HomeMy WebLinkAboutAM2013-06MEMO TO: HONORABLE MAYOR, CITY COUNCIL MEMBERS AND THE
PLANNING AND ZONING COMMISSION
ROM: BRUNO RUMBELOW, CITY MANAGER P_
SCOTT WILLIAMS, DEVELOPMENT SERVICES •.
MEETING DATE: DECEMBER 17, 2013
SUBJECT: AM1 3-06—AMENDMENTS TO SECTION 42, SUPPLEMENTARY
DISTRICT REGULATIONS OF THE ZONING ORDINANCE AND
CHAPTER 4, ALCOHOLIC BEVERAGES OF THE CODE OF
ORDINANCES RELATIVE TO THE WINE AND BEER
RETAILER'S PERMIT (BG PERMIT)
RECOMMENDATION:
City Council and the Planning and Zoning Commission to consider an amendment to
Section 42, Supplementary District Regulations of the zoning ordinance, and to Chapter 4,
Alcoholic Beverages of the Code of Ordinances relative to the Wine and Beer Retailer's
Permit (BG permit), and take any necessary action.
The City's Local Option Elections in 1973 and 1993 relative to the sale and consumption of
alcoholic beverages currently allows:
® The legal sale of beer and/or wine for off -premise consumption
® The legal sale of beer, wine, and mixed beverages for on -premise consumption
Section 42, Supplementary District Regulations of the zoning ordinance and Chapter 4,
Alcoholic Beverages of the Code of Ordinances also requires holders of a mixed beverage
permit or private club permit to have at least fifty (50) percent of their gross sales derived
from food.
During the last Texas legislative session (83rd Legislature) the Texas Alcoholic Beverage
Commission Code relative to Chapter 25, Wine and Beer Retailer's Permit (BG permit) was
amended as part of House Bill 2818. Although this permit has been in existence for some
time, the specific amendment authorizes cities to consider this permit, if the legal sale of
beer and wine for off -premise consumption and the legal sale of mixed beverages for on -
premise consumption have been previously authorized, without going through the time and
expense to hold another local option election. Specifically this BG permit allows for both
on- and off -premise consumption of beer and wine and relative to the City of Grapevine,
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requires the holder of a BG permit that operates within a restaurant to meet the regulations
that are currently in place for on -premise alcohol beverage consumption.
Gina Puente, the owner/operator of La Buena Vida Vineyard (416 East College Street) has
recently surrendered her state issued winery permit and initially was proposing to transition
the property from a winery to a full-service restaurant with on -premise alcohol beverage
sales limited to wine only. This approach however would not allow for off -premise sales of
wine. With the recent amendment previously mentioned to the Texas Alcoholic Beverage
Commission Code relative to the Wine and Beer Retailer's Permit, Ms. Puente would like
to pursue the BG permit since it will allow her to operate in a fashion as if she were still a
winery, with both on- and off -premise consumption of beer and wine only but with the
additional stipulation that fifty (50) percent of the gross sales from the business must be
derived from food.
If there is a desire by Council to make the BG permit accessible to existing and future
restaurant operators then Section 42, Supplementary District Regulations of the zoning
ordinance and Chapter 4, Alcoholic Beverages of the Code of Ordinances must be
amended to authorize use of this permit. Staff presented to Council during a work session
on December 3 proposed amendments to codify the Wine and Beer Retailer's Permit.
Based on direction given to staff from that work session additional wording has been
placed within Section 42, Supplementary District Regulations prohibiting the holder of the
Wine and Beer Retailer's Permit from offering any other alcoholic beverage on site other
than beer and/or wine and requiring holders of this permit within the "GV" Grapevine
Vintage District or the "CBD" Central Business District to offer wine by the bottle or case for
purchase for off -premise consumption. The permit will require consideration and approval
by the city council through the conditional use process.
Besides Ms. Puente, Gary Farina of Farina's Winery and several other restaurant operators
have inquired about pursuing this permit. In addition, the city attorney has confirmed with
TABC that holders of the BG permit can utilize the word "winery" or any of its derivatives in
their business name and if necessary this can be made a specific part of zoning approval.
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OA,
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Section 42. Supplementary District Regulations
B. SALE OF ALCOHOLIC BEVERAGES:
Notwithstanding any other provision of this Ordinance the storage,
possession, sale, serving, or consumption of alcoholic beverages, except for
the consumption of the occupants or owners of the premises and their
guests at no charge, when permitted by the laws of the State of Texas, shall
be regulated and governed by the following use regulations and
requirements:
DEFINITIONS: For the purpose of this Ordinance, the following words and
phrases shall have the meanings ascribed to them as follows:
(a) ALCOHOLIC BEVERAGE means alcohol, or any beverage containing
more than one-half of one percent of alcohol by volume, which is
capable of use for beverage purposes, either alone or when diluted.
(b) RESTAURANT shall mean a restaurant or eating establishment
whose gross sales in Grapevine from food on an annual basis at the
location represent at least fifty (50) percent of total sales with a
Conditional Use as set out in Section 48.
2. The storage, possession, sale or serving of alcoholic beverages by any party
for either on -premise or off -premise consumption, shall be illegal unless on
property zoned specifically for that purpose as a Conditional Use in
accordance with and pursuant to Section 48 of this Ordinance.
3. With the exception of wineries and wine tasting rooms, no party shall sell
or serve alcoholic beverages for on -premise consumption as the holder of a
duly issued Texas Alcohol Beverage Commission permit allowing on -
premise consumption except in a
restaurant or on the premises of an entity whose principal business is
transporting of the general public and is operating pursuant to a certificate of
public convenience and necessity issued by a federal or state regulatory
body with a Conditional Use Permit in accordance with and pursuant to
Section 48.
4. The party or entity operating a restaurant or private club that permits the sale
of alcoholic beverages for on -premise consumption shall on an annual basis,
no later than the thirtieth day of the month following each twelve (12) months
of operation, file with the City Secretary an affidavit, on an officially approved
form provided by the City Secretary, that reflects gross sales for the
preceding twelve (12) months breaking down the sales of food, alcoholic
beverages and other items. The party shall also file on an annual basis; at
the same time the affidavit is filed, a copy of the filing supplied to the State of
Texas for sales tax and alcoholic beverage tax purposes.
5. The holder of a permit which allows for the sale of beer and/or wine
only, shall not be permitted to offer any alcoholic beverages other than
beer and/or wine on the subject properiY through any method, including
but not limited to, catering.
6. Anv party or entitv within the "GV" Grapevine Vintaae District or "CBD"
Central Business District holding a State of Texas Alcohol Beverage
Commission permit allowing for the off -premise consumption of wine
shall be required to offer for sale, on the premises, wine by the bottle or
case for purchase.
7. A Certificate of Occupancy shall be issued by the City's Building Inspection
Department at such time as the party complies with all aspects of this Zoning
Ordinance and all other applicable Ordinances. No Certificate of Occupancy
may be assigned or transferred and same is valid only as to the recipient.
No party may operate a restaurant or private club that is zoned pursuant to
Section 42.13 and 49 of this Ordinance without a valid and current Certificate
of Occupancy.
Sec. 4-5. On and off premise alcohol beverage consumption Mixed beverage and
No individual or entity shall sell or serve alcoholic beverages for on -premises or off -
premises consumption as holder of a duly issued Texas Alcohol Beverage
Commission permit allowing on -premise consumption mixed beverage pern
, except in a
restaurant, cafe, cafeteria or eating establishment or on the premises of an individual or
entity whose principal business is transporting of the general public and is operating
pursuant to a certificate of public convenience and necessity issued by a federal or state
regulatory body.
"Restaurant, cafe, cafeteria or eating establishment" is herein defined as a business
whose gross sales from food on an annual basis represent at least 50 percent of its total
sales.
All holders of private club permits shall conduct their business in a manner that
produces gross revenues on an annual basis from the sale of food that at least equals
the gross revenues produced from the serving of alcoholic beverages. This paragraph
shall not apply to any fraternal and veterans organizations legally operating as the
holder of a private club permit prior to the effective date of Ordinance No. 85-32 and
shall not apply to the Benevolent and Protective Order of Elks Lodge No. 2483
operating or intending to operate a private club located or to be located at 224 North
Main Street, Grapevine, Texas, providing that the Benevolent and Protective Order of
Elks Lodge No. 2483 shall obtain all necessary permits required to operate such a
private club and that the operation of such private club has commenced on or before
October 18, 1986.
The party or entity operating the business shall, on an annual basis, file with the city
secretary an affidavit showing gross receipts and sales of the business. The affidavit
shall contain a breakdown between the gross food sales of food and the gross sales of
alcoholic beverages. The party or entity shall also file with the city secretary on an
annual basis, the gross receipts and figures furnished to the state for sales tax and
alcoholic beverage tax purposes. This provision applies to both restaurant, cafe,
cafeteria or eating establishment and to permittee of a federal or state agency.
OZCU/AM13-06/Chapter 4