PROPOSED AMENDMENT TO THE DEFINITION OF TAVERNS, PRIVATE CLUBS AND DRINKING ESTABLISHMENTS To review the proposed zone text amendment Approval of the zone text amendment (8-0) A petition has been filed by Martin McFadden with Blue Ox Development to amend the definitions related to drinking establishments as well as the regulations for drinking establishments in the Business Exchange Historical (BEH) zone. While these requests are closely connected, the two requests will be separated into different items for Council consideration. The proposed amendments with this item would eliminate the definitions for tavern and private club and replace them with a new definition for a drinking establishment. The proposed definition for drinking establishment in the City’s code would cover the different types of alcohol-serving establishments defined in state code and regulated in the City’s code. The proposed definition for drinking establishments would also clarify that for the purpose of the City’s zoning and number of drinking establishments per linear block, alcohol sales must exceed 50% of total annual receipts. A similar proposal to update the code related to the definition of taverns and private clubs came before the Council in 2016; however, no final action was taken on that proposal. The 2016 amendments came in conjunction with a petition to amend the definition of a linear block. Martin McFadden with Blue Ox Development has been working with Ogden’s Own Distillery to make several changes to the City’s code related to events within the Business Exchange area and to the City’s zoning definitions for alcohol licensing. Mr. McFadden has filed a Ogden City Council Work Session: June 9, 2020 1 petition to make the requested amendments. The petition includes two separate but closely related changes. The first set of changes is specific to definitions within the City’s code related to establishments serving alcohol and the second is specific to the Business Exchange Historical (BEH) zone. While related, these items will be addressed as individual Council actions. The proposed amendment to the definitions for establishments serving alcohol relates to the definitions in the zoning ordinance. Currently, the City’s zoning ordinance provides definitions for taverns and private clubs. Each of these types of businesses include alcohol service but each have specific restrictions and regulations. Private clubs generally refer to establishments that require membership while taverns are open to the public but restrict alcohol sales to beer only. Recent state law changes have made these definitions inconsistent with the state regulations for alcohol licensing. Utah State Code Title 32B, Alcohol Beverage Control Act, provides regulations for licensing of different types of alcohol-related sales and service. This section of state code, for the purpose of this petition, provides definitions and regulations for alcohol licensing of restaurants and bars. The state code offers three types of licenses for restaurants and includes a beer only license, limited service license and a full-service license. The difference with these licenses is generally related to the type of alcohol served but each requires that alcohol sales not exceed 30% of total annual receipts and that alcohol is ordered with food. A bar license allows alcohol sales to exceed 30% of total receipts and allows alcohol service with or without food. Bar licenses are issued for equity clubs, fraternal clubs and for bars. Equity clubs, like a country club, and fraternal clubs require membership while a bar is a social drinking establishment and is not limited by membership. The City’s current zoning code does not accurately reflect the different types of licenses offered by the state code. The proposed amendment would eliminate the definitions for taverns and private clubs and put those types of establishments under the umbrella of drinking establishments. This definition allows more flexibility and allows a single definition in the zoning ordinance to accommodate the different state licenses. Ogden City Council Work Session: June 9, 2020 2 As proposed for the City’s zoning code, and in comparison to the state licenses, a drinking establishment would only be classified as such if alcohol sales exceed 50% of total annual receipts. As an example, if a restaurant serves alcohol and has alcohol sales of less than 30%, the establishment would need one of the three state restaurant licenses, depending on the type of alcohol served, and would not be considered a drinking establishment under the City’s zoning ordinance. If, however, an establishment that serves food and has alcohol sales between 30% and 50%, that establishment would need a state bar license but would not be considered a drinking establishment under the City’s zoning ordinance. If alcohol sales exceed 50% of total annual receipts, the establishment would need to be licensed by the state as a bar and would be considered a drinking establishment under the City’s zoning ordinance. If sales of alcohol exceed 50% of total annual receipts, the establishment would be considered a drinking establishment by the City under the proposed amendments. Under the City’s zoning ordinance, drinking establishments are limited to two per linear block, which includes both sides of a street. A restaurant with less than 50% total alcohol sales would not be subject to the two-per-block restriction. The petition replaces the definitions of tavern and private club and replaces them with a single definition of drinking establishment. These updates are made throughout Title 19, Zoning, wherever these definitions appear. There are no new regulations proposed with this part of the petition. There is new language related to the definition of drinking establishments and some additional language in the definition of a restaurant to clarify that a restaurant must have less than 50% of its revenues come from the sale of alcoholic beverages. The Planning Commission reviewed the proposal at its February 4, 2020 meeting and forwarded a recommendation of approval to the Council with a vote of 8-0. The Commission’s recommendation was made with the finding that the amendments were consistent with the general plan, zoning ordinances and policies of the City, and that there is good reason for the amendments. No public comment was received at the meeting. Ogden City Council Work Session: June 9, 2020 3 1. Transmittal 2. Drinking Establishment amendments ordinance 3. Planning Commission Report 4. Petition 2019-24 Administrative Contact: Greg Montgomery, AICP (801) 629-8931 Council Staff Contact: Glenn Symes, AICP (801) 629-8164 Ogden City Council Work Session: June 9, 2020 4 ORDINANCE NO. AN ORDINANCE OF OGDEN CITY, UTAH, AMENDING THE OGDEN MUNICIPAL CODE BY AMENDING SECTIONS 15-2-4, 15-2-5, 15-2-7, 15-2-13, 15-2-17, 15-2-19, 15- 2-21' 15-6-3, 15-12-3, 15-13-13, 15-21-2, 15-24-4, 15-33-2, 15-33-5, 15-34-2, 15-38-5, 15- 39-3, AND 15-41-7 TO UPDATE CITY ORDINANCE REGARDING TAVERNS AND OTHER DRINKING ESTABLISHMENTS; AND BY PROVIDING THAT THIS ORDINANCE SHALL BECOME EFFECTIVE IMMEDIATELY UPON POSTING AFTER FINAL PASSAGE. The Council of Ogden City hereby ordains: SECTION 1. Section amended. Section 15-2-4 of the Ogden Municipal Code is hereby amended to read and provide as follows: 15-2-4: ["C" DEFINITIONS:] CABARET: A restaurant with beer license, restaurant with liquor consumption license, [tavern, private club] drinking establishment, or other business licensed for the on premises consumption of alcoholic beverages, which business is licensed to permit its patrons to dance or to entertain its patrons with live performers who sing, dance or play musical instruments. Cabarets do not include sexually oriented businesses. CANNABIS: All species of the genus cannabis and all parts of the genus, whether growing or not; the seeds of it; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. The term does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, except the resin extracted from them, fiber, oil or cake, or the sterilized seed of the plant which is incapable of germination. Any synthetic equivalents of the substances contained in the plant cannabis sativa or any other species of the genus cannabis which are chemically indistinguishable and pharmacologically active are also included. CANNABIS CULTIVATION FACILITY: A person that: (a) possesses cannabis; (b) grows or intends to grow cannabis; and (c) sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis processing facility or, as defined in Utah law, a medical cannabis research licensee. CANNABIS PROCESSING FACILITY: A person that: 1 (a) acquires or intends to acquire cannabis from a cannabis production establishment or a holder of an industrial hemp processor license under Utah State Code Title 4, Chapter 41, Hemp and Cannabinoid Act; (b) possesses cannabis with the intent to manufacture a cannabis product; (c) manufactures or intends to manufacture a cannabis product from unprocessed cannabis or a cannabis extract; and (d) sells or intends to sell a cannabis product to a medical cannabis pharmacy or, as defined by Utah law, a medical cannabis research licensee. CANNABIS PRODUCT: A product that: (a) is intended for human use; and (b) contains cannabis or tetrahydrocannabinol. CANNABIS PRODUCTION ESTABLISHMENT: A cannabis cultivation facility, a cannabis processing facility, or an independent cannabis testing laboratory. CAR WASH, LAUNDRY TYPE: A structure or portion thereof containing facilities for washing passenger automobiles, using production line methods such as, but not limited to, chain conveyor, movable or revolving cleaning brushes, blower, steam cleaning, or similar mechanical devices.