Staff Report- Chairman and Planning Commission

Staff recommends approval of a Conditional Use Permit Modification Application (17-10-M) by adopting Resolution No. 019P-001 with conditions.

On January 9, 2018 the City of Coalinga Planning Commission Approved Conditional Use Permit Application No 17-10 allowing the establishment of a beer and wine tap room. Follow the formentioned link to view the original approval report: https://coalinga.novusagenda.com/AgendaPublic/CoverSheet.aspx?ItemID=2316&MeetingID=196

On December 27, 2018, the Community Development Department received a Conditional Use Permit Modification application from Juan Maciel (further identified as “applicant”) to expand an approved Taproom to a Microbrewery to include the production of beer including the food service at 466 N. 5^th Street. Staff accepted the application on December 27, 2018 and began processing the application for a modified conditional use permit.

The requirements of a conditional use permit are intended to prevent problems associated with commercial establishments involved in the sale of alcohol for consumption on-site (on-sale) or off-premises (off-sale), and to prevent over-concentration. It has been demonstrated that such establishments can adversely affect nearby commercial and residential uses and can create substantial demands for police services. Therefore, the purpose of the CUP is to establish regulations to govern land uses involved in the production and dispensing of alcoholic beverages.

Project Summary:  The applicant proposes to modify his existing conditional use permit for taproom to change uses to a small microbrewery so that he can produce beer as well as to serve the produced beer to customers at 466 N. 5^th Street. A microbrewery operates similar to that of a bar or lounge that serves alcoholic beverages but focuses on beer and sometimes wine with limited production onsite. The original approval did not permit the applicant to produce beer on-site without subsequent approval by the Planning Commission and modification of the use permit. The original application submitted stated that minor production may occur on the premises in the future but there was not enough information at the time to permit this activity under this application.  

Modification Request: The modification request includes the ability of the applicant to produce beer on-site within the existing building and operate as a microbrewery. Under California ABC Law, the proposed use would be classified as a “Type 23” small beer manufacturer (Brew Pub or Micro-brewery) which authorizes a small-scale brewery operation (typically produces less than 15,000 barrels per year but permitted up to 60,000 barrels) that typically is dedicated solely to the production of specialty beers in draft form, exclusively at the brewery, although some do have a restaurant or pub on their manufacturing plant. In addition to the beer production and sales, the applicant wishes to operate an incubator kitchen for startup restaurateurs to prepare food to be sold on and off-site.

CUP Analysis

General Plan/Zoning Consistency: The current zoning and land use designation for the subject property is (CG) Commercial General. Microbreweries limited in scope to the inside of the building have been determined to fall under the land use classification of Bars/night clubs/lounges/food service which are businesses serving beverages for consumption on the premises as a primary use and including on-sale service of alcohol including beer, wine, and mixed drinks. This includes providing food for its patrons in addition to establishments that provide dancing or entertainment. In accordance with the Coalinga Planning and Zoning Code, these additional uses are permitted subject to approval of a conditional use permit.

Location/Building (APN: 072-111-16ST): The proposed microbrewery is to be located at 466 N. 5^th Street located between Birch and Cedar in the downtown plaza overlay district. The building is approximately 2,000 square feet which was previously used as an office building for the CA State Department of Conservation, Division of Oil and Gas. Interior tenant improvements will need to be made to accommodate the new use.

Surrounding Land Use Setting:

Staff has determined that there are no land use compatibility and/or transitional concerns related to the placement and approval of this use as the use will be operated entirely indoors.

Operations: The microbrewery will be operated by the owner of the property as a sole proprietor. The sale and production of beer will only be permitted within the existing 2,000 s/f building and detached structure located near the northeast corner of the lot. Beer and Wine may be the only permitted alcoholic beverages to be sold and produced on these premises in accordance with the Type 23 ABC License. This facility shall be permitted to be used as a brewing location for homebrewers where the facilities equipment is used to manufacture the homebrew in accordance with State law. No spirits shall be manufactured or sold at this location. All sales will be monitored by the California Department of Alcoholic Beverage Control (ABC) and strictly enforced. In addition to the production and sale of beer, the applicant plans to construct a commercial kitchen in order to provide food options to patrons in addition to serving as a startup incubator for aspiring chefs and restaurateurs to prepare entrees for sale onsite and off-site.

Brewing Process and Equipment: Whether you are a home brewer or a commercial brewer the processes are very similar in that beer is produced from fermenting sugars derived from grain, usually barley. Typical processes for brewing is (1) Malting, (2) Mashing, (3) Boiling, (4) Fermentation and (5) Bottling/Aging.

Malting: Brewing begins with raw barley, wheat, oats or rye that has germinated in a malt house. The grain is then dried in a kiln and sometimes roasted, a process that usually takes place in a separate location from the brewery. At the brewery, the malt is sent through a grist mill, cracking open the husks of the kernels, which helps expose the starches during the mashing process. The process of steep milling, or soaking the grain before milling, is also an option for large-scale brewers. The type of mill proposed in this application is a hand crank with the option of using a power drill as an attachment.

Mashing: The first step in the beer-making process is mashing, in which the grist, or milled malt, is transferred to the mash tun. Mashing is the process of combining the grist and water, also known as liquor, and heating it to temperatures usually between 100 degrees Fahrenheit up to 170 degrees Fahrenheit. Mashing causes the natural enzymes in the malt to break down starches, converting them to sugars, which will eventually become alcohol. This process takes place in one to two hours. Mash temperatures can be gradually increased or allowed to rest at certain temperatures, choices which are very much part of the brewer’s art. Different temperature levels activate different enzymes and affect the release of proteins and fermentable sugars. Proteins play a smaller role but are important to the creation of foam in a finished beer.

Boiling: Once a brewer has wort, it is sterilized through a boiling process in a kettle, which halts enzyme activity and condenses the liquid. During the boil, which typically lasts from 60 to 120 minutes, hops are added during this process.

Fermentation: Wort is transferred to a fermentation tank and the yeast is pitched, or added where the conversion of sugars to alcohol and carbon dioxide that lead to an ale or a lager, depending on the type of yeast used.  Once yeast has been pitched at proper temperature, the beer is generally maintained from 60 to 68 degrees Fahrenheit for ales, and 50 degrees Fahrenheit for lagers. The process of the yeast converting sugars to alcohol generates heat.

Bottling/Aging: Once the beer has fermented, it must be kegged or bottled and carbonated, either naturally or by force. Force carbonation involves adding CO2 to a container under high pressure, forcing it to be absorbed into the beer.

Typical Equipment: Equipment necessary to start a brewery normally consists kettles, kegs, boilers, bottling and canning lines, conveyors, cooling systems, storage tanks, fermentation tanks, filters and beer-labeling machines, piping and tubing, refrigeration equipment, cleaning equipment, waste treatment systems and tap handles. All equipment will be located and stored inside.

Hours: The applicant plans to operate the microbrewery Thursday – Sunday from 12pm to 10pm except for 11pm on Saturdays. Beer production shall be allowed any day of the week. 

Noise: Typical beer production processes do not inherently create a lot of noise, therefore amending the use permit to include beer production should not create a noise impact to the surrounding properties.  Production will be limited to an enclosed building unless decibel levels can be maintained below the maximum allowable levels for the commercial zoning designation where certain processed may be operated outdoor in the back of the lot.

The applicant is also requesting occasional live music indoors. The conditions of approval address restrictions on entertainment and noise to reduce impacts to adjacent residents. This modification would permit both live and amplified music inside the microbrewery, however, if music is to be allowed outside, a noise management plan shall be submitted to the Community Development Department for review and approval by the Community Development Director and Police Chief. Said plan shall establish the method by which noise impacts, including but not limited to, amplified music and patron noise from within the facility as well as patrons/pedestrians outside of the facility in the back area or on the adjacent public sidewalk/street will be regulated to avoid disruption to the immediate neighborhood. Noise levels shall not exceed 65 db levels from any surrounding residential areas adjacent to the subject property.

Special Events: There may be cases where special events take place at this location and the applicant will be required to ensure the appropriate measures are taken to provide adequate crowd control and noise control.

Lighting: Exterior lighting will need to adequately illuminate the sidewalk and other public ways in front of the business at closing times and insure the safety of patrons and discourage loitering in front of the business. Staff will work with the applicant to ensure that the decorative lights on Plaza are in working condition to ensure lighting is adequate at the time of occupancy. Staff has included as a condition of approval to ensure adequate lighting including additional pack lighting on the building. 

Parking: The site has the ability to accommodate 2 off-street parking spaces. In accordance with the Planning and Zoning Code, the parking requirement for this type of use is 1 space per 75 s/f of seating area. Therefore, the maximum required parking demand for this site is 26 taking into account full open seating within the microbrewery. Although the site cannot accommodate the required parking spaces, the zoning code does allow the number of parking spaces required by Table 4.4 to be reduced as well in certain circumstances on-street parking availability and the availability of public parking can’t help off-set the on-site parking demand. Ample on-street public parking is available within and on the plaza from Elm Ave to Birch. This building is to be treated similar to other businesses located in the plaza who rely on on-street/downtown parking facilities to accommodate their parking demands.

If parking shortages or other parking-related problems develop, conditions of approval will require the business operator to institute appropriate operational measures necessary to minimize or eliminate the problem including, but not limited to, adjusting the operating hours of the business.

Public Notification: Public hearing notices were sent to all property owners within 300’ feet of the site as required by Local and State law.

Environmental Considerations: The proposed project has been determined to be exempt from CEQA in accordance with Section 15301(a) for existing facilities. A notice of exemption will be filed with the Fresno County Clerk’s Office once approval has been granted for this application.

None determined at this time.

A Conditional Use Permit shall only be granted if the Planning Commission determines that the project as submitted or as modified conforms to all of the following criteria. If the Planning Commission determines that it is not possible to make all of the required findings, the application shall be denied. The specific basis for denial shall be established for the record.

General Plan consistency:  Approval of the proposed project will advance the goals and objectives of and is consistent with the policies of the General Plan and any other applicable plan that the City has adopted;

This project furthers the advancement of the goals and objectives of the general plan by providing a diversification of uses in the commercial zone and downtown overlay districts of the City.  The proposed use is consistent with the uses allowed in the general commercial zoning district and does not pose a threat to the health, safety, and welfare of the adjacent properties or the community as a whole.

GP Policy LU1-2

Retain and expand diversified business opportunities that are compatible with the environment, community values and community vision of the City.

GP Policy LU1-3

Attract new businesses to the City that are compatible with the community vision and improve the balance among commercial, professional office, and industrial businesses so that the needs of Coalinga residents are provided for without compromising the community character.

GP Policy LU5-1

The City shall actively encourage expanded commercial/retail shopping opportunities and employment generating uses in the Downtown area, generally defined as the square-shaped area between Van Ness Street to the north, Polk Street to the south, Sunset Street to the west and Hayes Street to the east, especially infill development.

GP Policy LU5-2

The City shall enhance the City’s historic Downtown Core by creating an efficient, attractive, and pedestrian-oriented area that reflects the City’s historic character while providing a diverse mix of uses

Neighborhood compatibility:  The location, size, design, bulk, coverage, density, traffic generation and operating characteristics of the proposed project are consistent with the purposes of the district where it is located, and will not have an adverse effect on the neighborhood and surrounding properties;

The proposed use meets and/or exceeds all development regulations for the district that it is located and shows similar operational characteristics to its surroundings uses and zoning designations which will eliminate any adverse effect on the neighborhood and surrounding properties. With the development regulations placed on the proposed use, it will not have a significant impact on traffic and noise within the surrounding areas.

Asset for the neighborhood:  The nature, use and architectural/design features of the proposed development make it attractive, functional and convenient. The proposed development enhances the successful operation of the surrounding area in its basic community functions, or provides an essential service to the community or region.

With the establishment of this use, there will be a reduction in vacant buildings and provide another service that is regularly used within the Community. Microbreweries are a form of bar/lounge with a reduced impact to that of a traditional bar where spirits are served. Microbreweries are traditionally limited to beer and wine with a unique concentration on local producers.