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072 of 2004 - Amending the definition of brew pub to allow for limited wholesale off premises sales of beer 4 •• 0 04-1 P 04-21 SALT LAKE CITY ORDINANCE No. 72 of 2004 (Amending the definition of Brew Pub) AN ORDINANCE AMENDING THE DEFINITION OF BREW PUB TO ALLOW FOR LIMITED WHOLESALE OFF PREMISES SALES OF BEER, PURSUANT TO PETITION NO. 400-03-33. WHEREAS, the existing City Code contains definitions of the term Brew Pub and Micro Brewery,both in the City Zoning Code and in the alcoholic beverages code; and WHEREAS, the City Council finds that the following amendments to those definitions are in the best interest of the City; NOW, THEREFORE,be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Section 6.08.081.B of the Salt Lake City Code shall be and hereby is amended to read as follows: "Brew pubs" means: 1. Restaurant-type establishments that also have a beer brewery,producing beer in batch sizes not less than seven(7)U.S. barrels (31 gallons), on the same property which produces, except as provided in subsection B2 of this Section, only enough beer for sale and consumption on site or for retail carry-out sale in containers holding less than two liters (2 1) for wholesale as outlined in subsection D and E. Automated bottle or canning production is prohibited. At least fifty percent(50%) of the beer sold shall be brewed on the premises. Revenue from food sales shall constitute at least fifty percent(50%) of the total business revenues, excluding retail carry-out sales of beer and the sales allowed pursuant to subsection B2 of this Section. Brewpubs are limited to a total brewing capacity of 2,500 barrels per year or 120 barrels of fermentation at any one time, whichever is less. 2. Brew pubs may sell beer in keg(larger than 2 liters) containers for the following purposes and in the following amounts: a. An unlimited number of kegs (not to exceed 2500 barrel capacity) for "brew fests" which, for the purpose of this Section,means events, the primary purpose of which is the exposition of beers brewed by brew pubs and microbreweries, which include the participation of at least three (3) such brewers; b. No more than one hundred(100) kegs per year(not to exceed 2500 barrel capacity)to events sponsored by charitable organizations exempt from Federal income tax pursuant to 26 USC, section 501(c)(3) or its successor; and c. No more than one hundred(100) kegs per year(not to exceed 2500 barrel capacity)to events operating under a single event license from the State and the City where the purpose of the event is not for commercial profit and where the beer is not wholesaled to the event sponsor but is, instead, dispensed by employees of the brew pub. d. Unlimited distribution to other restaurants of same ownership or control (not to exceed 2500 barrel capacity) Ownership or control means more than 50% ownership in the actual business or controlling interest in any management partnership. e.No more than five hundred(500)barrels for wholesale distribution(not to exceed 2500 barrel capacity). 3. The numerical limits and other provisions of subsection B2 of this Section shall be reviewed by the City Council between September 1996 and December 1996. If no amendment is made to subsection B2 of this Section prior to January 1, 1997, subsection B2 of this Section shall continue in effect. SECTION 2. The definition of"Brew pub," as set forth in Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to read as follows: "Brew pub" means a restaurant type establishment that also has a beer brewery, producing beer in batch sizes not less than seven(7)U.S. barrels (31 gallons), on the same property which produces, except as provided in subsection 6.08.081B2 of this Code, only enough beer for sale and consumption on site or for retail carryout sale in containers holding less than two liters (2 L) or for wholesale as outlined in subsection D and E. Automated bottle or canning production is prohibited. At least fifty percent (50%) of the beer sold shall be brewed on the premises. Revenue from food sales shall constitute at least fifty percent (50%) of the total business revenues, excluding retail carryout sales of beer and the sales allowed pursuant to subsection 6.08.081B2 of this code. Brewpubs are limited to a total brewing capacity of 2,500 barrels per year or 120 barrels of fermentation at any one time, whichever is less. Brew pubs may sell beer in keg(larger than 2 liters) containers for the following purposes and in the following amounts: A. An unlimited number of kegs (not to exceed 2500 barrel capacity) for "brew fests" which for the purpose of this definition, means events, the primary purpose of which is the exposition of beers brewed by brew pubs and microbreweries, which include the participation of at least three (3) such brewers; B. No more than one hundred(100)kegs per year(not to exceed 2500 barrel capacity)to events sponsored by charitable organizations exempt from federal income tax pursuant to 26 USC, section 501(c)(3) or its successor; and C. No more than one hundred(100)kegs per year(not to exceed 2500 barrel capacity) to events operating under a single event license from the state and the city where the purpose of the event is not for commercial profit and where the beer is not wholesaled to the event sponsor but is, instead, dispensed by employees of the brew pub. D. Unlimited distribution to other restaurants of same ownership or control(not to exceed 2500 Barrel capacity). Ownership or control means more than 50% ownership in the actual business or controlling interest in any management partnership. E.No more than five hundred(500)barrels for wholesale distribution(not to exceed 2500 barrel capacity). SECTION 3. Effective Date. This ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City,Utah this 7th day of September , 2004. CHAIRPERS ATTEST: atatv:-.P CHIEF DEPUT IT CORDER {+ \'a 's r: Transmitted to Mayor on September 7, 2004 . Mayor's Action: X Approved. Vetoed. M OR ATTEST: CHIEF DEPUTY TY RE—ORDER (SEAL) f:', Bill No. 72 of 2004. 1 Published: September 14, •2004 Q�'r :'` 's- APPROVED AS TO FORM Salt Lake City Attorney's Office Date - 9-O By G:\Ordinance 04\Amending the def of Brew Pub-Clean-July 29,2004.doc