Extension of Ordinance No. 2014-03 Adopting a Moratorium on Approval of Use Permits for New Wine Tasting Room Establishments 05-06-14.pdf

142

To:

From:

Submitted by:

Subject:

CITY OF CARMEL-BY-THE-SEA

Council Report

May 6, 2014

Honorable Mayor and Members of the City Council

Jason Stilwell, City Administrator

Rob Mullane, AICP, Community Planning and Building Director

Extension of Ordinance No. 2014-03 Adopting a Moratorium on Approval

of Use Permits fo r New Wine Tasting Room Establishments for an

Additional Period not to Exceed Ten Months and Fifteen Days to Allow

Development of Revisions to the City's Wine Tasting Policy

Recommendation: Extend Urgency Ordinance 2014-03, a moratorium on approval of Use

Permits for new wine tasting establishments

Executive Summary: On April 1, 2014, the City Council adopted Ordinance No. 2014-03, an

urgency ordinance to establish an interim (45-day) moratorium on

approvals of Use Permits for new wine tasting establishments. The

moratorium was to allow staff to process revisions to the City's existing

Wine Tasting Policy (Attachment B) prior to approving new wine tasting

establishments. The ordinance would exclude from the moratorium any

Use Permits that prior to April 1, 2014, have been deemed complete for

processing. Pursuant to California Government Code Section 65858

(Attachment C), the urgency ordinance shall expire after 45 days unless

the City Council grants a time extension.

Analysis/Discussion: On March 25, 2014, the Planning Commission conducted a workshop on

the City's Wine Tasting Policy and recommended that the City Council

adopt a moratorium on approvals of Use Permits for new wine tasting

establishments. The staff report for that workshop is included as

Attachment D. The Council's adoption of the interim moratorium on

April 1, 2014, was intended to allow staff to work with the Planning

Commission and the Commission's Wine Tasting Subcommittee to bring

forth revisions to the Wine Tasting Policy that would refine and clarify the

policy. Staff anticipates that revisions to the policy would require

approximately 6 to 9 months of work, including 1 or 2 meetings of the

1

143

Alternatives:

City's Wine Tasting Room Subcommittee, followed by hearings before the

Planning Commission and then the City Council.

The moratorium was crafted to exclude wine tasting room applications

that had previously been deemed complete for processing and that are

proposing a Type 02 License from the California Department of Alcoholic

Beverage Control. Of these, Use Permit UP 14-09 for the Windy Oaks

wine tasting room at Lincoln 4 NE of 6th Avenue was approved by the

Planning Commission on April 17, 2014. The only other active wine

tasting room application that is not subject to the moratorium is Use

Permit 14-02, for Tudor Wines, which was remanded to the Planning

Commission by the City Council at the Council's April 1, 2014

consideration of the Tudor appeal. The Tudor Wines Use Permit is

tentatively scheduled for the May 15, 2014 Planning Commission

meeting.

Extension of the moratorium would allow staff to bring forth revisions to

the City's Wine Tasting Policy over the next few months. Staff anticipates

1 to 3 meetings of the Wine Tasting Subcommittee, followed by public

hearings at the Planning Commission and then the City Council.

Staff recommends that the Council extend the moratorium on approval

of Use Permits for new wine tasting establishments with no changes to its

applicability. Alternatively, the Council could alter the applicability of the

moratorium.

The Council could also opt not to extend the moratorium, in which case

upon the expiration of the interim moratorium on May 16, 2014, staff

would resume processing existing and new wine tasting applications and

analyze these according to the City's existing Wine Tasting Policy. This

alternative would not allow for possible clarifications and refinements of

the policy prior to Planning Commission consideration of such

applications. It would also present challenges to the Community Planning

and Building Department's workload as staff would need to

simultaneously process new wine tasting applications as well as revisions

to the Wine Tasting Policy.

Environmental Determination:

The City has determined that the proposed action is exempt from the

Cal ifornia Environmental Quality Act (CEQA). Section 15061(b)(3) of the

CEQA Guidelines includes the general rule that CEQA applies only to

activities which have the potential for causing a significant effect on the

2

144

Fiscal Impact:

environment. Where it can be seen with certainty that there is no

possibility that the activity in question may have a significant effect on

the environment, the activity is not subject to CEQA.

Staff work to process the ordinance and process revisions to the Wine

Tasting Policy is included in the Community Planning and Building

Department's operations and budget.

Previous Council

Action/ Decision History:

The City's existing Wine Tasting Policy was approved on June 23, 2011.

The City Council implemented a 45-day moratorium on approval of

permits for new wine tasting establishments on April 1, 2014.

Attachments:

• Attachment A- Extension of Ordinance 2014-03

• Attachment B- Wine Tasting Room Policy

• Attachment C- California Government Code Sections 65858 and 65090

• Attachment D- Planning Commission Staff Report from Wine Tasting Room Workshop

on March 25, 2014

Reviewed by:

City Administrator~ City Attorney D Administrative Services D

Asst. City Admin. D Dir of CPB ~ Dir of Public Svcs D

Public Safety Dir D Library Dir D Other D

3

145

Attachment A CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

ORDINANCE NO. 2014-03

EXTENSION OF CITY COUNCIL ORDINANCE NO. 2014-03 FOR AN ADDITIONAL

PERIOD OF 10 MONTHS AND 15 DAYS IMPLEMENTING A MORATORIUM ON APPROVAL OF USE PERMITS FOR NEW WINE TASTING ROOM

ESTABLISHMENTS

WHEREAS, the City of Carmel-by-the-Sea is a unique coastal community that prides itself in its community character; and

WHEREAS, the City' s General Plan encourages a balanced mix of uses that serve the needs ofboth local and non-local populations; and

WHEREAS, the City requires a Use Permit for certain new wine tasting establishments; and

WHEREAS, on June 23, 2011 , the City adopted a Wine Tasting Policy to guide the City's review of new wine tasting establishments; and

WHEREAS, the existing Wine Tasting Policy was developed to recognize the demand for establishing wine tasting facilities but also to recognize that their proliferation could impact the balanced mix of uses that the General Plan encourages; and

WHEREAS, the City Council has determined that the City's ex1stmg Wine Tasting Policy requires revisions for clarity and to better ensure compliance with the objectives of the policy and the City' s General Plan; and

WHEREAS, on April I, 2014, the City Council adopted Ordinance No. 2014-03, an interim moratorium on approval of new wine tasting rooms except for applications that had been deemed complete for processing that were associated with a Type 02 License from the California Department of Alcoholic Beverage Control, and that the interim moratorium was for a period of 45 days; and

WHEREAS, on May 5, 2014, the City Council conducted a duly-noticed public hearing and considered all public testimony, both w1itten and oral, received in conjunction with the public hearing; and

WHEREAS, pursuant to the facts set forth herein, this ordinance is hereby declared to be an necessary for the protection of public health, safety and welfare; and

146

WHEREAS, this Ordinance is authorized by California Government Code Section 65858 in order to promote a balanced mix of uses within the City; and

WHEREAS, the extension of an urgency ordinance requires a four- fifths vote of the City Council and would extend the moratorium an additional 10 months and 15 days beyond the initial 45-day interim period.; and

WHEREAS, the City Council has determined that the proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061 (b )(3), which includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment.

THEREFORE, THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES ORDAIN, AS FOLLOWS:

Section One. The City hereby extends the duration of a moratorium on the processing of Use Pe1mits and Use Permit Amendments for new wine tasting establishments to enable City staffto process possible revisions to the City's Wine Tasting Policy. The moratorium applies to all such applications that either 1) have not yet been deemed complete for processing by City staff or 2) have been deemed complete yet are not associated with Type 02 State ABC license.

Section Two. If any section, subsection, or part of this Ordinance is held to be invalid or unenforceable, all other sections, subsections, or parts of subsections of this ordinance shall remain valid and enforceable.

Section Three. Effective Date. This extension of Urgency Ordinance 2014-03 shall take effect immediately upon four-fifths vote of the City Council. This extension of Urgency Ordinance No. 2014-01 shall expire on March 31, 2015, unless subsequently extended, or rescinded. This is declared to be an urgency measure as authorized by California Government Code Section 65858.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE­SEA this 6th day of May 2014, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ASTAIN: COUNCIL MEMBERS:

2

147

SIGNED:

ATTEST: Jason Burnett, MAYOR

Deanna Allen Acting Deputy City Clerk

3

148

Purpose

Wine Tasting Policy (Adopted 6/23/2011)

Attachment B

To establish guidelines for the review and approval of wine tasting facilities in the Central Commercial and Service Commercials Districts in the downtown.

Policy

The General Plan encourages a balanced mix ofuses that serve the needs ofboth local and non­local populations. The Planning Commission recognizes the demand for establishing wine tasting facilities but also recognizes that their proliferation could impact the balanced mix ofuses that the General Plan encourages. The following standards are recommended and should be considered by the Planning Commission in its review of wine tasting permits:

When Associated with Retail Wine Shops and off-site Wine Tasting Rooms:

• The primary purpose of wine tasting should be to encourage patrons to purchase wine for consumption off-site. Establishments should not operate as a wine bar where the primary purpose would be for patrons to drink wine.

• In order to avoid the appearance of a bar, the wine tasting service and seating area should generally be limited to no more than 30% of the floor area of the retail space.

• Tasting should only involve traditional wine based products such as still wines, sparkling wines or Port, no other alcoholic beverages should be permitted to be tasted or purchased.

• The maximum serving size should be 2 ounces per serving. Customers should not be pennitted to drink bottles of purchased wine in the store and no wine tasting should take place on public property.

• Light snacks may be allowed, however, appetizers and/or meals should not be permitted. • In order to encourage diversity and maintain a balanced mix of uses, one retail location

offering wine tasting should not be located directly adjacent to another retail location offering wine tasting (not including restaurants). Generally, not more than five establishments offering tasting should be permitted along any one block*.

• Night time hours should be limited to no later than 10:00 p.m. • Wines originating from Monterey County Vineyards and Wineries and locating their off­

site tasting rooms in Carmel are desired and strongly encouraged.

When Associated with other Uses (Art Gallery, Clothing Store, etc.)

• All the standards listed above. • Limited to retail spaces of2,000 square feet or larger.

*For the purposes of this policy a block would include all commercial spaces on both sides of a street located between the next two cross streets. For example, no more than fi, ·e wine tasting establishments should be permitted along San Carlos Street between Ocean and Se\·enth avenues.

149

California Government Code Sections 65858 and 65090

65858. (a) Without following the procedures otherwise required prior to the adoption of a zoning ordinance, the legislative body of a county, city, including a charter city, or city and county, to protect the public safety, health, and welfare, may adopt as an urgency measure an interim ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time. That urgency measure shall require a four-fifths vote of the legislative body for adoption. The interim ordinance shall be of no further force and effect 45 days from its date of adoption. After notice pursuant to Section 65090 and public hearing, the legislative body may extend the interim ordinance for I 0 months and 15 days and subsequently extend the interim ordinance for one year. Any extension shall also require a four-fifths vote for adoption. Not more than two extensions may be adopted.

65090. (a) When a provision of this title requires notice of a public hearing to be given pursuant to this section, notice shall be published pursuant to Section 6061 in at least one newspaper of general circulation within the jurisdiction of the local agency which is conducting the proceeding at least 1 0 days prior to the hearing, or if there is no such newspaper of general circulation, the notice shall be posted at least 10 days prior to the hea1ing in at least three public places within the jurisdiction of the local agency.

(b) The notice shall include the information specified in Section 65094.

(c) In addition to the notice required by this section, a local agency may give notice of the hearing in any other manner it deems necessary or desirable.

(d) Whenever a local agency considers the adoption or amendment of policies or ordinances affecting drive-through facilities, the local agency shall incorporate, where necessary, notice procedures to the blind, aged, and disabled communities in order to facilitate their participation. The Legislature finds that access restrictions to commercial establishments affecting the blind, aged, or disabled is a critical statewide problem; therefore, this subdivision shall be applicable to charter cities.

Attachment C

150

Attachment D

To:

From:

Submitted by:

Subject:

CITY OF CARMEL-BY-THE-SEA

Planning Commission Report

March 25, 2014

Chair Dallas and Planning Commissioners

Rob Mullane, AICP, Community Planning and Building Director

Marc Wiener, Senior Planner

Discussion on the City's Wine Tasting Policy and State Alcohol Beverage

Control licensing Requirements

Background and Purpose:

On June 23, 2011, the City adopted a Wine Tasting Policy to provide guidelines to assist the City

with review of applications for wine tasting shops. The policy was developed based on

recommendations from a Wine Tasting Room Subcommittee, which worked with several

stakeholders, including the Monterey County Wine Growers Association and the local Chamber

of Commerce.

In recent years, the City has seen a marked increase in requests for wlne tasting establishments

in the commercial district. Since the policy was adopted in 2011, a total 18 applications for

wine tasting have been submitted, and 11 of which have been approved. Staff notes that five

of those applications were submitted in 2014, and over the last few months, the City has

received an uptick in inquiries regarding potential new establishments.

In response to the increased interest in wine tasting rooms, in October 2013, the Planning

Commission directed the Wine Tasting Room Subcommittee to reconvene in order to evaluate

the current policy and recommend appropriate revisions. The Planning Commission also

requested information on State Alcohol Beverage Control (ABC) licensing requirements, as the

issue of ABC licensing has been raised with several recent wine tasting applications. Staff notes

that the subcommittee met three times since October, including a meeting held on December

18, 2013, that was attended by several local tasting room operators as well as representatives

of the residential community.

151

Wine Tasting Workshop March 25, 2014 Staff Report Page 2

The purpose of this workshop is to provide information on the ABC licensing requirements and

to evaluate the current Wine Tasting Room Policy based on recommendations made by the

subcommittee. Staff has provided information on approved and pending wine tasting permits

in the City in Attachment C. The information on wine tasting permits includes the type of ABC

license held by each wine tasting establishment.

Staff analysis:

ABC Licensing: A description of the different types of ABC licenses is provided In Attachment B.

As indicated on the list of Carmel wine tasting establishments, the most common type of

license is the Duplicate Type 02, which is a winegrower license. A Duplicate Type 02 license

allows a winery to establish a tasting room away from the winery site. The Planning

Commission has recently indicated an interest in limiting wine tasting establishments to those

that hold a Type 02 Duplicate license.

The other type of license applicable to wine tasting operations in the City is a Type 421 which

allows for the sale of beer and wine for consumption on or off the premises where sold. This

type of license would be common of wine establishments that sell multiple types of wines as

opposed to representing a wine from a single winery. Staff notes that with the Type 42 license,

the wine tasting establishment would still need to adhere to the regulations imposed through

the typically more restrictive Use Permit issued by the City.

In some instances, Type 20 and Type 21 licenses are issued in conjunction with a Type 42

license. A Type 20 license permits the sale of beer and wine for off-site consumption, while a

Type 21 permits the sale of beer, wine, and distilled spirits. Staff notes that a representative

from the ABC will be at the March 25th workshop to answer questions regarding ABC licensing

and enforcement.

Issued and Pending Use Permits: There are 18 approved wine tasting establishments located in

the City. A list of these establishments, their Use Permit numbers, the hours of operation, the

type of ABC license, and a map of the locations is included as Attachment C. Also Included is a

list and map of the eight wine tasting applications that are currently in process with the City.

The purpose of providing this information is to update the Planning Commission on the extent

of current and proposed wine tasting establishments in the City.

To assist In the evaluation of the different types of set-up for existing wine establishments, staff

has provided floor plans and photographs of four of the City's approved wine establishments

152

Wine Tasting Workshop March 25, 2014 Staff Report Page3

including Silvestri Vineyards, Dawn's Dream Winery, Trio, and Caraccioli Cellars. In staff's

opinion, the layout of most of these examples presents an aesthetic that promotes a wine

tasting experience rather than a wine bar-like environment in compliance with the City's Wine

Tasting Room Policy. One way that the policy helps ensure this is by limiting the tasting area to

30% or Jess of the establishment's total floor area. Staff notes that even with such a restriction

on floor area, some operations present more of a bar-like setting based on other factors such as

layout, physical setting, and hours of operation.

Of the four examples provided, Trio is the only establishment where the tasting area appears

truly ancillary to the sale of retail. However, Trio is unique in that 1) the primary use Is specialty

foods, 2) three wine labels are represented in the space, and 3) the space is approximately

2,000 square feet in size, which is relatively large in relation to many of the other wine

establishments in the City.

The layout and location of establishments also have an effect on the ease or difficulty City staff

may have in ensuring compliance with Use Permit conditions of approval, such as number of

seats, hours of operation, and compliance with pour-size restrictions.

Wine Tasting Policy: A list of current Wine Tasting Policy guidelines is provided below followed

by staff analyses.

1. The primary purpose of wine tasting should be to encourage patrons to purchase wine for

consumption off-site. Establishments should not operate as a wine bar where the primary

purpose would be for patrons to drink wine.

2. In order to avoid the appearance of a bar, the wine tasting service and seating area should

generally be limited to no more than 30% of the floor area of the retail space.

Staff Analysis: Limiting the tasting and seating area and number of seats helps prevent the

space from operating as a bar or lounge; however, many of the City's wine tasting

establishments still present somewhat of a bar-like appearance. The primary purpose of wine

tasting establishments should be to sell wine for off-site consumption, as indicated in the

policy.

Another consideration for the 30% floor area limit is that wine tasting establishments often do

not want to locate large portions of their wine stock on the show floor, as it does not present

an ideal storage location for wine and could damage the product through exposure to

153

Wine Tasting Workshop March 25, 2014 Staff Report Page4

temperature and/or light. More often, the retail component of a wine tasting establishment

consists of a small display of bottles with a limited number of retail items associated with wine

such as books, wine glasses, apparel, etc.

The Commission should consider whether the current policy adequately addresses the stated

intent of the policy. If the current policy components do not adequately address wine tasting

establishments, then revision to provide clearer guidance may be needed. Further restrictions

on allowed seating/tast.ing areas may be advisable, or the Commission could prohibit new wine

tasting establishments from having seating altogether.

3. Tasting should only involve traditional wine based products such as st/11 wines, sparkling wines or Port, no other alcoholic beverages should be permitted to be tasted or purchased.

4. The maximum serving size should be 2 ounces per serving. Customers should not be permitted to drink bottles of purchased wine in the store, and no wine tasting should take place on public property.

5. Light snacks may be allowed; however, appetizers and/or meals should not be permitted.

Staff Analysis: Staff recommends retaining the above guidelines unchanged, as each of these

help discourage a bar-like operation of the establishment. Guidelines #3, #4, and #5 also

support the objective of Guideline #1.

6. In order to encourage diversity and maintain a balanced mix of uses, one retail location offering wine tasting should not be located directly adjacent to another retail location offering wine tasting (not including restaurants). Generally, not more than five

establishments offering tasting should be permitted along any one block*. (*For the purposes of this policy a block would Include all commercial spaces on both sides of a

street located between the next two cross streets. For example, no more than five wine tasting establishments should be permitted along San Ctlrlos Street between Ocean and Seventh avenues.)

Staff Analysis: There are currently 18 wine tasting establishments in the City. As indicated in

the map provided as Attachment C, the majority of wine tasting establishments are clustered in

the area of Dolores and San Carlos Streets between Ocean and Seventh Avenues. However,

there is still potential to locate several more establishments both south and north of Ocean

Avenue. The Commission may want to consider whether an overall (City-wide) numerical cap

would be effective as a supplemental restriction.

154

Wine Tasting Workshop March 25, 2014 Staff Report Page 5

Staff also notes that the current policy encourages no more than five wine tasting

establishments on a "block," which is defined in the above policy section. The definition of a

block works well for streets that run in a north-south direction, such as San Carlos or Dolores

Streets. However, the policy allows for a higher density of wine tasting establishments along

streets that run in an east-west direction. For example, under the current policy, five wine

tasting establishments could be placed on Seventh Avenue between Dolores and San Carlos,

which is approximately one-half the length of the longer north-south oriented streets.

7. Night time hours should be limited to no later than 10:00 p.m.

Staff Analysis: The Commission should consider restricting the hours of operation so that the

business would operate more consistently with a wine tasting establishment and not a bar. In

order to more effectively meet the intent of the policy, staff recommends that the Commission

consider revising this guideline to establish an earlier maximum dosing time, perhaps 7:00 p.m.

or 8:00 p.m. Staff notes that the Commission has already begun restricting the hours of

operation on applications received over the past year as indicated in the list provided in

Attachment C.

8. Wines originating from Monterey County Vineyards and Wineries and locating their off-site

tasting rooms in Carmel are desired and strongly encouraged.

Staff Analysis: The policy language states a preference, not an absolute. It should be taken into

consideration along with other policy guidelines in considering new wine tasting

establishments. As encountered with a few recent applications, the grapes were noted as

deriving from Monterey County vineyards, while the winery was located outside of Monterey

County. It may be preferable to revise this guideline to state: "Wineries located in Monterey

County that source their grapes from Monterey County vineyards and locate their off-site

tasting rooms in Carmel are desired and strongly encouraged." A numerical threshold could

also be added to specify a desired percentage of grapes that are sourced from Monterey

County vineyards.

Furthermore, the Commission may want to include language encouraging the winery to have a

Duplicate Type 02 license. The benefit of encouraging the Duplicate Type 02 license, in

conjunction with expressing a preference that the winery be from Monterey County, is that it

155

Wine Tasting Workshop March 25,2014 Staff Report Page 6

encourages locally-based individual wineries, and would prevent the proliferation of a large

number of wine establishments with no affiliation to a specific winery.

9. When Associated with other Uses (Art Gallery, Clothing Store, etc.)

• All the standards listed above.

• Limited to retail spaces of 2,000 square feet or larger.

Staff Analvsls: The above guideline addresses proposals for wine tasting in establishments

where the primary use is retail sale of unrelated merchandise such as art galleries, home decor

stores, clothing stores, etc. The Commission, as part of the review of a Use Permit for a new

wine tasting establishment, considers whether wine tasting is compatible with the identified

primary use or uses. The Commission may consider amending this guideline to discourage

mixing wine tasting with such non-wine- or food-oriented uses. Art galleries could still apply to

have occasional special events where wine may be served through a temporary use permit.

Wine Tasting Definition: A subcommittee meeting was held on December 18, 2013, with

several members of the Monterey County Wine Growers Association. At that meeting it was

identified that there are essentially two types of wine tasting operations in Carmel. The

following is a definition of each.

1. Wine Shop: This is a retail wine shop that sells a variety of bottled wines and may have a

small ancillary tasting area. A good local example of this type of operation would be

Nielsen's Market, which has a wine room that sells a variety of bottled wines with a small

tasting area provided by a standing-bar. This type of establishment would typically hold a

Type 42 license from the ABC.

2. Wine Tasting Room: This type of establishment is characteristic of many of the tasting

rooms that have been approved in Carmel. Typically, the wine tasting room only features

wine from one winery, under a Duplicate Type 02 license. The space places a larger

emphasis on the tasting area than a wine establishment.

The Planning Commission may consider addressing the difference between the two types of

wine establishments In the policy. Staff notes that without including other guidance for the

wine shop type of establishments, such operations would be discouraged or prohibited if the

policy is amended to favor single wineries with a Duplicate Type 02 license. As a separate note,

pursuant to CMC 17.14.030, retail liquor stores are a permitted use in the CC and SC Zoning

156

Wine Tasting Workshop March 25, 2014 Staff Report Page 7

Districts. Wine shops would still be allowed, but just not allowed to offer wine tasting. One

option to address this scenario is to provide for a limited frequency of wine tasting events for

wine shops through a condition of approval on the operation's Use Permit.

ATTACHMENTS:

• Attachment A - Wine Tasting Policy (dated 6/23/11)

• Attachment B- ABC licensing definitions

• Attachment C -list of wine tasting establishments and maps

• Attachment D- Examples of approved wine tasting establishments

157

Attachment A- Wine Tasting Policy

Pmpose

Wine Tasting Policy (Adopted 6/23/20 11)

To establish guidelines for the review and approval ofwine tasting facilities in the Central Commercial and Service Commercials Districts in the downtown.

Policy

The General Plan encourages a balanced mix of uses that serve the needs ofboth local and non­local populations. The Planning Commission recognizes the demand for establishing wine tasting facilities but also recognizes that their proliferation could impact the balanced mix of uses that the General Plan encourages. The following standards are recommended and should be considered by the Planning Commission in its review of wine tasting permits:

When Associated with Retail Wine Shops and off-site Wine Tasting Rooms:

• The primary purpose of wine tasting should be to encourage patrons to purchase wine for consumption off-site. Establishments should not operate as a wine bar where the primary purpose would be for patrons to drink wine.

• In order to avoid the appearance of a bar, the wine tasting service and seating area should generally be limited to no more than 30% of the floor area of the retail space.

• Tasting should only involve traditional wine based products such as still wines, sparkling wines or Port, no other alcoholic beverages should be permitted to be tasted or purchased.

• The maximum serving size should be 2 ounces per serving. Customers should not be permitted to drink bottles of purchased wine in the store and no wine tasting should take place on public property.

• Light snacks may be allowed, however, appetizers and/or meals should not be permitted. • In order to encourage diversity and maintain a balanced mix ofuses, one retail location

offering wine tasting should not be located directly adjacent to another retail location offering wine tasting (not including restaurants). Generally, not more than five establishments offering tasting should be permitted along any one block*.

• Night time hours should be limited to no later than 10:00 p.m. • Wines originating from Monterey County Vineyards and Wineries and locating their off­

site tasting rooms in Carmel are desired and strongly encouraged.

When Associated with other Uses (Art Gallery, Clothing Store, etc.)

• All the standards listed above. • Limited to retail spaces of2,000 square feet or larger.

•For the pwposes of this policy a block would include all commercial spaces on both sides ofa street located between the next two cross streets. For example, no more than five wine tasting establishments should be pennitted along San Carlos Street between Ocean and Seventh avenues.

158

I "HE 'TWE

01

02

20

21

23

410

41

42

47

41

ABC-618 (08-11)

L.~,-~ A-~d LCi , J

DESCRIPTION BEER MANVI'Acroa:r.R • (LIJp Brcway) Awlltori2D t1te ll1o of'beer 1lo my pc:non holding alioc:nac aulhorizing lhc ale ofbcu, ad ID CODI\III1mW tor~ oa ar off the IIIIIIIJf'actar'aliceG.sed praDiaL Without eay additiclllllliccucl, IDlY HIJ boar m1 wimc, ~ of ICJUftlC, 1D CQDI1IIIIClll for COUIII!lpliOD at a bema fia public ~ pllce OD the mmnficturcr'aliccnled pntmfHI or lit a bema fide ICIIiq p1acc c:oatipJIDa to the ~··lic:cmcd pnmiaca. M.-y CIXIdu&:t bear tut:iqllllldcr llllrx:ified CCJDdirimu! (Sceticm 2.33!7.3). MiDon an: IDowed aD 1bo . WINEGitOWD. • (WiDI:ry) Autbgrjzcs the uJe ofwint .-1 bnady to Ill)' pc:riOilboJdiDa alia:uo IIUihorizillg tDc aaJe of'Vt'IM ad bnmdy, md 1lo COIL8ml(ll for CClllftiiiPiioo o«1he prcmiaea wbcre 101d. A1dllori2lc8 the Ilk of all willa ad lnudicl, ~or IOIInlO, 10 eaJIIIIIIIIII for CDIIIUIIJptioo oa the pnlllliJm ill a boDa fide .au, placo thet ill.ocaled 011 1be liceairecl p1IIDilea or 011 pl1!l2liiDI OWJJalby tbc &a.oo dlld In: CUDlipoua to 1be licclllled praniaCI md opcnted by lllCl far lbe lk:allc:c. May poHell wma md brady for1110 m the p-eperat~oa of food a bmnae to be C'ODIUil:ICil at the bema fide Clllliaa place. May cxmduct.~ UDder praaibed cxmditicma (SectiOD 23356.1; llnlc 53). Mm.ora arc aUcnrecl em the . OJ'F ~ BU.:a A WINE - (Pac:lrqe SUR) Audloril:as lbo ak of beer IIIIi wiDe for QODIUwp4Jon o.ff the wbcto I01d. Mmollae allowed 011. the OJ'F SALit GENJI:IlAL • {Paa&e Store) Aufhori"• tbe aale of beer, ~ ad dildllcd arpirill fur .

offtbc wh&n aoJd. Miuara are allowed 011 the SMALL III'.EJl MANVFAC'l1lllER- (Brew hb or Micro-brcway) A'lltflocial the umc priviJega ud rallictioDs u a Type 01. A bmrplab ia lYJiic:ally a VfJCY lllllll brewery wi1b a~ A mfcm.bl'ewary ie allNlHcale bmrr.ty opctatian that typically ia clediadDd IOle1y ID the production of lpoc:illty been, ..1.....,-~o IOIDD do baYc a n:sllmlat or .,lib aa dulir i plat ON SALE BEER- (Bar, Tavem) AuCbadzca ~ aJc of bear for CUl&wupliml oa or offebe(JR~Diat:t whme ao1d. No wiDe or diltDJed spirit~ may be cn tbe preznilca. Full meala arc DOt~~. IIDClwidlc:a ar 8MCb 1111111: be available. MiDon am aDond aa the ON &\LE IIUR le WINE-EATING PLACE· {R.edmriDt) A1ldJaliRI b ll1e ofbear ad wiDe fur CODIUDIPliaa oo m oft'lhe pemiiOI\Vh= IOld. DiltiJied ljlirita Dill)' nat be 011 the prclllli.a (c:tccpt braady,hiiD. or 1iquaJra fur.- 80le1y fiJr ~ parpoaea). Mut opcmc llld aaaiDJal1he lic:eDied pram.. u a bou fide Clitia& pt.ce. MUit Ulllill1aiD ailable Jdtchaa fiu:ilitier., ad Dl.lt ~actual mel ~.JIIIlCII oflJICala ftJr

. Ollltbe Mmora - aiio1RIIl Oil tJe ON SALE BEER a WllU-PUBLIC PREMISES ·{Bir, Tavau) Aatlladr.el1le uJe of boar llld. wiJie for CODIUIIIJ'tion on or off the premllai when sold. No diltillal tpiritl may be Clll the pnmiaee. Minori~R not allowecl to adm" md l'IIIDin (aee Sccticm .25663.5 for c:accpdon.ll'!lll!jci!IDII). Food .W:C il nat _...... ON SALE GENERAL-EATING PIA.CI: • {Ratlanut) AldllarlzM Cbe uleofbeer, wiDe ad cliatillcd tpUiSI h Cllll.llllDlpdo OJl the 1iccaaa praailca. AulboriJ.a the IIIlo of beer ad wine fUr COIIIumptiU!l off the Jiaa&o:a pramilal. Must opnte l11d IDIIiDtain 1ba tiCIIIICd pra:ailc:s ... bOlla 1lde .... ~- Mutt maWaiD IIJillble ldtdlen &cilidta. ad DIDit m.b actual md whltlntial aa1a ofm.ll for CODIII!IIption 011 the~- MiDarl '"'allowal Oil tJae • ON &AUt GENERAL-PIJIIl.IC l'llEMIDS ·(Bar, Njpt Club) AJ!daori:a:• the Ilk of'bcer;wme aDd. .

far COlli OD.tbe dildllal ~¢rita 1lqiCioll ~ wfuR I01d. Aldbolila t1le tale ofbccr md wiDo b can!Jift'tl'ian oft'tbt prrmilca where aold. MiDonl.n 'DOt aJloftd t.o cotcr aDd nmaial (ICC Socticm .25663.5 1br 11D11i.ci1D1 Foocl.aerv.ice il D11t • ON BALE GI:NEBAL-SEABONAL .. Autborizel the ume pd'rilesel md raldc:tioD.Iu pnrvidod for a Type 471it.tme c:acept it ia iuued for alpCdfic; aaoa. IDcJuaivc dais of OJ)Gt'ltioa 1n lilted aD the Iicc:ase ccati&:ate.

159

LDH£ n'PE DESCRI PTION

51 CLUB- Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for CODS\liJlption on the premises where sold. No off~sale privileges. Food service is not required. Minors are allowed on the premises.

52 VETERAN'S CLUB- Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for consumption on the premises where sold. Authorizes the sale of beer and wine, to members and guest only, for consumption off the licensed premises. Food service is not n:quired. Minors are allowed on the premises.

57 SPECIAL ON SALE GENERAL- Generally issued to certain organizations who cannot qualify for club licenses. Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for consumption on the premises where sold. Authorizes the sale of beer and wine, to members and guests only, for consumption off the licensed premises. Food setVice is not required. Minors are allowed on the premises.

59 ON SALE BEER AND WINE- SEASONAL - Authorizes the same privileges as a Type 41 . Issued for a specific season. Inclusive dates of operation are listed on the license certificate.

60 ON SALE BEER - SEASONAL - Authorizes the sale of beer only for consumption on or off the premises where sold. Issued for a specific season. Inclusive dates of operation are listed on the license certificate. Wine or distilled!Qirits!ll!Y not be on the premises. Minors are allowed on the premises.

61 ON SALE BEER- PUBLIC PREMISES- (Bar, Tavern) Authorizes the sale of beer only for consumption on or off the licensed premises. Wine or distilled spirits may not be on the premises. Minors are not allowed to enter and remain (warning signs required). Food service is not required.

67 BED AND BREAKFAST INN - Authorizes the sale of wine purchased from a licensed winegrower or wine wholesaler only to registered guests of the establishment for consumption on the premises. No beer or distilled spirits may be on the premises. Wine shall not be given away to guests, but the price of the wine shall be included in the price of the overnight transient occupancy accommodation. Removal of wine from the grounds is not permitted. Minors ace allowed on the premises.

70 ON SALE GENERAL- RESTRICTIVE SERVICE - Authorizes the sale or furnishing of beer, wine and distilled spirits for consumption on the premises to the establishment's overnight transient occupancy guests or their invitees. This license is nonnally issued to "suite--type" hotels and motels, which exercise the license privileges for guests' "complimentary'' happy hom. Minors are allowed on the premises.

75 ON SALE GENERAL- BREWPUB- (Restaurant) Authorizes the sale of beer, wine and distilled spirits for consumption on a bona fide eating place plus a limited amount of brewing ofbeer. Also authorizes the sale ofbeer and wine only for consumption off the premises where sold. Minors are allowed on the premises.

80 BED AND BREAKFAST INN- GENERAL- Authorizes the sale of beer, wine and distilled spirits purchased from a licensed wholesaler or winegrower only to registered guests of the establishment for consumption on the premises. Alcoholic beverages shall not be given away to guests, but the price of the alcoholic beverage shall be included in the price of the overnight transient occupancy accommodation. Removal of alcoholic bevera2es from the gl!lunds is not_p_ertnittcd. Minors arc allowed on the premises.

86 INSTRUCTIONAL TASTING LICENSE-Issued to the holder of and premises of a Type 20 or Type 21 licensee, authorizes the tasting of alcoholic beverages as authorized to be sold from the off-Bale premises, on a limited basis. Requires physical separation from the off-sale premises while tasting is taking place and gen~ requires the participation of a soecificall_y~authorized manufacturer or wholesaler licensee.

ABC-816 (09-11)

160

SPECIAL EVENTS

The Department also issues licenses and authorizations for the retal1 sale of beer, wine and distilled spirits on a temporary basis for special events. The most common arc listed below. Other less common ones are found in Business and Professions Code Section 24045.2, etseq.

SPECIAL DAILY BEER AND/OR WINE LICENSE - (Form ABC-221) Authorizes the sale of beer and/or wine for consumption on the premises where sold. No off-sale privileges. MinorB are allowed on the prc:mises. May be revoked summarily by the Department~ in the opinion of the Department and/or the local law enforcement agency, it is necessary to protect the safety, welfare, health, peace and morals of the people of the State. In some instances, the local ABC office may require the applicant to obtain prior written spproval of the local law enforcement agency. Issued to non-profit organi2.ations. (Rule 59, California Code of Regulations)

DAILY ON SALE GENERAL LICENSE- (FoimABC-221) Authorizes the sale ofbeer, wine and distilled spirits for consumption on the premises where sold. No off-sale privileges. Minors are allowed on the premises. May be revoked summarily by the Department if, in the opinion of the Department and/or the local law enforcement agency, it is necessary to protect the safety, welfare, health, peace and morals of the people of the State. In some instances, the local ABC office may require the applicant to obtain prior written approval of the local law enforcement agency. !Bsned to political parties or affiliates supporting a candidate fur public office or a ballot measure or charitable, civic, fratc:mal or religious organizations. (Section 24045.1 and Rule 59.5 California Code ofRegulations)

CATERING AUTHORIZATION- (Form ABC-218) Authorizes Type 47, 48, 51, 52, 57,75 and 78licensees (and catering businesses that qualify under Section 24045.12) to sell beer, wine and distilled spirits for consumption at conventions, sporting events, trade exlubits, picnics, social gatherings. or similar events. Type 47, 48 and 57 licensees may cater alcoholic beverages at any ABC-approved location in the State. Type 51 and 52 licensees may only cater alcoholic beverages at their licensed premises. All licensees wishing to cater alcoholic beverages must obtain prior written authorization from the Dcpanmcnt for each event. At all approved events, the licensee may exetcise only those privileges authorized by the licensee's license and shall comply with all provisions of the ABC Act pertaining to the conduct of on-sale premises and violation of those provisions may be grounds fur suspension or revocation oftbe licensee'slicense or permit, or both, liS though the violation occum:d on the licensed premises. (Section 23399 and Rule 60.5 California Code of Regulations)

EVENT AUTHORIZATION- {Form ABC-218) Authorizes Type41, 42, 47, 48, 49, 57, 75 and 78licensees to sell beer, wine and distilled spirits for consumption on property adjacent to the licensed premises and owned or under the control of the licensee. This property shall be secured and controlled by the licensee md not viSible to the general public. The licensee slwll obtain prior appruval of the local law enfurcement agency_ At all approved events, the licensee may aercise only those privileges authorized by the licensee's license and shall comply with all provisions of the ABC Act pertaining to the conduct of on-sale premises (including any license conditions) and violations of those provisions may be grounds for suspension or revocation of the licensee's license or pemrit, or both, as though the violation occurred on the licensed premises. (Section 23399)

WINE SALES EVENT PERMIT- (Form ABC-239) Authorizes Type 02licc:.nsees to sell bottled wine produced by the winegrower for consumption off the premises where sold and only at fairs, festivals or cu1tunU. events sponsored by designated tax exempt organizations. The licensee must notify the city and/or county where the event is being held and obtain approval from ABC for each event {Form ABC-222). The Jicensee must also comply with all restrictions listed in Business and Professions Code Section 23399.6.

Note:

1. "Minor" means any person under 21 years of age.

2. Consult Section 25663(b) regarding age of employees in off-sale pn:mis~; consult Sections 25663(a) and 25663.5 regarding age of employee& in on-sale premises.

3. In certain situations, ABC may place reasonable conditions upon a license, such as restrictions as to hours of sale, employment of designated persons, display of signs, restrictions on cotcrtaimnent or dancing, etc. If a licatSC has been conditioned, it will be endorsed as such on the face oftbe license. (Conditional licenses, Sections 23800-23805.)

4. Licensees whose license allows min.orE on the premises may have a "house policy" restricting minors from entering cc:rtain areas of the premises or prohibiting minors in the premises during certain hours.

5. This handout contains only abbrcviatcdfufonnation. Contact your local ABC office for full informll.ti.on before doing anything which may jeopardize your license. Also available from the ABC: Quick Suaunlll}' of Selected ABC Laws (form ABC-608); Alcoholic Beverage Control Act (complete laws); Rules & Regulations; and P-90 (describes privileges of non-retail licenses).

ABC-616 (09-11)

161

Attachment C- Wine Tasting Shops Approved and In-Process

ApJl(_oved shops in operation

# Name UP# Hours of ABC Year Operation License Approved

1 Vino Napoli 09-1 10 a.m.-10 Type 42 2009 p.m.

2 Silvestri 13-4 10 a.m.-10 Type 02 2013 Vineyards p.m.

3 Dawn's Dream 13-15 12 p.m. - Type02 2013 7 p.m.

4 Figge Cellars 11-1 8a.m.- Type 02 2011 (Winefield 10p.m. Gallery)

5 Trio 11-21 Not Type 20 2012 specified and 42

6 Caraccioli Cellars 10-13 10 a.m.-10 Type02 2010 p.m.

7 Galante 03-39 9a.m.- Type02 2003 Vineyards 8p.m.

8 Manzoni Cellars 09-03 10a.m.-10 Type 02 2009 p.m.

9 Blair Vineyards 12-10 10 a.m.- Type 02 2012 8p.m.

10 Shale Canyon 12-11 8a.m.- Type 02 2012 10p.m.

11 Nielsen's Market Not Not Not Not specified specified specified specified

12 Scheid Vineyard 11-11 8a.m.- Type 02 2011 10p.m.

13 Albatross Ridge 13-9 10 a.m.- Type 42 2013 9 p.m.

14 Wrath Wines 1Q-22 10 a.m.- Type 02 2010 lOp.m.

15 Paraiso Vineyards 13-22 11 a.m.- Type 02 2013 7p.m.

16 Southern 14-03 9a.m.- Type42 2004 Latitudes 8p.m.

17 De Tierra 12-17 lOa.m.- Type02 2012 Vineyard 8p.m.

18 Surf N' Sand 07-10 Not Type 21 2008 specified and42

162

163

Applications in Process

# Name UP# Note 1 Otter Cove 14-01 New wine tasting

shop

2 Franscioni 13-4 Code Compliance Triggered

3 Tudor 14-02 Denied by PC and appealed to CC

4 Wild Vine 13-7 Concept review by PC in February 2014

5 Wyland 14-07 Original approved Gallery in 2013, but

permit expired

6 Windy 14..()9 New wine tasting

Oaks shop

7 Da 13-17 PC approved in Giovanni February 2013,

but appealed to cc

8 Surf N' 14-08 Proposed Sand Amendment to

existing Use Permit

164

165

Attachment D- Examples of Approved Tastlna Shops (Photographs and Floor Plans)

Caraccioli Cellars

166

~ I

---0

-.....

..?

"td~m

f,:. t---0

'C

~ --

-0

167

Silvestri Vinevards

168

~--oou 1.t,nn.i. J3~u.no U

1Jicf .JOO

L!i pai.J .. Il:i

169

Dawn' s Dream

Ill

170

i z

' f £

l l

~

t

! t

DAWN'S DREAM WINERY TASTING ROOM

STAIRS DOWN ->

DESK . j '-T-,..-.. •

-~ I I

ti ! ·-· . !

~ r-' . ----J

STORAGE I ' I

i l -::-::-::-==:..~=·~· .. . :_· ... -=J

,--. __, ,_, . I i ig !

--~~ To DOLORFS ST ->

I :§. ! u

; ~ : I

J . f-' I

....J . !.,_~

.·

I v

0 ,_,

0

171

172

Trio (food store and wine tasting)

Art.....-, - MaPity af wall ...

Point Of 5lle

Storqe

' ' r-i Wlaet.t~at n ~· - :;;;"" ·DIIptaycablnll

I 0 I

i ..

18111DIIplay - 0111& Vlnapr~-- MM:hanclle tables

WlndowDIIpl8y

Delores Between 7th & Ocean

Carmel

Total Area 1360 SF (+/·)

173

Dawn's Dream