given under my hand and seal of office this[ �day of _be._cQ."eX_ , A.D. F ANSARI[e=xp. PublicF TEXAS Notary In nd For State of 10-02-14 DEC 3 2012 ILLUMINATION PLAN ((,Q 1--� -LG An illumination plan to include a site photometric (including illuminated signs) and all fixture details shall be submitted as part of the site plan review process. Applications will not be accepted without this requirement. I hereby acknowledge that an illumination plan has been included as a part of this submittal. Signature of Applicant Date Signature of Property Owner Date v �l DEC 3 2012 IU PLATTING VERIFICATION This verification statement must be signed prior To the submittal of this conditional use application CU I0-�qi It has been determined that the property described below does require platting or replatting and the applicant has been instructed on this procedure. X It has been determined that the property described below is currently platted or does not require platting or replatting at this time. Address of subject property 924 Jean St, Grapevine, TX 76051 Legal description of subject property Block 1, Lot 1 Slagle Addition In blic Works Department Date z This form must be signed by the public works department and submitted along with a completed application to the planning and zoning department DEC 3 2012 D 8 ACKNOWLEDGEMENT Cta-49 All Conditional Use and Special Use Applications are assumed to be complete when filed and will be placed on the agenda for public hearing at the discretion of the staff. Based on the size of the agenda, your application may be scheduled to a later date. All public hearings will be opened and testimony given by applicants and interested citizenry. Public hearings may be continued to the next public hearing. Public hearings will not be tabled. Any changes to a site plan (no matter how minor or major) approved with a conditional use or a special use permit can only be approved by city council through the public hearing process. Any application for a change in zoning or for an amendment to the zoning ordinance shall have, from the date of submittal, a period of four months to request and be scheduled on an agenda before the Planning and Zoning Commission and City Council. If after said period of four months an application has not been scheduled before the Commission and Council said application shall be considered withdrawn, with forfeiture of all filing fees. The application, along with the required filing fee may be resubmitted any time thereafter for reconsideration. Delays in scheduling applications before the Planning and Zoning Commission and City Council created by city staff shall not be considered a part of the four month period. I have read and understand all of the requirements as set forth by the application for conditional use or special use permit and acknowledge that all requirements of this application have been met at the time of submittal. Signature of Applicant Date Signature of Property Owner; Date DEC 3 2012 IGU -TR 65c- 1.8986 @ 2 5 Ll CC TR 65 7.5944 PG v P PRS 1 71 1 TR 29 1.24 MXU Ac 1 @ 5 4 PO A 3 E SLP 3 -I! GU 0 1 inch = 200 feet � "WWWMO! RM ?10pry1 R 1 P66 3 3'1 `O 1.354 O 9� 1.953 @ ° ° SpN 1 PRIVATE DR PR N 1 2.6440- 2 p 1.468 @ Q � p,D TR DALLA D2 TR N 33A p.�QB� NpN TR :1 P A� .::�4 :. _ N�LL'COaW 0 2 NO M & 1R 1R1 �, 2 6A 6B 1 2�5 P 7A 7B 1$�ao 8 8 www RPp�+ P P� \&ckf 1 TR 1H GpM6 r� 1 R 1 Y CU 12-49 Grapevine Craft Brewery bT _EAX A -S December 28, 2012 Ms. Christine Lopez Fort Worth Star Telegram P.O. Box 1870 Fort Worth, Texas 76102 RE: Grapevine Account # CIT 25 Dear Ms. Lopez, W I a -z-[9 VIAFACSIMILE 817-390-7361 817-390-7520 Please find enclosed the following for publication on Sunday, December 30, 2012, in the Northeast Edition of the Neighborhood Extra Section of the Fort Worth Star Telegram. (One time only) Item Notice of Public Hearing CU12-41 - 7 -Eleven Notice of Public Hearing CU12-48 - 7 -Eleven / Starbucks Notice of Public Hearing CU12-49 — Grapevine Craft Brewery Notice of Public Hearing CU12-51 — Pizza Snob Notice of Public Hearing SU12-05 — Oncor Substation Meeting Date January 15, 2013 January 15, 2013 January 15, 2013 January 15, 2013 January 15, 2013 As always, your assistance is greatly appreciated. If you have any questions please contact me at (817) 410-3155. Sincerely, Albert L. Triplett, Jr. Planner II DEVELOPMENT SERVICES DEPARTMENT The City of Grapevine • P.O. Box 95104 rapevine, Texas 76099 • (817) 410-3154 Fax (817) 410-3018 • www.grapevinetexas.gov CITY OF GRAPEVINE, TEXAS On Tuesday evening, January 15, 2013 at 7:30 P.M. in the City Council Chambers, 2nd Floor, 200 South Main Street, Grapevine, Texas, the City Council and Planning and Zoning Commission of the City of Grapevine will hold a public hearing to consider the following items: CU12-41 — 7 - Eleven - submitted by Brian Nebel for property located at 1700 State Highway 26 and proposed to be platted as Lot 2R1, Block 1, Grapevine Mills Addition, Phase 2. The applicant is requesting a conditional use permit to allow the possession, storage, retail sale and off -premise consumption of alcoholic beverages (beer and wine only) and gasoline services in conjunction with a convenience store. The property is currently zoned "CC" Community Commercial District and is owned by Florida Bethel. CU12-48 - 7- Eleven / Starbucks - submitted by M J Thomas Engineering LLC for property located at 3121 & 3125 Ira E. Woods Avenue and proposed to be platted as Lot 1 R, Block 1, Mustang Plaza. The applicant is requesting a conditional use permit to allow a 20 foot pole sign and the possession, storage, retail sales and off -premise consumption of alcoholic beverages (beer and wine only) and gasoline services in conjunction with a convenience store and allow outside seating, outdoor speakers and a drive through in conjunction with a coffee shop. The property is currently zoned "CC" Community Commercial District and is owned by Hamco Realty Grapevine, LLC. CU12-49 — Grapevine Craft Brewery - submitted by Gary Humble for property located at 924 Jean Street and platted as Lot 1, Block 1, Slagle Addition. The applicant is requesting a conditional use permit to allow a brewery (beer only). The property is currently zoned "LI" Light Industrial District and is owned by Grapevine Craft Brewery LLC. CU12-51 — Pizza Snob - submitted by Snob 1 LLC for property located at 520 South Main Street, #300 and platted as Lot 2R, Block 1, City of Grapevine. The applicant is requesting a conditional use permit to allow the possession, storage, retail sale and on -premise consumption of alcoholic beverages (beer, wine and mixed beverages) in conjunction with a restaurant. The property is currently zoned "CBD" Central Business District and is owned by Biatwic, LLC. SU12-05 — Oncor Substation - submitted by Masterplan for property located at 1095 Texan Trail and proposed to be platted as Lot 1, Block 1, Grapevine Oncor Substation. The applicant is requesting a special use permit to allow a public utility distribution facility. The property is zoned "LI" Light Industrial and is owned by TNV Grapevine, Ltd. 2 After all parties have been given an opportunity to speak, the public hearing will be closed and the Commission and the City Council will deliberate the pending matters. Please contact Development Services Department concerning any questions, 200 S Main Street, Grapevine, Texas 76051 or PO Box 95104, Grapevine, Texas 76099, 817-410-3155. A copy of the site plan for all the above referenced requests is on file with the Development Services Department. 3 HP OfficeJet K Series K80 Personal Printer/Fax/Copier/Scanner Date Time Type Dec 28 3:14pm Fax Sent Log for DEVELOPMENT SERVICES 8174103018 Dec 28 2012 3:15pm Identification Duration Pages Result 98173907361 0:45 3 OK INVOICE Star -Telegram 808 Throckmorton St. FORT WORTH, TX 76102 (817)390-7761 Federal Tax ID 26-2674582 Bill To: CITY OF GRAPEVINE SECRETARY PO BOX 95104 GRAPEVINE, TX 76099-9704 Attn: Attn: TINA . BEN MEIR I Description Location Ctrl Depth CITY OF GRAPEVINE, TEXAS On I3580 1 95 a. Sales Discount Misc Fee too z4aa©o LAn ,3 k5�55� THE STATE OF TEXAS County of Tarrant CUI Q -U g Customer ID: CIT25 Invoice Number: 323933041 Invoice Date: 12/30/2012 Terms: Net due in 21 days Due Date: 12/31/2012 PO Number: Order Number: 32393304 Sales Rep: 043 Description: CITY OF GRAPEVI Publication Date: 12/30/2012 Linage IM .Rate Amount 95 LINE $7.24 $687.80 Net Amount: ($567.65) $10.00 $130.15 CHRISTY LYNNE HOLLAND Notary Public, State of Texas - Nly Commission Expires July 31, 2016 Before me, a Notary Public in and for said County and State, this day personally appeared Deborah Baylor Norwood, Bid and Legal Coordinator for the Star -Telegram, published by the Star -Telegram, Inc. at Fort Worth, in Tarrant County, Texas; and who, after being duly sworn, did depose and say that the attached clipping of an advertisement was published in the above named paper on the listed dates: BIDS & LEGAL DEPT. STAR TELEGRAM (817) 215-2323 (� SUBSCRIBED AND SWORN TO BEFORE ME, THIS Wednesday/Jogjoy 02, 2013. Notary F Thank You For Your Payment ---------------------------------------------- Remit To: Star -Telegram Customer ID: CIT25 P.O. BOX 901051 Customer Name: CITY OF GRAPEVINE SECR FORT WORTH, TX 76101-2051 Invoice Number: 323933041 Invoice Amount: $130.15 PO Number: Amount Enclosed: $ I CITY OF GRAPEVINE TEXAS On Tuesday evening, January 15, 2013 at 7:30 P.M. in the City Council Chambers, 2nd Floor, 200 South Main Street, Grapevine, Texas, the City Council and Planning and Zoning Commission of the City of Grapevine will hold a public hearing to consider the following items: CU12-41 - 7 - Eleven - Submitted by Brian. Nebel for property located at 1700 State Highway 26 and 'pro- I posed to be platted as Lot 2R1, Block 1, Grapevine Mills Addition, Phase 2. The applicant is requesting i a conditional use permit to allow ! the possession, storage; retail sale f and off -premise consumption of I alcoholic beverages (beer and wine f only) and gasoline services in . conjunction with a convenience store. The property is currently j zoned "CC" Community Commercial District and is owned by Florida l Bethel CU12-48 - 7- Eleven / Starbucks - I submitted by M JThomas Engi- 3121neerin& 3LC 125fIrapE.pWoods Avenue and proposed to be platted as Lot 1R, Block 1, Mustang Plaza, The uselpe mint t togallllovwna 20 fotipole retailgn asaleseandsoffspiremise rcon- sumption of alcoholic beverages (beer and wine only) and gas Pine services in conjunction with a convenience store and allow outside seating, outdoor speakers and a drive through in conjunction with a coffee shop, The property is currently zoned CC" Community Commercial District 'and is owned by Hamco Re..:alty Grapevine, LLC., Irl ')-AO _ a...____ - . _ andpplatted as Lot 1,, Block 1, Slagle Addition. The applicant is re- questing a conditional use permit to allow a brewery (beer only). The property is currently zoned "LI' Light by Grapevine Craft Breweis ry LLC. CU12-51 - Pizza Snob - submitted by Snob 1 LLC for property located at 520 -South Main Street, #300 and platted as Lot 2R, Block 1, City of Grapevine. The applicant is requesting a conditional use permit to allow the possession, storage, retail sale and on-C�remise con- sumption of alcohn it ho„or.— is owne banddy Biatwic, LLC, dU12-05 - Oncor Substation sub- mitted by Masterplah for property located at 1095 Texan Trail -and Proposed to be platted as Lot 1, Block 1, Grapevine Oncor Substa- tion. The applicant is. requesting a Utility distributionpermit o facility,puThe property is zoned "LI"_ Light in- dustrial and is owned 6y TNV Grapevine, Ltd. After all parties have been given an opportunity to speak, the public hearing will be closed and : the Commission and the City Council will deliberate the pending matters: Please contact Development ser- vices Department concerning any Grapevine, Texas 7600 S 51 nor POrBox 95104, Grapevine, Texas 76099, 817- 410.3155. A copy of the site plan for all the above referenced re- quests is on file with the Devel- opment Services Department. Development Service Department Public Hearing Property Owner Research Applicant: Grapevine Craft Brewery Case No.: CU 12-49 Address/Legal Description: 924 Jean Street Legal Description Situs Address Tax Roll Name/Address Hilltop Addition 404 E Dallas Rd V W Grapevine LTD Blk 2, Lot 1 R 1000 Northchase Dr #203 Goodlettsville, TN 370722165 M & H Addition 316 E DALLAS RD AIGTLP Blk 1, LoT 1R1 P O BOX 795 SHAWNEE MISSION KS 662010795 DOOLEYWILLIAM 306 E DALLAS RD AIGTLP - TEXAS LP SURVEY P O BOX 16460 A 422, TR 30A PHOENIX AZ 850116460 HILLTOP ADDITION 931 JEAN ST HAYWORTH, WARD BLK 2, LOT 6A 2757 MESQUITE LN GRAPEVINE, TX 76051 HILLTOP ADDITION 930 BERRY ST HAYWORTH, WARD BILK 2, LOT 6B 2757 MESQUITE LN GRAPEVINE, TX 76051 HILLTOP ADDITION 936 JEAN ST TUCKER, KENNETH A BILK 1, LOT 7 1805 SILVERSIDE DR GRAPEVINE, TX 76051 HILLTOP ADDITION 937 JEAN ST HAYWORTH, WARD BILK 2, LOT 7A 2757 MESQUITE LN GRAPEVINE, TX 76051 HILLTOP ADDITION 944 JEAN ST FISHER, GLENDA J BILK 1, LOT 8 P O BOX 1171 GRAPEVINE, TX 760991171 M & H ADDITION 932 JEAN ST SJCD LLC BILK 1, LOT 2 932 JEAN ST GRAPEVINE, TX 76051 DOOLEY WILLIAM 324 E DALLAS RD ARGRAVES, R O SURVEY 324 E DALLAS RD A 422, TR 33A GRAPEVINE, TX 76051 HILLTOP ADDITION 906 JEAN ST LP INDUSTRIAL LLC BILK 1, LOT 1 R 4100 HERITAGE AVE #105 GRAPEVINE, TX 760515716 SLAGLE ADDITION JEAN ST SLAGLE MANAGEMENT LOT 1, BILK 1 P O BOX 167906 IRVING, TX 750167906 O:\ZCU\CU 12-49.31 a.doc Development Service Department Public Hearing Property Owner Research Applicant: Grapevine Craft Brewery Address/Legal Description: 924 Jean Street Case No.: CU12-49 Proof of Notice in the City of Grapevine, Texas Case No. CU12-49 Planning and Zoning Commission Pursuant to Article 1011 F, Vernon's Civil Statutes: I, the undersigned being a Planner for the City of Grapevine and having the records pertaining to applications for change of zoning and the notices sent pursuant thereto under my supervision and control, in the performance of the function of my office and employment, do hereby solemnly swear and affirm that pursuant to Article 1011 F, Vernon's Civil Statutes, written notices were served on the parties listed above in the City of Grapevine, zoning Case CU12-49 on this the 4th day of January 2013. (D) — Duplicate (,h — Indicates notice addressed and stamped. Executed this the 4th day of January 2013. Lin W 11 I I a ro.: P .J 1 -MAN—IRM State of Texas County of Tarrant Before me Susan Batte on this day personally appeared Albert Triplett Jr. known to me (or proved to me on the oath of card or other document) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. (Seal) given under my hand and seal of office this 4th day of January 2013. --Lvn Not in and for Stat of Texas O:\ZCU\CU 12-49.31 a.doc 2 TR 650 TR 65 D PN��L Qr M 02 jl p 5 TR (jO 7.5944 AC 0Nry 14 It4 �10 1 Q 1R1 3 `31 Z 1.354 @ 1.953 @ PRIVATE DR 2 1.468 @ E DALLAS RD TR LLQ. s �S33A VPP p R Na�8 .717 - TR 29 1.24 AC 1R1 M �, 2 P6A@12�78 .8 8 E NASH ST W 5 4 NVOW \Q N\. C, -Eye 1 A 3 GOM�6 Ort 1R 3 1 1R III .„GxPP1 0 1 inch = 200 feet 2 1R TR 1H 1p> CU 12-49 Grapevine Craft Brewery V W GRAPEVINE LTD 1000 NORTHCHASE DR #203 GOODLETTSVILLE, TN 370722165 AIGTLP P O BOX 795 SHAWNEE MISSION KS 662010795 AIGTLP - TEXAS LP P O BOX 16460 PHOENIX AZ 850116460 ARGRAVES, R O 324 E DALLAS RD GRAPEVINE, TX 76051 FISHER, GLENDA J P O BOX 1171 GRAPEVINE, TX 760991171 HAYWORTH, WARD 2757 MESQUITE LN GRAPEVINE, TX 76051 LP INDUSTRIAL LLC 4100 HERITAGE AVE #105 GRAPEVINE, TX 760515716 SJCD LLC 932 JEAN ST GRAPEVINE, TX 76051 SLAGLE MANAGEMENT P O BOX 167906 IRVING, TX 750167906 TUCKER, KENNETH A 1805 SILVERSIDE DR GRAPEVINE, TX 76051 CU 12-49 GRAPEVINE CRAFT BREWERY File #: CU 12-49 GRAPEVINE CRAFT BREWERY NOTICE OF PUBLIC HEARING GRAPEVINE CITY COUNCIL AND PLANNING AND ZONING COMMISSION Because you are a property owner within 200 feet of the subject tract of land as shown by the last City -approved tax rolls, you received this notice. If you cannot or do not wish to attend the hearing, the attached form is provided for your convenience. If owners of more than 20% of the property within 200 feet of the subject tract object to the case, a 3/4 vote of the City Council is required to approve the request. Purpose of Request: The public hearing is to consider an application submitted by Gary Humble for property located at 924 Jean Street and platted as Lot 1, Block 1, Slagle Addition. The applicant is requesting a conditional use permit to allow a brewery (beer only). The property is currently zoned "LI" Light Industrial District and is owned by Grapevine Craft Brewery LLC. A copy of the site plan is on file with the Development Services Department. Hearing Procedure: When: 7:30 PM, TUESDAY, JANUARY 15, 2013 What: JOINT PUBLIC HEARING GRAPEVINE CITY COUNCIL & PLANNING AND ZONING COMMISSION Location: PUBLIC HEARING: COUNCIL CHAMBERS, 2nd FLOOR COMMISSION'S DELIBERATION SESSION, 2nd FLOOR 200 S. MAIN STREET, GRAPEVINE, TEXAS Applicant and Other Speakers' Presentation. Public Input, Neighborhood Associations, Property Owners Within 200 feet, Interested Citizenry. Questions from City Council and Planning and Zoning Commission for Applicants, City Staff and Guests Present. File #: CU 12-49 GRAPEVINE CRAFT BREWERY WRITTEN COMMENTS MUST BE RECEIVED BY THIS OFFICE NO LATER THAN 5PM ON MONDAY, JANUARY 14, 2013 Procedure to Respond: As (a Property Owner within 200 feet of the subject tract) or (an interested citizen), I (approve) (protest) and/or (have the following comments) Current Property Owner (printed) Property Address: Lot , Block , Addition Property Owner Signature: Property Owner Name (printed): Daytime phone number: Telephone: (817)410-3155 Fax: (817)410-3018 Direct questions and mail responses to: Planning Technician Department of Development Services City of Grapevine P.O. Box 95104 Grapevine, Texas 76099 CU 12-49 GRAPEVINE CRAFT BREWERY PROPERTY OWNERS WITHIN NOTIFICATION AREA SUPPORT: OPPOSITION 2 LETTERS 0 LETTERS CONCERNED CITIZENS THAT DO NOT OWN PROPERTY WITHIN NOTIFICATION AREA SUPPORT: OPPOSITION: 7 LETTERS 0 LETTERS GRAPEVINE BUSINESS OWNERS: SUPPORT: 1 LETTER RESIDENTS OF GRAPEVINE UNABLE TO VERIFY ANY PROPERTY OWNERSHIP SUPPORT OPPOSITION 3 LETTERS 0 LETTERS DOES NOT OWN PROPERTY NOR A BUSINESS OWNER IN GRAPEVINE SUPPORT: I # LETTERS OPPOSITION: 0 LETTERS E DALLAS RD KI lull C 1 OQ TR 33A ft ✓✓✓✓✓✓✓✓✓✓ ✓ ✓✓✓✓✓✓✓✓✓ 1 R1 ✓✓✓,✓✓✓✓ 6A 2 ✓✓✓✓✓✓✓✓✓✓✓ E NASH ST GRp'P�G Pp,� DALL m 0 CU 12-49 1 inch = 100 feet Grapevine Craft Brewery Page 1 of 1 Susan Batte - Grapevine Craft Brewery From: Jerry Drew < To: <sbatte@grapevinetexas.gov> Date: 1/7/2013 3:37 PM Subject: Grapevine Craft Brewery CC: Gary Humble < Dear Susan Batte, This is just a short note to let you know that we are looking forward to the opening of Grapevine Craft Brewery. I own the property at 932 Jean St, just to the south of the location for Grapevine Craft Brewery. Gary has been by to discuss both the building plans and operational plans for Grapevine Craft Brewery, and we welcome him to the neighborhood and Grapevine. I can tell they are going to be great neighbors, both respectful and courteous. Regards, Jerry Drew President NetworkThermostat (214)270-1977 (office -direct) (866)563-0711 (toll free) www_ networkthermostat_ com From: Susan Drew < To: <sbatte@grapevinetexas.gov> Date: 1/9/2013 4:28 PM Subject: Grapevine Craft Brewery CU12-49 CC: < Good Afternoon Susan, I understand that Grapevine Craft Brewery is having a public hearing for the property located at 924 Jean Street in Grapevine, TX 76051. We are in the lot adjacent to that property and have had the pleasure of meeting Gary Humble to discuss his plans to open the Grapevine Craft Brewery. We are very excited about the potential of having them as our neighbors. Gary made it a point ask us if we had any objections to any of their ideas and was truly concerned about not upsetting any of his potential neighbors. I believe he will be a great addition to our "neighborhood" and am looking forward to seeing their project move forward. Regards, Susan Drew XEC, LLC 214-270-1980 214-279-4748 Fax File #: CU 12-49 GRAPEVINE CRAFT BREWERY WRITTEN COMMENTS MUST BE RECEIVED BY THIS OFFICE NO LATER THAN 5 PM ON MONDAY, JANUARY 14, 2013 Procedure to Respond: erty Owner within 200 feet of the subject tract) or (an interested citizen), I (approve) protest) and/or (have the following comments) ,.-- - Current Property Owner (printed) Property Address: T Lot , Block , Addition Property Owner Signature. Property Owner Name (printed): Daytime phone number: Telephone: (817)410-3155 Fax: (817)410-3018 Direct questions and mail responses to: Planning Technician Department of Development Services City of Grapevine P.O. Box 95104 Grapevine, Texas 76099 JAN 14 2013 Page 1 of 1 Susan Batte - Grapevine Craft Brewery CU12-49 From: "Fuqua, Gail" < To: "sbatte@grapevinetexas.gov" <sbatte@grapevinetexas.gov> Date: 1/7/2013 11:00 AM Subject: Grapevine Craft Brewery CU12-49 I understand that GCB is scheduled before the Grapevine City Council next regarding opening their brewery in Grapevine- I have lived in Grapevine since 7962- It is a terrific town and we have loved living here and raising our son here • A brewery would be a fine fit for the downtown area of Grapevine- My husband and I have often wondered why we didn't already have one • Along with the restaurants, wineries and taverns we currently have in town, a brew pub is a perfect addition and would draw many tourists and keep the residents local- I urge you approve their application Thank you - Gail Fuqua 2825 Tumbleweed Trail Grapevine TX 76051 817-455-9059 PROPERTY OWNER NOT WITHIN 200 FEET OF SUBJECT PROPERTY l JAN 72013 IU file:HCADocuments and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EAAAC4GRPV... 1/7/2013 Page 1 of 1 Susan Batte - Spam: Grapevine Craft Brewery CU12-49 From: " To: "sbatte@grapevinetexas.gov" <sbatte@grapevinetexas.gov> Date: 1/7/2013 4:35 PM Subject: Spam: Grapevine Craft Brewery CU12-49 CC: "mmliles verizon.net" <mmliles verizon.net> My wife and I would both are in favor of a local craft brewery in Grapevine. We believe it would be beneficial to Grapevine and add to the existing draw of the downtown area. Brad and Michelle Liles 1909 Stafford Rd Grapevine TX 76051 PROPERTY OWNER NOT WITHIN 200 FEET OF SUBJECT PROPERTY file://C:\Documents and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EAF950GRPV... 1/7/2013 Susan Batte - Grapevine Craft Brewery CU12-49 From: Curtis Ratliff <curtisratliff sbcglobal.net> To: <sbatte@grapevinetexas.gov> Date: 1/7/2013 2:13 PM Subject: Grapevine Craft Brewery CU12-49 Page 1 of 1 Susan, please receive this letter in support of the Grapevine Craft Brewery CU12-49 on the upcoming January Council agenda. Have A Good Day!! Curtis Ratliff 220 Blevins St Grapevine, Tx. 76051 817 846 0799 PROPERTY OWNER NOT WITHIN 200 FEET OF SUBJECT PROPERTY ✓qN 9 file:HC:\Documents and Settings\sbatte\Local Settings\TempAPgrpwise\50EAD7EDGRPV... 1/7/2013 Page 1 of 1 Susan Batte - Grapevine Craft Brewery CU12-49 From: "Kevin Perkins" <kevinp2 airmail.net> To: <sbatte@grapevinetexas.gov> Date: 1/7/2013 12:18 PM Subject: Grapevine Craft Brewery CU12-49 To whom it may concern: As a citizen of Grapevine, I would like to express my whole hearted support for the Grapevine Craft Brewery. I believe the establishment they have proposed has the potential to be a great addition to our already fantastic city. Kevin Perkins 1137 S Pine Street Grapevine, TX 76051 Phone: 214-207-3182 Email: kevinp2 airmail.net PROPERTY OWNER NOT WITHIN 200 FEET OF SUBJECT PROPERTY file://C:\Documents and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EABDIDGRPV... 1/7/2013 Page 1 of 1 Susan Batte - Grapevine Craft Brewery CU12-49 From: Steve Porcari <steve fcbrewing.com> To: <sbatte@grapevinetexas.gov> Date: 1/7/2013 11:40 AM Subject: Grapevine Craft Brewery CU12-49 Susan, As a Grapevine resident and the owner of a craft brewery in Dallas I am extremely excited about the opening of Grapevine Craft Brewery. I actually eyed their location for quite a while prior to my partners deciding on Dallas for our location. I think it will be a great addition to our city. As a resident I would appreciate your support of Grapevine Craft Brewery. Thanks! Steve & Becky Porcari residents since 2002 218 Ruth St. Grapevine, TX 76051 steve porcari steve fcbrewing.com 423 singleton ave., dallas, tx, 75201 phone (214) 695 3680 fcbrewing.com fcbrewing FOUR CORNERS BREW NS Cl d. OR [AS 1% PROPERTY OWNER NOT WITHIN 200 FEET OF SUBJECT PROPERTY file:HC:\Documents and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EAB44AGRPV... 1/7/2013 Page 1 of 1 Susan Batte - Grapevine Craft Brewery CU12-49 From: Diana Boules <dboules yahoo.com> To: <sbatte@grapevinetexas.gov> Date: 1/7/2013 12:47 PM Subject: Grapevine Craft Brewery CU12-49 Dear Grapevine City Council - Please support having a local craft brewery here in our city. On the Jan 15th agenda case number, CU12-49 is on the agenda. Please support this efforts as I believe a craft local beer would really add to the Grapevine experience. We have lots of choices for wine lovers, now we can include those craft beer lovers. I am a Grapevine resident and my information is: Jeff & Diana Boules 528 Alamo Trail Grapevine, TX 76051 Thanks for your consideration of this opportunity. Jeff & Diana Boules PROPERTY OWNER NOT WITHIN 200 FEET OF SUBJECT PROPERTY file:HC:\Documents and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EAC3FFGRPV... 1/7/2013 Page 1 of 1 Susan Batte - Grapevine Craft Brewery From: Kevin Snyder <kevinsnyder7 verizon.net> To: <sbatte@grapevinetexas.gov> Date: 1/7/2013 10:00 AM Subject: Grapevine Craft Brewery Dear Ms. Batte, I am writing to support the application of the Grapevine Craft Brewery (CU12-49). Having a local craft brewery will be convenient for Grapevine residents and will be another excellent tourist attraction consistent with the City's existing wineries and retail establishments. Thanks, Kevin Snyder 2005 Lake Forest Road Grapevine, TX 76051 PROPERTY OWNER NOT WITHIN 200 FEET OF SUBJECT PROPERTY D JAN 7 2013 file:HCADocuments and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EA9CA4GRPV... 1/7/2013 906 Jean St. Suite 103 el Grapevine, TX 76051 THE (972) 539-0406 B (972) 355-1952 FAX BETHANYGROUP www.thebetbanygroup.com ECCLESIASTICAL ART SEATING - FURNISHINGS 01.07.13 Regarding: New Brewery in Grapevine Texas CU12-49 To Whom It May Concern: I'm aware that Grapevine Craft Brewery is in the process of trying to establish their place of business in Grapevine. I office at 906 Jean St which neighbors the property I believe they are interested in acquiring. In short, I was very excited to hear that a local brewery is being established in Grapevine. I think it further solidifies the qualities I appreciate about the city I work in. That is, in my opinion Grapevine is an eclectic boutique style community that offers uniqueness not found anywhere else in the Metroplex. With the wide variety of people I know from all over the state, Grapevine is well known and popular among them all. Each of them name different reasons they like Grapevine but the same themes resound—boutique, eclectic, unique. I believe a brewery adds to the appeal and draw of the city. As a local business owner and operator I'm in full support of the brewery being established in Grapevine and near my place of business. I look forward to supporting them in their efforts and hope I can be a resource for their success and development in the city. Please feel free to contact me directly if I can be of further assistance. Regards, James E. Kling The Bethany Group Business Owner within 200 feet Page 1 of 1 Susan Batte - Grapevine Craft Brewery CU12-49 From: Chris Sonderhouse <sonderc yahoo.com> To: "sbatte@grapevinetexas.gov" <sbatte@grapevinetexas.gov> Date: 1/7/2013 9:51 AM Subject: Grapevine Craft Brewery CU12-49 I support this company coming to Downtown Grapevine. I am a resident of Grapevine and believe that this type of business will continue to grow the downtown area. Chris Sonderhouse 604 Church St., Grapevine, TX 76051 Resident of Grapevine. Does not own property in Grapevine 1 JAN 72013 y� file://C:\Documents and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EA9A86GRPV... 1/7/2013 Page 1 of 1 Susan Batte - Grapevine Craft Brewery CU12-49 From: "Norris, Summer" < To: "sbatte@grapevinetexas.gov" <sbatte@grapevinetexas.gov> Date: 1/10/2013 11:08 AM Subject: Grapevine Craft Brewery CU12-49 City of Grapevine: am writing in support of the proposition to include a local craft brewery in Grapevine. It is the one thing that our fabulous city is currently missing. Hailing from the Northwest, I have been perfectly delighted with the North Texas Craft Beer Boom. On weekends I often travel to Dallas, where the craft beer scene is prevalent. Unfortunately, the only establishment in Grapevine that seems to sell any local beer is Tolbert's. I would love to keep my business in Grapevine and support local endeavors. Thank you for your consideration. Summer Norris 925 S. Main St. #3348 Grapevine, TX 76051 NOTICE: This email and any attachments are for the exclusive and confidential use of the intended recipient(s). If you are not an intended recipient, please do not read, distribute, or take action in reliance upon this message. If you have received this in error, please notify me immediately by return email and promptly delete this message and its attachments from your computer. I II I JAN 10 2013 Resident of Grapevine Not a propery Owner file://CADocuments and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EEA147GRPV... 1/10/2013 low Kri$tine Andersen Munaretto Certified Public Accountant January 9, 2013 City of Grapevine Development Services PO Box 95104 Grapevine, TX 76099 Subject: Grapevine Craft Brewery CU12-49 Dear City of Grapevine Officials, P.O Box 818 Grapevine, Texas 76099 817.329.0106 866.708.1293 fax I am writing this letter in support of Grapevine Craft Brewery and their plans to open a micro -brewery in Grapevine, Texas. I own an established business in Grapevine and live at the 925 Main Street Apartment complex. It is exciting to think that Grapevine has the opportunity to become home of one of the few micro -breweries in North Texas! As a resident of the city and one who both lives and works close to the proposed site of the brewery, I am glad to welcome this establishment to our community. A craft brewery will enhance the uniqueness of our fine city. I have met with Gary Humble, one of the proprietors, and have confidence that he will run a top notch operation. I hope that the city approvals will be granted so the brewery can move forward and begin operations soon. Sincer ly, f� qKr*tine A. Munaretto, CPA J�m JAN 9 2013 Resident of Grapevine Not a propery Owner Page 1 of 1 Susan Batte - Grapevine Craft Brewery - letter of support From: Marc Mallery <mgmallery benekeith.com> To: "sbatte@grapevinetexas.gov" <sbatte@grapevinetexas.gov> Date: 1/7/2013 2:16 PM Subject: Grapevine Craft Brewery - letter of support Susan, Case - Grapevine Craft Brewery CU12-49 I am writing to support Gary Humble and Grapevine Craft Brewery, which is coming to Grapevine soon. I work for Ben E. Keith Foods, and have many clients in Grapevine, on Main Street. I have gotten to know Gary over the last month, although he will not be serving food, I will support Gary in his new venture. I believe Gary is honest and sincere, and very happy to be included into Grapevine, and it's wonderful history, shopping and food! Thank you for your time, Delivering choices customers know ... and prefer! Marc Mallery Ben E. Keith Foods - DFW Division cell 682-365-8715 fax 817-337-4745 voicemail 817-759-6111 customer service 817-759-6050 www.markon.com www.benekeith.com www.winnmeat. comfood www.bekeguipment.com Does not own property nor a business owner in Grapevine D� �qN ? 2013 file://CADocuments and Settings\sbatte\Local Settings\Temp\XPgrpwise\50EAD8AIGRPV... 1/7/2013 GRACE "Giving as we have received... to help those in need.' January 15, 2013 Honorable Mayor William D. Tate City of Grapevine 200 S. Main Street Grapevine, TX 76051 Dear Honorable Mayor and Members of the Grapevine City Council This letter supports the new business development initiative proposed by Grapevine Craft Brewery. We are encouraged a business owner who isn't even established in Grapevine yet is already willing to invest in our community and be involved. Grapevine Craft Brewery has joined GRACE as a lead sponsor in the upcoming "Drive Into The Night " golf tournament being held on March 22, 2013. We believe a business who supports local initiatives is a business worth supporting and encourage you to consider their proposal to bring the business to Grapevine. Thank you for your consideration, Lhefer Executive Director, GRACE 817-305-4650 l.i0, ITEM # baa TO: HONORABLE MAYOR, CITY COUNCIL MEMBERS AND THE PLANNING AND ZONING COMMISSION FROM: BRUNO RUMBELOW, CITY MANAGER SCOTT WILLIAMS, DEVELOPMENT SE VICES DIRECTOR MEETING DATE: JANUARY 15, 2013 SUBJECT: DEVELOPMENT SERVICES TECHNICAL REPORT OF CONDITIONAL USE APPLICATION CU12-49, GRAPEVINE CRAFT BREWERY Grapevine 5 r� APPLICANT: Gary Humble I Ooze RQ I I\ F I I.H.1635 PROPERTY LOCATION AND SIZE: " I The subject property is located at 924 Jean Street and is platted as Lot 1, Block 1, Slagle Addition. The Hall -Johnson S?� FW ADp t ; subject property contains approximately 0.626 acres ro I and has 131 feet of frontage along Jean Street. LJ ro I m Glade Rd. I _I ct REQUESTED CONDITIONAL USE AND COMMENTS: The applicant is requesting a conditional use permit for the possession, storage, wholesale sales and on -premise manufacturing (beer only) in conjunction with a brewery. The applicant intends to construct a new building totaling 6,740 square feet on the subject site for the establishment of a beer brewery. The beer will be sold wholesale to restaurants and pubs. No retail sale of the beer will be conducted on site but the applicant envisions offering free samples in conjunction with tours of the facility on Saturdays. Total required parking for the proposed use is 23-24 are provided. In addition to wall signage, a 37 - square foot, four foot in height ground sign is proposed along Jean Street. PRESENT ZONING AND USE: The subject property is currently zoned "LI" Light Industrial District and is undeveloped. O: ZCU\CU12-49.4 1 January 10, 2013 (2:23PM) HISTORY OF TRACT AND SURROUNDING AREA: The subject property and the immediate surrounding area were rezoned in the 1984 City Rezoning from 1-1" Light Industrial District to "LI" Light Industrial District. The site to the west received approval of Conditional Use Request CU99-23 (Ord. No. 99-80) in May 1999, amending the previously approved site plan in order to allow the retail sale and outdoor display of new medium sized trucks. Also on the site to the west Conditional Use Request CU96-24 (Ord. 96-77) approved by Council at their October 15, 1996 meeting established the truck leasing facility with the sale and repair of new and used heavy trucks and associated outside land uses. Conditional Use Request CU01-41 was considered and denied by Council at their August 21, 2001 meeting. At that meeting the applicant requested to expand the site for further inventory/outdoor display of new, medium -duty trucks. At the January 20, 2004 meeting Council approved a revised conditional use request CU03-54 (Ord. 2004-03) on the site to the west for an expansion of the main structure and an expansion to the site to be used for additional employee parking however neither expansion took place. Conditional Use Request CU08-07 (Ord. 2008-19) was approved at the April 15, 2008 meeting on the site the west to allow for an automotive repair/collision repair center. The Site Plan Review Committee at their May 14, 2008 meeting in conjunction with recommendations from the City's Historic Preservation Officer approved exterior elevation revisions and enhanced landscaping on the site to the west. SURROUNDING ZONING AND EXISTING LAND USE: NORTH: "LI" Light Industrial District - office warehouse building SOUTH: "LI" Light Industrial District - office EAST: "LI" Light Industrial District - manufacturing WEST: "LI" Light Industrial District - Grapevine Collision Center AIRPORT IMPACT: The subject tract is located within "Zone A" Zone of Minimal Effect as defined on the "Aircraft Sound Exposure: Dallas/Fort Worth Regional Airport Environs" Map. Few activities will be affected by aircraft sounds in "Zone A" except for sound sensitive activities such as auditoriums, churches, schools, hospitals, and theaters. The applicant's proposal is an appropriate use in this noise zone. MASTER PLAN APPLICATION: The Master Plan designates the subject property as Industrial Commercial use. The applicant's request is in compliance with the Master Plan. 0:\ZCU\CU12-49.4 2 January 10, 2013 (2:23PM) THOROUGHFARE PLAN APPLICATION: Jean Street is not designated a thoroughfare as shown on the City's Thoroughfare Plan. /at 0:\ZCU\CU12-49.4 January 10, 2013 (2:23PM) NWEI Grapevine Craft Brewery, LLC I I JAN 4 2013 L c/o Gary Humble uu 2150 W Northwest Hwy STE 114-1094 Grapevine, TX 76051 IBy-- Tel: 682.651.5797 December 3, 2012 Grapevine City Council Grapevine Planning & Zoning Commission c/o Development Services Depart 200 S. Main Street Grapevine, TX 76051 Re: Conditional Use Request for Grapevine Craft Brewery 924 Jean Street, Grapevine, Texas Dear Council members and Commissioners: Grapevine Craft Brewery, LLC is excited about the opportunity to bring the very first production microbrewery to Grapevine. We feel that the current winery environment in Grapevine in conjunction with the gain in popularity of craft beer in North Texas makes Grapevine a prime market for our microbrewery. Additionally, we have a strong desire to work with the city in providing yet another attraction to our great community and just one more reason for people to stop in and visit Grapevine. At this time, we would ask you to consider our request to: 1. allow a microbrewery use within the "LI" zoning district. 2. allow for the on -premise manufacturing and storage of alcoholic beverages (beer) as part of this use request. 3. allow for weekly touring of our facility by the public, specifically once a week on Saturday afternoons from 11 am to 3pm. 4. allow for the on -premise consumption of alcoholic beverages (beer) in the form of free samples during our facility tours. As a production microbrewery, our primary business and source of revenue is the wholesale to restaurants and pubs across North Texas of draught beer. We do foresee canning in the future for sales to grocery store chains and package stores, but will be draught only at this time. It is important to note that there is no retail, direct sales to consumers or restaurant part of our business as these activities are not permitted by Texas state law. So, there would be virtually no public traffic to our microbrewery during the normal work week. The brewing process is fairly straight forward and does not require the use of toxic or potentially harmful chemicals. Beer is made primarily of four main ingredients: grain, hops, yeast and water. Beer manufacturing is an organic process where yeast cells metabolize sugars (starches) to release alcohol and CO2 as bi-products. We plan to employ a 30bbl (barrel) brewhouse with 30bbl and 60bbl fermenter tanks that will give our facility a maximum capacity of 10,000 bbls/year. It's important to note that according to our 5 -year growth plan, we will still be under 5,000 bbls of production per year. The state of Texas legally defines a "microbrewery" as a brewery with less than 75,000 bbls/year of production. We do not believe that our operations will have any negative impact on our neighbors and the surrounding area. In fact, we would hope that our improvements to the property are viewed as a valuable asset to the community and something that would make our neighbors proud. It is a very common practice across the United States as well as the state of Texas for a microbrewery to provide a weekly tour of its facilities to the public. And by and large a brewery will charge a fee ranging from $5 to $60 for this tour. We are planning a weekly tour of the brewery open to the public on Saturday afternoons for a $10 fee. That fee will include entrance into our facilities, a souvenir glass and a 20 -minute overview of the brewing process by one of our brewmasters. While on premise, visitors will be able to taste free samples of our beers. This is permitted and regulated by the TABC with a "brewer's permit." I (Gary Humble, the owner) have been a pastor for the last 15 years. Most recently I was an Executive Pastor at Cross Timbers Church in Argyle, TX and then a pastor on staff at Gateway Church in Southlake, TX. For many years, I knew that my drive for entrepreneurship would lead me to start my own business. And for the last two years, I've been a homebrewer and have come to love the art of making beer. Being a biology major in college and then a musician in the church, the marriage of science and art in the process of brewing fit me like a glove. Not to mention, this is a very good time to get into the craft beer business. That said, building a brewery is not only about starting a profitable business and making great beer. For me, it's about operating my business in a manner that makes Grapevine Craft Brewery a meaningful part of this community. Since starting our LLC in September, we were already able to partner with GRACE for Thanksgiving and were on -hand at the food bank. We have also committed to sponsor the Drive Into the Night golf tournament in March. Beyond that, we plan to partner with organizations that are making a difference in our community. My wife and I own a home in Grapevine and have lived here now for four years. It has been an absolute pleasure getting to meet members of the city staff and council as well as from the Grapevine Chamber and the Convention and Visitors Bureau. We are very excited about the opportunity to work with the city and be part of a community that we love and support. JAN 4 2013 Thank you for your time and consideration for our request. Sincerely, Gary Humble JAN 4 2013 sy January 25, 2013 Gary Humble 1916 Longhorn Trail Grapevine, TX 76051 RE: GRAPEVINE FILE #CU12-49 Mr. Humble, This letter is to verify that your request for a conditional use permit located at 924 Jean Street and platted as Lot 1, Block 1, Slagle Addition, to allow the possession, storage, wholesale sales and on - premise manufacturing (beer only) in conjunction with a brewery was approved by City Council on January 15, 2013. A copy of the approved site plan and Ordinance 2013-03 is enclosed. On January 15, 2013, the Planning and Zoning Commission recommended the City Council approve the request. Any changes to a site plan approved with a conditional use or a special use (no matter how minor or major) can only be approved by city council through the public hearing process. No conditional use permit shall be valid for a period longer than one (1) year from the date on which the City Council grants the conditional use, unless within such one (1) year period: (1) a Building Permit is obtained and the erection or alteration of a structure is started, or (2) an Occupancy Permit is obtained and a use commenced. The City Council may grant one additional extension not exceeding one (1) year, upon written application, without notice or hearing. No additional extension shall be granted without complying with the notice and hearing requirements for an initial application for a conditional use permit. Please do not hesitate to contact us if we may be of further assistance (817)410-3155. Sincerely, Susan Batte Planning Technician DEVELOPMENT SERVICES DEPARTMENT The City of Grapevine m r'0. Box 95104 • Grapevinc, Texas X6099 • (817) 410-3154 Fax (817) 410-301.8 e �vww.grapevinetexas.gov x(11/20/2012) Albert Triplett - AT, JR, PL -Gary Humble Page 1 From: Albert Triplett To: Albert Triplett; Allen Hunt; City Hall Conference Room B; John Robert... CC: Planning_Group Date: 11/20/2012 Time: 10:00 AM - 11:00 AM Subject: AT, JR, PL -Gary Humble Place: City Hall Conference Room B 214-708-8091 Micro Brewery on the vacant lot (Slagle Addition Blk 1 Lot 1- 924 Jean St) south of 906 Jean Street �Zq1- Mar�z (11/20/2012) Albert Triplett - AT, JR, PL -Gary Humble From: Albert Triplett To: Albert Triplett; Allen Hunt; City Hall Conference Room B; John Robert... CC: Planning_Group Date: 11/20/2012 Time: 10:00 AM - 11:00 AM Subject: AT, JR, PL -Gary Humble Place: City Hall Conference Room B 214-708-8091 Micro Brewery on the vacant lot (Slagle Addition Blk 1 Lot 1- 924 Jean St) south of 906 Jean Street oven L)S�kce- -K), (z V AN-- TW� I 4ek SYS Y ��ht -�5b4A— ��M - lo�-f� •--l-e, �oP � C,`rvJe *xqy I / �,��� Jj1rno Page 1� (12''/2012) Albert Triplett - RS, AT - Ed Kellie zrol From: Susan Batte To: Albert Triplett; City Hall Conference Room B; Ron Stombaugh CC: Planning_Group Date: 12/7/2012 Time: 10:00 AM - 11:00 AM Subject: RS, AT - Ed Kellie Place: /I City Hall Conference Room B Jeff Avery and Gary Humble'������ S Microbrewery j �.V :�-q -(-4 � JA Page 1 Abe- _ -) In QI 1 S T C t �- cC E S WO Qx - np� y -(.)v n v iS ck-, P-, 4CD Page 1 Abe- _ -) In QI 1 S T C t �- cC E S WO Qx - np� y -(.)v n v iS ck-, (12,'7/2012) Albert Triplett - RS, AT - Ed Kellie From: Susan Batte To: Albert Triplett; City Hall Conference Room B; Ron Stombaugh CC: Planning_Group Date: 12/7/2012 Time: 10:00 AM - 11:00 AM Subject: RS, AT - Ed Kellie Place: City Hall Conference Room B Jeff Avery and Gary Humble Microbrewery Page 1 S'- E DALLAS RD _ 3 i it W N •it - a � C . KOk �. 1 E NASH ST GU L 0 1 inch = 100 feet Case Number Name of Property Page 1 of 1 Ron Stombaugh - RE: meeting with Ron From: "Edward T. Kellie, P.E." <ekellie kellie- To: "'Gary Humble"' < Date: 12/5/2012 5:16 AM Subject: RE: meeting with Ron Gary: Their primary concern is the parking issue. Secondly, they need a better understanding of the craft brewery model: • Background on laws prohibiting on-site sales of beer (and how Rahr brewery and others use the sale of a commemorative glass and free samples to allow for the tour model). If you will only allow sampling of your craft beers or if other brewery's craft beer would also be sampled. • State law definitions of a brew pub and a brewery and what are the distinctions between them (annual production limits, other restrictions etc). An idea of the production goals you have. • A summary of the on-going efforts of the craft brewing industrial to have the State legislature revise laws to allow limited on-site sales and whether on-site sales is something you would pursue in the future should State law change. • A summary of the operating permits/ licenses you will need from the State. Ron would like this information before he discusses your case with the department heads next week. Edward Kellie, PE Kellie Engineering, Inc. Tel. 817-379-1225 Fax. 817-704-4458 www.kellie-engineering.com From: Gary Humble [mailto:gary grapevineontap.com] Sent: Tuesday, December 04, 2012 5:12 PM To: Edward T. Kellie, P.E. Subject: meeting with Ron Ed, Can you please give me any insight you may have into Ron's request for a meeting regarding the SUP app for Grapevine Craft Brewery? I'll be there by the way. Thanks, Gary file://C:\Documents and Settings\wsid1641\Local Settings\Temp\XPgrpwise\50BED8C2G... 12/7/2012 ALCOHOLIC BEVERAGE CODE TITLE 1. GENERAL PROVISIONS CHAPTER 1. GENERAL PROVISIONS Sec. 1.01. PURPOSE OF CODE. (a) This code is enacted as a part of the state's continuing statutory revision program, begun by the Texas Legislative Council in 1963 as directed by the legislature in Chapter 448, Acts of the 58th Legislature, 1963 (Article 5429b-1, Vemon's Texas Civil Statutes). The program contemplates a topic -by -topic revision of the state's general and permanent statute law without substantive change. (b) Consistent with objectives of the statutory revision program, the purpose of this code is to make the general and permanent alcoholic beverage law more accessible and understandable, by: (1) rearranging the statutes into a more logical order; (2) employing a format and numbering system designed to facilitate citation of the law and to accommodate future expansion of the law; (3) eliminating repealed, duplicative, unconstitutional, expired, executed, and other ineffective provisions; and (4) restating the law in modern American English to the greatest extent possible. Sec. 1.02. CONSTRUCTION OF CODE. The Code Construction Act (Chapter 311, Government Code) applies to the construction of each provision in this code, except as otherwise expressly provided by this code. Sec. 1.03. PUBLIC POLICY. This code is an exercise of the police power of the state for the protection of the welfare, health, peace, temperance, and safety of the people of the state. It shall be liberally construed to accomplish this purpose. Sec. 1.04. DEFINITIONS. In this code: (1) "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 w en ute . (2) "Consignment sale" means: (A) the delivery of alcoholic beverages under an agreement, arrangement, condition, or system by which the person receiving the beverages has the right at any time to relinquish possession to them or to return them to the shipper and in which title to the beverages remains in the shipper; (B) the delivery of alcoholic beverages under an agreement, arrangement, condition, or system by which the person designated as the receiver merely acts as an intermediary for the shipper or seller and the actual receiver; (C) the delivery of alcoholic beverages to a factor or broker; (D) any method employed by a shipper or seller by which a person designated as the purchaser of alcoholic beverages does not in fact purchase the beverages; (E) any method employed by a shipper or seller by which a person is placed in actual or constructive possession of an alcoholic beverage without acquiring title to the beverage; or (F) any other type of transaction which may legally be construed as a consignment sale. (3) "Distilled spirits" means alcohol, spirits of wine, whiskey, rum, brandy, gin, or any liquor produced in whole or in part by the process of distillation, including all dilutions or mixtures of them, and includes spirit coolers that may have an alcoholic content as low as four percent alcohol by Texas Alcoholic Beverage Code (2011) volume and that contain plain, sparkling, or carbonated water and may also contain one or more natural or artificial blending or flavoring ingredients. (4) "Illicit beverage" means an alcoholic beverage: (A) manufactured, distributed, bought, sold, bottled, rectified, blended, treated, fortified, mixed, processed, warehoused, stored, possessed, imported, or transported in violation of this code; (B) on which a tax imposed by the laws of this state has not been paid and to which the tax stamp, if required, has not been affixed; or (C) possessed, kept, stored, owned, or imported, with intent to manufacture, sell, distribute, bottle, rectify, blend, treat, fortify, mix, process, warehouse, store, or transport in violation of this code. (5) "Liquor" means any alcoholic beverage containing alcohol in excess of four percent by weight, unless otherwise indicated. Proof that an alcoholic—beverage is alcohol, spirits of wine, whiskey, iquor, wine, brandy, gin, rum, ale, malt liquor, tequila, mescal, habanero, or barreteago, is prima facie evidence that it is liquor. (6) "Person" means a natural person or association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, servant, or employee of any of them. (7) "Wine and vinous liquor" means the product obtained from the alcoholic fermentation of juice of sound ripe grapes, fruits, berries, or honey, and includes wine coolers. (8) "Hotel" means the premises of an establishment: (A) where, in consideration of payment, travelers are furnished food and lodging; (B) in which are located_ (i) at least 10 adequately furnished completely separate rooms with adequate facilities so comfortably disposed that persons usually apply for and receive overnight accommodations in the establishment, either in the course of usual and regular travel or as a residence; or (ii) at least five rooms described by Subparagraph (i) if the building being used as a hotel is a historic structure as defined by Section 442.001, Government Code; and (C) which operates a regular dining room constantly frequented by customers each day. (9) "Applicant" means a person who submits or files an original or renewal application with the county judge, commission, or administrator for a license or permit. (10) "Commission" means the Texas Alcoholic Beverage Commission. (11) "Permittee" means a person who is the holder of a permit provided for in this code, or an agent, servant, or employee of that person. (12) "Ale" or "malt liquor" means a malt beverage containing more than four percent of alcohol by weight. (13) "Mixed beverage" means one or more servings of a beverage composed in whole or part of an alcoholic beverage in a sealed or unsealed container of any legal size for consumption on the premises where served or sold by the holder of a mixed beverage permit, the holder of a daily temporary mixed beverage permit, the holder of a caterer's permit, the holder of a mixed beverage late hours permit, the holder of a private club registration permit, or the holder of a private club late hours permit. (14) "Barrel" means, as a standard of measure, a quantity of beer equal to 31 standard gallons. (15) "Beer" means a malt beverage containing one-half of one percent or more of alcohol by volume and not more than four percent of alcohol by weight, and does not include a beverage designated y label or otherwise by a name other than beer. (16) "Licensee" means a person who is the holder of a license provided in this code, or any agent, servant, or employee of that person. Texas Alcoholic Beverage Code (2011) 2 (17) "Manufacturer" means a person engaged in the manufacture or brewing of beer, whether located inside or outside the state. (18) "Original package," as applied to beer, means a container holding beer in bulk, or any box, crate, carton, or other device used in packing beer that is contained in bottles or other containers. (19) "Premises" has the meaning given it in Section 11.49 of this code. (20) "Citizen of Texas" and "citizen of this state" mean a person who is a citizen of both the United States and Texas. (21) "Minibar" means a closed container in a hotel guestroom with access to the interior of the container restricted by a locking device which requires the use of a key, magnetic card, or similar device. (22) "Minibar key" means the key, magnetic card, or similar device which permits access to the interior of a minibar. (23) "Guestroom" means a sleeping room, including any adjacent private living area, in a hotel which is rented to guests for their use as an overnight accommodation. (24) "Wine cooler" means an alcoholic beverage consisting of vinous liquor plus plain, sparkling, or carbonated water and which may also contain one or more natural or artificial blending or flavoring ingredients. A wine cooler may have an alcohol content as low as one-half of one percent by volume. (25) "Executive management" includes the administrator, the assistant administrator, individuals who report directly to the administrator, and the head of each division of the commission. Sec. 1.05. GENERAL PENALTY. (a) A person who violates a provision of this code for which a specific penalty is not provided is guilty of a misdemeanor and on conviction is punishable by a fine of not less than $100 nor more than $1,000 or by confinement in the county jail for not more than one year or by both. (b) The term "specific penalty," as used in this section, means a penalty which might be imposed as a result of a criminal prosecution. Sec. 1.06. CODE EXCLUSIVELY GOVERNS. Unless otherwise specifically provided by the terms of this code, the manufacture, sale, distribution, transportation, and possession of alcoholic beverages shall be governed exclusively by the provisions of this code. Sec. 1.07. RESIDENT ALIENS. (a) For purposes of any provision of this code that requires an applicant for a license or permit to be a United States citizen or Texas citizen, regardless of whether it applies to an individual, a percentage of stockholders of a corporation, or members of a partnership, firm, or association, an individual who is not a United States citizen but who legally resides in the state is treated as a United States citizen and a citizen of Texas. (b) If it is required that an individual have resided in the state for a specified period of time, an alien legally residing in the state satisfies the requirement if he has legally resided in the state for the prescribed period of time. If an alien becomes a United States citizen while residing in Texas, any continuous period of time he legally resided in the state immediately before becoming a citizen is included in computing his period of continuous residence in the state. See. 1.08. CREVIINAL NEGLIGENCE STANDARD FOR ADMINISTRATIVE ACTION. For the purposes of administrative actions under this code, a person acts with criminal negligence if the person acts with a mental state that would constitute criminal negligence under Chapter 6, Penal Code, if the act were an offense. Sec. 1.08. CRLNIINAL NEGLIGENCE DEFINED. For purposes of this code, a person acts with criminal negligence if the person acts with a mental state that would constitute criminal negligence under Chapter 6, Penal Code, if the act were an offense. Texas Alcoholic Beverage Code (2011) the notice is served. If the principal fails to duly file a new bond in the same amount and with the same conditions as the original bond before the expiration of the 30 -day period, his permit shall terminate when the 30 -day period expires. Sec. 11.72. DISCIPLIlVE FOR ACTIONS OF AGENT. The commission or administrator may suspend or revoke the permit of a person who is represented by the holder of an agent's permit as described by Section 35.01 or otherwise discipline the person based on an act or omission of the holder of an agent's permit only if an individual employed by the person in a supervisory position: (1) was directly involved in the act or omission of the holder of an agent's permit; (2) had notice or knowledge of the act or omission; or (3) failed to take reasonable steps to prevent the act or ornission. Sec. 11.73. AFFIRMATION OF COMPLIANCE. A person who holds a permit under Chapter 19, 20, 21, or 23 may not be subject to an administrative sanction for selling or delivering an alcoholic beverage to a retailer not authorized to purchase and receive the alcoholic beverage if the permit holder: (1) reasonably believes that the retailer is authorized to purchase and receive that type of alcoholic beverage; and (2) obtains from the retailer at the time of delivery a written affirmation, which may be printed or stamped on a sales invoice evidencing the sale or delivery of alcoholic beverages by the permit holder, that the retailer is authorized to purchase and receive the type of alcoholic beverage sold and delivered by the permit holder. CHAPTER 12. BREWER'S PERMIT (B) Sec. 12.01. AUTHORIZED ACTIVITIES. (a) The holder of a brewer's permit may: (1) manufacture, bottle, package, and label malt liquor; (2) import ale and malt liquor acquired from a holder of a nonresident brewer's permit; (3) sell the ale and malt liquor only to wholesale permit holders in this state or to qualified persons outside the state; F�e� Se (4) dispense ale and malt liquor for consumption on the premises; and (5) conduct samplings of ale or malt liquor, including tastings, at a retailer's premises. (b) An agent or employee of the holder of a brewer's permit may open, touch, or pour ale or malt liquor, make a presentation, or answer questions at a sampling event. Sec. 12.02. FEE. The annual state fee for a brewer's permit is $1,500. Sec. 12.03. ALE OR MALT LIQUOR FOR EXPORT. Regardless of any other provision of this code, a holder of a brewer's permit may manufacture and package malt beverages, or import them from outside the state, for shipment out of the state, even though the alcohol content, containers, packages, or labels make the beverages illegal to sell within the state. The permittee may export the beverages out of the state or deliver them at his premises for shipment out of the state without being liable for any state tax on beer, ale, or malt liquor sold for resale in the state. Sec. 12.04. CONTINUANCE OF OPERATION AFTER LOCAL OPTION ELECTION. The right of a brewer's permittee to continue operation after a prohibitory local option election is covered by Section 25 1.7 5 of this code. Sec. 12.05. SALES BY CERTAIN BREWERS. The holder of a brewer's permit whose annual production of ale in this state does not exceed, together with the annual production of beer by the holder of a manufacturer's license acting under the authority of Section 62.12 of this code at the same premises, a total of 75,000 barrels, may sell ale produced under the permit to those persons to whom the holder of a general class B wholesaler's permit may sell malt liquor under Section 20.01(3) of this code. With regard to such a sale, the brewer has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit. Texas Alcoholic Beverage Code (2011) 38 Sec. 12.06. USE OF FACILITIES. (a) An entity or successor to an entity that on May 1, 2005, held a brewer's or nonresident brewer's permit or whose brand was legally sold in this state may contract with the holder of a brewer's permit for the use of the permit holder's brewing facilities or to provide brewing services. (b) An entity or successor to an entity that on May 1, 2005, held a brewer's or nonresident brewer's permit or whose brand was legally sold in this state is not required to own its brewing facilities. (c) More than one brewer's permit may be issued for a single premises if the permit holder for the premises has contracted with an entity or successor to an entity that on May 1, 2005, held a brewer's or nonresident brewer's permit or whose brand was legally sold in this state for the use of the permit holders brewing facilities ur to provide brewing services. (d) This section does not authorize a person acting as an agent for a brewery located outside of this state to contract with the holder of a brewer's permit to brew ale or malt liquor on the person's behalf. A contract described by this subsection may only be entered into by the holder of a brewer's permit and another person holding a permit under this code. CHAPTER 13. NONRESIDENT BREWER'S PERMIT (J) Sec. 13.01. PERMIT REQUIRED. A nonresident brewer's permit is required for any brewer located outside the state before his ale or malt liquor may be imported into Texas or offered for sale in Texas. Sec. 13.02. FEE. The annual state fee for a nonresident brewer's permit is $1,500. Sec. 13.03. NONRESIDENT SELLER'S PERMIT REQUIRED. The holder of a nonresident brewer's permit is also required to hold a nonresident sellers permit. Sec. 13.04. USE OF FACILITIES. (a) An entity or successor to an entity that on May 1, 2005, held a brewer's or nonresident brewer's permit or whose brand was legally sold in this state may contract with the holder of a nonresident brewer's permit for the use of the permit holder's brewing facilities or to provide brewing services. (b) An entity or successor to an entity that on May 1, 2005, held a brewer's or nonresident brewer's permit or whose brand was legally sold in this state is not required to own its brewing facilities. (c) More than one nonresident brewer's permit may be issued for a single premises if the permit holder for the premises has contracted with an entity or successor to an entity that on May 1, 2005, held a brewer's or nonresident brewer's permit or whose brand was legally sold in this state for the use of the permit holder's brewing facilities or to provide brewing services. (d) This section does not authorize a person acting as an agent for a brewery located outside of this state to contract with the holder of a nonresident brewer's permit to brew ale or malt liquor on the person's behalf. A contract described by this subsection may only be entered into by the holder of a noiuts'dent brewer's permit and another person holding a permit under this code. CHAPTER 14. DISTILLER'S AND RECTIFIER'S PERMIT(D) SPE. 14.01. AUTHORIZED ACTIVITIES_ (a) The holder of a distiller's and rectifier's pent may: (1) manufacture distilled spirits; (2) rectify, purify, and refine distilled spirits and wines; (3) mix wines, distilled spirits, or other liquors; (4) bottle, label, and package the permit holder's finished products; (5) sell the finished products in this state to holders of wholesaler's permits and to qualified persons outside the state; (6) import distilled spirits, to be used only for manufacturing or rectification purposes, from holders of nonresident seller's permits and Texas Alcoholic Beverage Code (2011) 39 of the holder of the winery permit or from another location where the holder of a winery permit may legally store wine to a destination out of this state, if the common carrier may otherwise legally transport wine and the holder of the winery permit furnishes to the commission any documentation required by the commission concerning the transportation and the receipt of the wine at the destination out of this state. CHAPTER 42. PRIVATE CARRIER PERMIT (0) Sec. 42.01. AUTHORIZED ACTIVITIES. (a) The holder of a private carrier permit who is also a holder of a brewer's, distiller's and rectifier's, winery, wholesaler's, class B wholesaler's, or wine bottler's permit may transport liquor from the place of purchase to the holder's place of business and from the place of sale or distribution to the purchaser in a vehicle owned or leased in good faith by the holder or in a vehicle owned or leased by the holder of a permit issued under Chapter 35 if the transportation is for a lawful purpose. (b) The holder of a private carrier permit may transport liquor from one wet area to another wet area across a dry area if that course of transportation is necessary or convenient. Sec. 42.02. FEE. The annual state fee for a private carrier permit is $30. Sec. 42.03. APPLICATION OF MOTOR CARRIER LAWS. A person desiring to transport liquor for hire shall comply with the provisions of the motor carrier laws when engaging in the business of transporting liquor for hire. Sec. 42.04. VEHICLES USED FOR TRANSPORTING LIQUOR. (a) Each application for a private carrier permit must contain a full description of the motor vehicles used by the applicant for transporting liquor as well as all other information required by the commission. (b) Each vehicle used for the transportation of liquor within the state shall have printed or painted on it the designation required by the commission. (c) A permittee may not transport liquor in any vehicle which is not fully described in his application for a permit. (d) A holder of a winery permit is exempt from the requirements of this section for the transportation of its wine. Sec. 42.05. TRANSPORTATION OF ALE AND MALT LIQUOR: RULES. The commission may issue rules prescribing the manner in which ale and malt liquor may be transported in the state by private carrier's permittees who also hold class B wholesaler's permits. CHAPTER 43. LOCAL CARTAGE PERMIT (E/ET) Sec. 43.01. AUTHORIZED ACTIVITIES. (a) A warehouse or transfer company that holds a local cartage permit may transport liquor for hire inside the corporate limits of any city or town in the state. (b) A package store, wine only package store, or local distributor's permittee who also holds a local cartage permit may transfer alcoholic beverages in accordance with Sections 22.08, 23.04, and 24.04 of this code. Sec. 43.02. FEE. The annual state fee for a local cartage permit is $30. Sec. 43.03. PERMIT REQUIRED. No person may transport liquor for hire inside a city or town unless he holds a local cartage permit. No person may transport liquor in violation of the motor carrier laws of this state. Sec. 43.04. ELIGIBILITY FOR PERMIT. The commission may issue a local cartage permit to a warehouse or transfer company or to a holder of a package store, wine only package store, or local distributor's permit. Sec. 43.05. VEHICLES USED BY PERMITTEE. (a) No local cartage permittee may transport liquor unless: Texas Alcoholic Beverage Code (2011) 78 Industry Trends Texas Growth Monitored 1 �Gv.Y ��2��Pi1/L � G�'t�G'G ��L�f•A!'bO �G �zit/�r� ti In the past five years, the TABC has observed significant growth in the number of Texas craft breweries, Texas distilleries, and alcoholic beverage products. This growth is due to expanding markets and increased consumer demand for craft products. Texas Graft Breweries A craft" brewery is defined as a small, independent manufacturer of malt beverage products that is no more than 24 percent owned by another alcoholic beverage company that is not itself a craft brewer, and that produces less than 75,000 barrels of malt beverage products (beer, ale, malt liquor, etc-) per year. Included in this definition are those businesses that the American Brewer's Association defines as brewpubs, microbreweries (production 15,000 barrels or less), and regional breweries with production between 15,000 and 75,000 barrels. While the number remains relatively small, the number of craft brewers has more than doubled growing from a total of 41 in ,lune 2008 to a total of 86 by mid-June 2012. Of these businesses, 44 were brewpubs, operating with a mixed beverage permit, a beer license, or a beer and wine permit In-state Cram arewene s June 2008 - June2012 s 3'] til L i60J- 2-008 ... _... 2Qti4 2010 2011 2612 as the business' primary license or permit- Brewpubs also have the option of selling food in addition to alcoholic beverage products directly to consumers. The remaining 42 would be best described as "small breweries# whose products can be sold either through licensed wholesalers and/or distributors, or directly to members of the retail tier, but not consumers_ Texas Craft Breweries By License Type June 2DI2 At the current time, the composition of the craft brewer segment of the industry is as shown in the above chart. Brewpubs (BP) are the largest group (44 each)_ Those holding only Brewer's Permits (B) are the second largest group (25 each), and an additional 15 small brewers hold both a Brewer's Permit (B) and Manufacturer's License (BA)_ Small brewers holding only Manufacturer's Licenses for beer account for the remainder of the state's craft brewers (two each)- HOUSE RESEARCH ORGANIZATION T��� ocus REPORT June 12, 2012 Small craft prod ucers seek alcohol regulation revisions Growth in craft brewing An increasing number of proposals have called for changing the and distilling state's three-tier system for manufacturing, distributing, and selling alcohol to allow small producers of specialty beer and distilled spirits to Current law and the operate outside of the system. Many of these proposals would expand the three-tier system ways small brewers, brewpubs, and craft distillers could get their products to consumers and are modeled on current exceptions to the three-tier Exceptions to the system for Texas wineries. During the 2011 regular session, several such system bills were filed, but no major change enacted. Distillers Other changes in the state's regulation of alcohol are occurring through court rulings. These rulings often focus on the Commerce Clause Legal challenges to of the U.S. Constitution, commercial speech issues, and the broad powers state alcohol regulations that were given to states to regulate their internal alcohol markets after Prohibition was repealed Recent rulings have allowed out-of-state Proposals Texas, producers and retailers to ship into states formerly barred to them. Other other States cases have altered the way marketers advertise alcohol, broadening Debate the definition of acceptable content from what statutes and regulations previously allowed Commercial speech Discussions about changing the Alcoholic Beverage Code to allow litigation small craft producers more direct access to consumers are expected to continue leading up to the 2013 regular legislative session_ This topic, among others, is being discussed this interim by an Alcoholic Beverage Code working group that includes legislative staff, industry, and state agency representatives. Its goal, according to its mission statement, is This report to {`identify areas of consensus and concern regarding possible explains the three-tier changes to the Texas Alcoholic Beverage Code." system of alcohol distribution in Texas and reviews proposals to allow small producers of specialty beer and distilled Growth in Craft brewing and distilling spirits to operate under exceptions to the system. Efforts to revise the alcohol regulatory system have intensified as the number of craft brewers and distillers in Texas and their production have increased. While craft brewers and distillers can be defined various ways, under most definitions these manufacturers of Number 82-9 Page 2 alcoholic beverages are small and independent and may be required to use certain manufacturing practices. The number of state permits for microbreweries, defined as those producing less than 75,000 barrels of beer or ale annually, grew from one in 1993 to 37 at the end of 2011, _according to the Texas Alcohol Beverage Commission (TABC) and the Texas Craft Brewers Guild. These breweries produced 133,000 barrels of beer in 2011, a 46 percent increase from 2010. Brewpub licenses increased from one in 1993 to 41 by the end of 2011. As of mid -2012, there were 29 active permits for Texas liquor distilleries, up from three issued permits in fiscal 2004. Twelve of these distilleries were producing. Production from Texas distilleries increased from 580,000 gallons in fiscal 2008 to 1.39 million gallons in fiscal 2011. Current law Three-tier system. Following the repeal of Prohibition in 1933, the states created systems to regulate the production and sale of alcohol in the United States. Texas implemented a three-tier system that prohibits close ties between manufacturers and retailers by requiring retailers to buy their product from distributors, not directly from manufacturers. The TABC oversees the three- tier system and licenses businesses in each tier. Manufacturers of alcoholic beverages, the first tier, can produce alcohol and sell it to those in the second or middle tier, wholesalers and distributors. Those in the middle tier buy alcohol from manufacturers and sell it to retailers. Licensees in this middle tier that handle liquor and wine are called wholesalers, and those that handle beer are called distributors. Retailers are the third tier and sell alcohol to consumers. Retailers can be package stores, grocery stores, convenience stores, bars, or restaurants. Permit and license holders in one tier cannot have financial ties or certain familial ties to those in other tiers. Supporters of the three-tier system say it strikes an appropriate balance between control of and access to alcohol. The three tiers prevent "tied houses," a term that House Research Organization refers to overlapping ownership between entities involved at different levels of the alcoholic beverage industry. Tied houses were blamed for many of the social and market ills associated with alcohol before Prohibition. Tied houses could aggressively promote alcohol and were difficult to regulate and tax. Some engaged in illegal sales practices, were associated with organized crime, and promoted monopolistic behavior, according to their critics. By preventing the vertical integration found in tied houses and requiring that alcohol pass through the three-tier system, the state ensures that alcohol is sold only to regulated and permitted retailers that it can oversee, say supporters of the system. Critics of the three-tier system say it imposes an artificial regulatory structure onto the market that stifles innovation, drives up prices, restricts consumer choice, and inhibits economic development. The problem of alcohol abuse is better addressed through education, treatment, deterrence, and appropriate law enforcement activity than by artificially restricting consumers' access, critics say. The Three-tier system for alcohol distribution Manufacturers Breweries, wineries, distilleries Distributors Retailers Beer distributors, wine wholesalers, Bars, restaurants, grocery and liquor wholesalers convenience stores, package stores House Research Organization three-tier system also fails to prevent monopolistic practices in the brewing industry, which is dominated by a small number of large, multi -state brewers that provide the vast majority of the country's beer. Other Western countries allow manufacturers to sell directly to retailers and some even allow tied houses. These practices, according to critics of the three-tier system, allow smaller brewers to have more direct access to consumers and allow them to better compete on product quality and price. Exceptions to system for small brewers, brewpubs, and wineries Exceptions to the three-tier system allow wineries and brewpubs — under limited circumstances — to sell their products directly to consumers without going through a licensed distributor or wholesaler. Small brewers also have an exception to the three-tier system allowing them to sell directly to retailers without going through distributors, but not directly to consumers. Brewers and brewpubs. A maker of malt beverages must have a license as a brewer, manufacturer, or brewpub. Brewers, manufacturers. Producers of malt beverages can hold brewers or manufacturers licenses or both. Brewers, under chapter 12 of the Alcoholic Beverage Code, can produce ale or malt liquor with more than 4 percent alcohol by weight. Manufacturers, under chapter 62, can produce beer, which is defined as a malt beverage with up to 4.0 percent alcohol by weight. Large producers are held to the requirements of the three-tier system, making malt beverages and selling them to distributors who sell to retailers who sell to consumers. Small producers, defined as those making 75,000 or fewer barrels of beer or ale annually, can work within the three-tier system but also may self -distribute by selling directly to retailers without going through distributors. Brewers and manufacturers cannot sell to the ultimate customer but can give away their product under certain conditions. Brewpubs. Holders of brewpub licenses are allowed to manufacture, brew, bottle, can, package, and label malt liquor, ale, and beer under the guidelines in chapter Page 3 Distillers Distillers operate under the three-tier system and are governed by Chapter 14 of the Alcoholic Beverage Code. They may: • manufacture distilled spirits; • purify, refine, and rectify (make more highly concentrated) distilled spirits and wines; • mix wines, distilled spirits, and other liquors; • bottle, label, and package their products; • sell products to holders of Texas wholesaler's permits or qualified entities outside of Texas; and • import distilled spirits for manufacturing or rectifying While the debate in this report centers on proposals made by craft brewers and brewpubs, Texas makers of craft distilled alcohol make many of the same proposals. The Distilled Spirits Association of Texas, a group of Texas craft distillers, reports that many of its members would like to see sales for off -premises consumption allowed at the distillery, changes to the public tasting rules for their product at package stores, and distilleries allowed to buy finished and unfinished malt -beverage products directly from brewers for distillation. The Texas craft distilling industry is much smaller than the brewing industry but also growing. In mid -2012, TABC reported 29 permits for distilleries in Texas, up from three in fiscal 2004. During the 2009 regular session Texas gave distilleries authorization similar to breweries and wineries to serve free samples of their product on their premises. 74 of the Alcoholic Beverage Code. Brewpubs must hold a retailer's permit, placing them in a different tier than regular manufacturers or brewers. Brewpubs are allowed to sell or give away their product on their premises for on- or off -premise consumption. However, brewpubs cannot sell their beverages to distributors or to Page 4 other retailers for resale. They must operate in areas where it is legal to sell alcohol and may sell food on their premises. Brewpubs' annual production of malt liquor, ale, and beer is capped at 5,000 barrels for each licensed brewpub. Like out-of-state brewers and manufacturers, out-of-state brewpubs are allowed to sell their products to Texas wholesalers and distributors, who can sell them to Texas retailers for consumer purchase. These out-of-state brewpubs must have a nonresident brewer's permit or a nonresident manufacturer's license as well as authorization from their home state's regulatory agency. House Research Organization Wineries. Wineries are allowed to make, bottle, label, and package wine and to sell it to wholesalers or retailers and — with restrictions — to consumers, governed by chapter 16 of the Alcoholic Beverage Code. Sales to consumers may be for on - or off -premise consumption, but sales for off -premise consumption may not exceed 35,000 gallons Legal challenges to state alcohol regulations Advocates of changing alcohol regulation and control .in states have, in addition to legislative proposals, turned to litigation. Much of this litigation involves the interplay of state laws and the U.S. Constitution, including the 21st Amendment and the Commerce Clause. The 21st Amendment to the U.S. Constitution, which repealed nationwide Prohibition, often is cited in these cases because it is a broad grant of powers to the states to regulate their domestic alcohol markets. Section 2 of the amendment states. `The transportation or importation into any State_ for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited" The amendment is the only specific mention of a consumer good in the U.S. Constitution. Challenges to state restrictions on the importation of alcohol into a state often invoke the Commerce Clause, which grants Congress exclusive authority to regulate interstate commerce. This exclusive authority means states may not engage in economic protectionism that benefits m state economic interests by burdening out-of-state competitors. In 2005, the U.S. Supreme Court ruled in Granholm v Heald, 544 U.S. 460, that state laws that permitted in-state wineries to ship wine directly to consumers but prevented out-of-state wineries from doing so were unconstitutional. States had defended laws like the ones invalidated in Granholm on the grounds that the 21st Amendment was a broad grant of power that allowed states full control over the importation of alcohol. Courts .have held that the 21st Amendment does not automatically trump the Commerce Clause. Instead, courts may tolerate a statute that has the effect of discriminating against out-of-state competitors if the state can articulate a legitimate public interest under the 21st Amendment. Courts have identified as legitimate public interests the promotion of temperance and prevention of underage drinking, the prevention of monopolies, the combating of organized crime in the alcohol industry, and administrative concerns such as taxation and ensuring product quality_ Economic protectionism is not a legitimate public interest under the 21st Amendment, according to court rulings. Many challenges hinge on how well the state is able to articulate a statute's legitimate public interest and how well that interest is grounded in the 21st Amendment Anticipating the Granholm decision, the 79th Texas Legislature in 2005 enacted SB 877 by Madla, regulating and allowing out-of-state wine shipments into Texas. Other states also have reacted to Granholm and similar court decisions by opening up their domestic alcohol markets to shipments by out-of-state producers. House Research Organization annually. Wineries may operate in dry areas and can hold festivals on their premises and sell wine off - premises with a festival permit. Wineries also may: • ship wine directly to consumers, in both wet and dry areas, with shipments to the same customer limited to no more than nine gallons in a calendar month or 36 gallons in a 12 -month period; • give away wine for consumption on or off their premises; • sell wine to qualified persons or businesses outside the state; • blend wines; • sell wine in Texas to, or buy wine from, permit holders who can sell wine, including wholesalers, wineries, and wine bottlers; and • manufacture fruit brandy and use it to fortify wine, sell that brandy to other wineries, and import or buy fruit brandy to fortify wines. Wineries may obtain a Wmery Festival Permit allowing sales at civic or wine festivals, farmer's markets, celebrations, or similar events. Brewers and distillers do not have a similar festival permit allowing them to sell directly to consumers. If beer is served at a festival type event, it must be done by someone holding a retailer's permit and must be purchased through the three-tier system. Other states Most states have three-tier systems similar to the one in Texas. Several states regulate the sale of alcohol through a variation on the three-tier system called "alcoholic beverage control." Alcoholic beverage control states maintain a government monopoly on one or more tiers of the alcohol distribution system. Some of these states also directly control some aspects of the retail tier through government-owned stores. Alcoholic beverage control states include Alabama, Idaho, Iowa, Maine, Michigan, Mississippi, Montana, New Hampshire, Ohio, Oregon, Pennsylvania, Utah, Vermont, Virginia, West Virginia, and Wyoming, according to the National Alcoholic Beverage Control Page 5 Association. Montgomery County in Maryland also is an alcoholic beverage control jurisdiction. Washington state is an exception to the three-tier system. In 2011, voters approved a referendum that ended a state -operated retail system of liquor stores and now allows private entities to sell and distribute spirits and certain large retailers to buy from manufacturers and sell directly to consumers, bypassing distributors. Texas proposals Several bills to allow craft brewers and brewpubs to operate further outside of the three-tier system have been filed in recent Texas legislative sessions, but none has been enacted. Proposals made during the 82nd Legislature's 2011 regular session would have allowed certain small brewers to sell directly to the public or conduct tours of their facilities for a fee and after which beer could be provided to the consumer for off -premises consumption. Another proposal would have allowed brewpubs to reach consumers by selling to distributors or wholesalers who then could have sold their products to retailers. Proposals by Texas' small brewers and brewpubs to alter Texas' three-tier alcohol regulation system center on expanding the ways these producers can sell their products to consumers. Proposals include allowing: small brewers to sell directly to consumers for off -premise consumption through sales at a brewery; brewpubs to package and sell their products to distributors; and brewpubs to sell directly to bars, restaurants, and stores. Debate The debate over giving craft brewers and brewpubs more direct access to consumers by allowing them to operate outside of the current three-tier system centers on whether: • the exemptions from the three-tier system in place for wineries are appropriate for craft brewers and distillers; Page 6 • small producers should be regulated differently than large producers; and the potential economic development from loosening the three-tier structure outweighs the benefits of the current market structure. Supporters of small and craft brewer exemption say that brewers should have opportunities similar to those of wineries to reach customers directly, that as small businesses brewers should have exemptions from the three-tier system so that they can grow and then compete within the system, and that giving brewers more ways to reach consumers would spur economic development. Extending wineries'exemptions. Exceptions to the three-tier system allow wineries to sell limited quantities directly to consumers, and it is unfair to treat those brewing craft beer differently. Wmeries currently have multiple ways to reach consumers. They are allowed to sell their products to wholesalers, retailers, and consumers who may drink the wine on or off the wineries' premises. Wineries may operate in dry areas and sell wine to consumers at wine festivals, farmers markets, and other events. Wineries also may sell wine over the phone and the Internet and ship wine to consumers, all of which are prohibited to brewers and distillers. Wineries also benefit from state marketing and tourism programs created specifically for them. In contrast, makers of beer and other malt beverages have limited ways to reach customers. These producers must choose between being a manufacturerlbrewer, with no way to sell directly to consumers, and being a brewpub, with very limited ways to sell to consumers. Manufacturers and brewers must operate under the three-tier system, except for those producing less than 75,000 barrels annually, who may sell directly to retailers. Unlike wineries, manufacturers and brewers cannot sell on their premises directly to the ultimate consumer, and they cannot operate in dry areas. While brewpubs may sell to consumers on their premises, they cannot meet consumer demand by selling their product off-site. Proposals to allow brewpubs to reach customers by selling to distributors would recognize that brewpubs already act as producers and would extend to brewpubs House Research Organization this basic function of a producer. This change would respect the three-tier system by having brewpubs go through distributors to get their products to consumers. It also would give Texas brewpubs the same right that some out-of-state brewpubs have to sell to Texas wholesalers and distributors. Small adjustments to the three-tier system, such as allowing sales at breweries, could be made without affecting the rights of out-of-state producers or upsetting the Texas market. Treating small producers differently. It is appropriate to give small, craft brewers and brewpubs exemptions from parts of the three-tier system so that they can grow large enough to compete with large, established producers. Craft brewers often are small Texas businesses that have difficulty getting a foothold in the market when competing against large, established, national brands with multi -state brewery systems. Any exemptions from the three-tier system could be applied only to small brewers and brewpubs until they grew large enough to compete in the three-tier system_ More than half of the states in the United States currently allow brewpubs to enter into the three-tier distribution system and allow brewers to have some kind of on-site sales to consumers, according to the Texas Craft Brewers Guild. Making similar changes to the way Texas regulates small producers would be in line with similar regulations in other states. Small craft brewers often are not in a position to create the consumer demand for their beer that gives distributors and retailers an incentive to purchase it. To help overcome this disadvantage, small breweries should be able to sell to consumers who go to brewery premises, and brewpubs should be able to sell their products to distributors. This would spur consumer demand outside of the breweries and brewpubs, helping these small businesses compete within the three-tier system. This would allow the marketplace — rather than government regulation — to help determine the success of a brewer or brewpub. Some argue that small producers of all types of alcohol — not just craft brewers — should be allowed greater access to consumers. If the goal is to help small businesses, then small producers of all types of alcohol — wine, beer, and spirits — would be worthy of assistance. House Research Organization A policy limiting any change in the three-tier system to small producers would not interfere unduly in the state's alcohol market since small producers are still only a fraction of the total market. Certain types of changes, such as allowing sales at breweries or distilleries, might not trigger federal Commerce Clause requirements that they be extended to out-of-state producers because the changes would favor market actors physically present in Texas, not deny access to out-of-state businesses. If the federal Commerce Clause required that such a policy also be extended to out-of-state producers, the policy would apply only to small producers in those states as well, making any effect on the Texas market minimal. (For an explanation of the Commerce Clause and alcohol regulation, seepage 4) Economic development. Allowing craft brewers more direct access to consumers would promote growth m the brewing industry and spur much-needed economic development in Texas. Direct access to consumers helped the Texas wine industry grow from 79 wineries in 2004 to 232 in 2011, and brewers could see similar growth from a change in regulation. A study done for the Texas Craft Brewers Guild reported that in 2011 Texas brewpubs and small craft brewers, defined as those making 75,000 barrels or less annually, had a total economic impact of $608 million while employing 1,244 workers and paying $16 million in state and local taxes. The study estimates that if brewpubs and small craft brewers had better access to consumers and followed the same trajectory the wine industry did from 2001 to 2009 with such access, brewers could generate an economic impact for the state of about $5.6 billion. The economic development resulting from increased direct access to consumers for craft brewers could be even greater than the development seen after wineries gained more consumer access. Texans consume ahnost 19 times more beer than wine, according to a study by the Texas Craft Brewers Guild. All segments of the beer industry could benefit from increased craft beer sales spurred by more consumer access. Breweries and brewpubs could increase production, hire more employees, and increase capital investment. Craft brewers are major job creators. Smaller brewers account for 80 percent of the brewing jobs in the United States, according to The Brewers Association. Reducing the restrictions that small craft brewers operate under will allow them to create even more jobs as their business grows. As the overall market Page 7 for beer expands, business for retailers, distributors, and other beer makers also would expand. Other businesses and the state also would benefit. Growth in the craft beer industry could increase brewery tourism and benefit other nearby businesses, such as restaurants. Craft brewers also pay excise, property, and sales taxes, so as craft breweries and brewpubs grew, tax revenue would increase. If increased access to consumers helped individual brewers grow to more than $1 million in revenue, they would become eligible to pay the margins tax. Commercial speech litigation Challenges to alcohol regulation, in addition to those under the 21 st Amendment and the Commerce Clause of the U -S. Constitution, have included litigation regarding the First Amendment and commercial speech. Alcohol producers and retailers in Texas recently have challenged alcohol statutes and rules that regulate the commercial speech of participants. In December 2011, U.S. District Judge Sam Sparks found several Texas Alcoholic Beverage Commission (TABC) regulations on advertising and labeling of alcoholic beverages to be unconstitutional restrictions on commercial speech and found others unconstitutionally compelled speech. Producers bringing the lawsuit argued that certain TABC statutes ',prohibited breweries and distributors from telling customers where their products can be bought; mandate the use of inaccurate statutory definitions of `beer,' `ale,' and `malt liquor' to describe malt beverages; and prolnbit advertising the alcoholic content of brewery products and using words in advertising and labeling that suggest alcoholic strength." The court, in Authentic Beverage Co. v TABC, No. A -10 -CA - 710 -SS, 2011 WL 6396530 (W.D. Tex_ Dec. 19, 2011), ruled in favor of the producers on many of the commercial speech grounds, allowing retailers more leeway in how they advertise. Page 8 While the .number and size of small craft brewers are growing in Texas, they are not expanding at the same rate as similar brewers in other states that allow more direct access to consumers. Small craft brewers in Texas produce only 0.7 percent of all beer consumed in Texas, according to the Texas Craft Brewers Guild. However, in Oregon craft brewers produce 30 percent of all beer consumed in that state, according to the Oregon Brewers Guild. Perceived benefits from the three-tier system should not stand in the way of supporting economic development. These proposals would not undo the three- tier system, but instead help it evolve. Opponents of small and craft brewer exemptions say that giving wineries direct access to consumers had negative consequences and so should not be duplicated for brewers, that Texas already has adequate and reasonable exemptions to the three-tier system for small brewers, and that potential economic development benefits would not outweigh the drawbacks of weakening the three-tier system by creating special exemptions for brewers. Expanding current exemptions. The state's abandonment of the three-tier system to allow Texas wineries to sell directly to consumers has resulted in unintended negative consequences and should not be duplicated for brewers or distillers. Loosening the restrictions of the three-tier system for wineries set off a decade of litigation, resulting in out-of-state wineries being able to ship directly to Texas consumers. This produced a host of problems, including unregulated sales that are challenging to tax and regulate. Both consumers and businesses continue to chafe under a patchwork of court decisions that fail to provide a coherent regulatory scheme for sales of wine. Changes to the three-tier system to allow Texas brewers and distillers direct access to consumers could result in the same type of regulatory and marketplace challenges. Court rulings have illustrated that making any changes to the three-tier system for in-state brewers or brewpubs most likely would require accommodations for out-of-state producers. Other changes, such as expanding self -distribution options for brewpubs, would be unfair to large Texas brewers who still would have to operate under the three-tier system. House Research Organization Treating small producers differently Texas already has reasonable exemptions to the three-tier system for small brewers and brewpubs. Expanding these exemptions is unnecessary and would discriminate against other brewers. Manufacturers and brewers currently have an exception to the three-tier system that adequately supports them when they are small, emerging businesses. Manufacturers and brewers who produce less than 75,000 barrels annually can sell directly to retailers without going through wholesalers or distributors, and this accommodation is enough to help small Texas breweries grow before they are held to the three-tier system. At least one Texas brewery, the Spoetzl Brewery that produces Shiner beers, has grown large enough while taking advantage of this exception to now operate within the three-tier system. Brewpubs are allowed to sell directly to consumers because they are licensed as retailers. This appropriately allows them to make and sell beverages and food for on-site consumption with a limited exception for customers to carry away a small amount. These features are essential to the nature of a brewpub and should be maintained, not diluted or comingled with the features of manufacturers and brewers by creating exemptions to the three-tier system. Brewpubs that want to make beer and sell it off-site should obtain a manufacturer's license or brewer's permit, just like other producers. It is unnecessary to give exceptions to the three-tier system to all small producers of alcohol. Texas has no shortage of small, independent alcohol producers, and growth is occurring with all types of producers under the limited, reasonable exceptions allowed now. It would be difficult to develop a fair system helping a limited number of producers that did not hurt other producers. For example, creating a permit for small producers as defined by a set limit on production would automatically exclude other producers who may be just as worthy of assistance. A set limit on production also might serve as a deterrent to growth. Economic development. Possible economic development benefits from weakening the three-tier system would not outweigh the benefits of the current market structure. These benefits include preventing vertical integration of the industry. Vertically integrated House Research Organization businesses, such as tied houses, tend to operate primarily on alcohol sales, to the exclusion of food, diverse drink options, and even social activities. Historically, the cheaper alcohol that tied houses could offer was thought to contribute to the saloon culture and public drunkenness that were perceived as social ills requiring prevention. This became a primary argument for Prohibition. Breaking the industry into three tiers has allowed bars, brewpubs, and other retailers to focus on overall customer experience, not simply on pushing alcohol consumption. This has led to a measureable decrease in alcohol abuse. A well regulated, three-tier system has worked to contain the dangers of alcohol abuse and has created a system of checks and balances for tracking alcohol sales and collecting alcohol taxes. As producers gain more direct access to consumers and the three-tier system is eroded, these benefits are diluted. It is unclear whether the economic impact of the growth in the wine industry after the 2003 changes in Texas statutes can be used to accurately project growth if changes were made to laws governing breweries and brewpubs_ Growth in the wine industry began almost HOUSE RESEARCH ORGANIZATION Steering Committee: Bill Callegari, Chairman Jose Menendez, Vice Chairman Rafael Anchia Drew Darby Joe Deshotel Harold Dutton Susan King Tryon Lewis Eddie Lucio III Geanie Morrison Elliott Naishtat Rob Orr Joe Pickett Ralph Sheffield Todd Smith Page 9 a decade ago under different economic circumstances. Wine follows a different economic model from beer, with different economic inputs, differences in the perishability of the product, and different consumer demands and expectations. In addition, brewpubs already act as retailers and sell directly to consumers in a manner similar to wineries. Projections based on growth in the wine industry may not be applicable to potential brewpub growth. Breweries and brewpubs are successfully competing under the current structure of the three-tier system and showing impressive economic growth. For example, from 1993 to 2011, the number of small breweries in Texas has grown from two to 37. The Spoetzl Brewery has been successful enough to graduate from the small brewery category to fully operate within the three-tier system. The strong growth in these industries in the past decade illustrates that the system is working well to balance economic development and appropriate regulation. — by Kellie Dworaczyk and Tom Howe John H. Reagan Building Room 420 P.O. Box 2910 Austin, Texas 78768-2910 (512) 463-0752 www. hro. house. state. tx. us Staff: Tom Whatley, Director,• Laura Hendrickson, Editor, Elizabeth Paukstis, Associate Editor/Analyst, Rita Barr, Office Manager/Analyst; Catherine Dilger, Kellie Dworaczyk, Tom Howe, Blaire Parker, Research Analysts t- ®m ...r,� CM ENO d 'f L�,l� CL 4b pA LU rc ccs Uz ° -i z<coo cr 4aj �-�- .® s >L'i IL Z 4 �,Wyt o-ow�i 6 €r� Loo '� 0 - �u cli w � z � Cl- €) wLL A LLId�uje $mowZ CO CL x x <"King z Cdd i w Z)zi F :.19 ize LJJ -j 71 IS' tN-'00 m,7 1 # 4 t- f W ry cci LW 0 z LW ON w W .to4 0 U7Lj ... - _. r z--• l fes- Q..._...__- Z C t c3`a i � C7 -1 F- LLJ/ -- ---- -.r.p.' Fn cc Li z 9 < 9Q F W Lbi 1 1' a z< L a(n © z 9 C, —x .ONINOZ a/7, 69.6Z G M A,Z9,6Z.00 N ---x x x x x— x 'V 0MG �JV3�7 - @ LD �t .,. . .. , .. :A..�,- .. 0 L V t LJ - w : 4,. CL __ ... .. x N Q - O . u ` f > p CID , n ca �� 00 _ � e5-,L� i I ^ x coH :in z0 q� 0 x 00 i ::, .. .., . 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