TELLER COUNTY PLANNING COMMISSION · Planning Commission Hearing: January 8, 2018 FINAL Page 1 TELLER COUNTY PLANNING COMMISSION . Regular Meeting: January 8, 2019 . Agenda Item VI

File No. CUP-Z18-0071 Planning Commission Hearing: January 8, 2018 FINAL Page 1

TELLER COUNTY PLANNING COMMISSION Regular Meeting: January 8, 2019

Agenda Item VI

Consider a request for a Conditional Use Permit for a Brew Pub as part of the Iron Tree Restaurant

located on a 0.15-acre parcel zoned C-1 located in the NE1/4 SE1/4 of Section 2, Township 13S, Range 71 W of the 6th P.M., Teller County, Colorado, 37 Costello Avenue, Florissant, Colorado, 80816.

STAFF REPORT File No. CUP-Z18-0071

APPLICANT: JOCELYN ABRIZZI – IRON TREE LTD. (APPLICANT) DERBY HOLDINGS LLC (PROPERTY OWNER) REQUEST: Approval of a Conditional Use Permit (CUP) for Brew Pub STAFF: Dan Williams, Teller County Planning Official LEGAL DESCRIPTION: PT L1W, PT L2N, All L3N-4N FLOR ORIGINAL + PT VAC COSTELLO AVE FLOR AM NO 1 AS DESC AT 525696 a Tract of Land located in the NE1/4 SE1/4 of Section 2, Township 13S, Range 71 W, of the 6th P.M., Teller County, Colorado PID 3347.024080020 / Account R0000177 [see APPENDIX A: Zoning Map] ZONE DISTRICT: Commercial (C-1) [see Appendix A] Publication Date: December 26, 2018 (Pikes Peak Courier View) Posted Notice: December 7, 2018 Date of Staff Report: December 11, 2018 STAFF RECOMMENDATION: Approval with Conditions 1. Summary of Request The Applicant is requesting a CUP for an existing building and property zoned C-1 inside of the ‘Community Center’ area of the Growth Area of the town of Florissant. As currently configured, the Iron Tree Restaurant is a permitted (use by right) in the C-1 zone and does not require a Conditional Use Permit (CUP). This request is for the inclusion of a small Brew Pub inside the existing 1860 SF building and will require the issuance of a CUP pursuant to Section 8.3.E.1 Brew Pub for a brewing operation as part of a restaurant with sales and distribution limited to patrons of the restaurant and the general public.


2. History and Applicant’s Vision The Iron Tree Restaurant, formerly ‘Oney’s Pizza’, was constructed in 1959 and lies in the Florissant town Center adjacent to US HWY 24 and Costello Road. It lies in close proximity to Costello’s Coffee Shop, the Mountain Burger, and the Thunderbird Bar and Grill.

The Applicant’s intent for the Iron Tree is a relaxed casual dining experience with quality food made from scratch. The indoor seating capacity of the Iron Tree Restaurant is significantly lower (38 seats) than that of the previous Oney’s establishment which had 72 indoor seats and 50 outdoor seats. Additionally, the previous owners, Mr. Oney and Mr. Gibbons, had rented out the garage area on this property for local consignment and craft sales. [The Applicant and current owner only uses this area for storage and has no other plans for the space]. The Applicant asserts therefore, that their restaurant, even with an internal brewpub, will have less impact to adjacent and adjoining property owners than the previous establishment or any other historical use since 1959. In keeping with their vision of homemade ‘from scratch’ food the Applicant’s request stems from their intention to make ‘home made’ beer to augment their existing alcohol sales as an option for customers. The Applicant does have a current Liquor license and is in full compliance with Senate Bill 18-243, to include having all of its servers and employees trained in checking client identifications, and in identifying fraudulent identification. All servers are over 21 years of age and two of them are certified for “Training and Intervention Procedures” (TIPS) and received their certification from the Culinary Institute of America.

3. Project Scope and Brew Pub Design The specific equipment (tanks/devices) used for the Brew Pub beer production are very limited and of small size and quantity. The brewpub will be contained in the basement of the Iron Tree Restaurant in a portion of the 15’x20’ pre-existing room. The equipment includes a two-barrel brew system, a bright tank, five small fermentation tanks, a sewage (brew waste) pump, a trench drain, a hand sink and a mop sink. This basement room will also house the empty kegs and a limited area for bakery refrigeration and preparation. The remainder of the basement, comprised of several small rooms, contains two refrigerated spaces for storage of full beer kegs and soda, which is used for current restaurant operations, a washing machine and dryer, and an additional dry-good storage area. The beer produced on the Iron Tree property will be labeled “Funky Town Brewery” beer.


4. Brew Pub Development Concept and Timeline

Phase 1 – CUP approval to 6 months – installation of:

1. One (1) two BBL Colorado Brewing Company Brew system ( BBL =Beer Barrels) 2. One (1) 60 gallon Bright Tank 3. Five (5) 55 gallon fermentation tanks 4. Crowler bottling system.


Phase 2 –Under LUR Section 8.3.E.1, a Brew Pub may engage in sales and distribution of its product to patrons if its restaurant and the general public, including wholesale and licensed retailers in an amount up to 8,333,33 barrels (11,355,83 hectoliters) per year. If the sales and distribution to wholesale and licensed retailers exceeds 8,333.33 barrels per year, then the Applicant will be required to apply for and receive approval of an amendment to this CUP to be classified as a Craft (Micro) Brewery under LUR Section 8.3.E.2.


Site Description, Planning Region and Zoning The existing building is in the town of Florissant adjacent to Costello Avenue and is zoned Commercial (C-1) and is located inside of the ‘Community Center Area’ as defined by the Florissant Regional Plan as adopted by the Planning Commission on 11/10/1998. This location is well within the designated growth zone in the Master Plan for the town of Florissant and no change to the outward appearance of the existing building will occur as the result of this request. It is consistent with the Master Growth Plan, and its purposes, goals, objectives and policies. The structure and planned use are compatible with the character of surrounding land use in that there are several other establishments serving alcohol and food within ¼ mile of this restaurant. Given the scale and scope of the proposed brewpub inside of the pre-existing structure, Staff asserts there will be no negative or adverse impact to adjacent or adjoining property owners. Zoning of properties immediately abutting the site include:

CURRENT USE ZONING North Community Center Area Commercial C-1 East Community Center Area Commercial C-1 South Community Center Area Commercial C-1 West Community Center Area Commercial C-1

State Licensure The Applicant has obtained all required Colorado State and Teller County liquor licenses and a Colorado Retail Food License from State Health Department, CDPHE. Currently the Iron Tree has been operating as a restaurant that serves alcohol obtained commercially for a year and ½ without incident. Access The structure is located at 37 Costello Road north of US 24 and is accessed from Costello Road. No changes to this existing access are proposed as part of this request. Due to the age of the development (1959), no access/driveway permit was found during the referral process by the Teller County Department of Transportation. The permit was applied for and issued and a copy of it is contained in this report. Existing Structures There is a portion of the existing covered patio that lies inside of the ROW for Costello Avenue. Based on the age of the Structure (1957), a review of Teller County building records available since 1957, the original 19th Century Plat of the Town of Florissant, and the subsequent widening and paving of CR 31 (which turns into Costello Avenue), the Teller County Department of Transportation’s Right of Way Supervisor has recommended a Revocable License to Encroach be applied for. In his referral comments, the ROW Supervisor indicated that this license is unrelated to the request for a brewpub. Staff notes that the Revocable License to Encroach has been applied for as of the writing of this staff report. Based on that application and impending approval, any


decision on the CUP request should not be impacted by this encroachment. A copy of the final approved Revocable License to Encroach will be provided to the Planning Department as part of the record once received. Water Supply Both the restaurant and by extension, the brewpub, will receive its water from approved connections from the Florissant Water and Sanitation District (FWSD). Waste Disposal The current facility has approved connections to the Florissant Water and Sanitation Waste Water Utility for sanitation. Absolutely no brew waste from the production of the beer product or any by- product of the brew production will be introduced into the FSWD water utility. In preliminary discussions and concept design with Florissant Water and Sanitation (FSWD), due to the small amount of brew waste and predicted Biological Oxygen Demand (BOD) coupled with the current unused capacity of the Florissant Water and Sanitation Facility, the Applicant and the treatment facility felt that a metered amount of brew waste from a 50 gallon waste holding take would allow for the waste to flow into the treatment plant with no adverse impact or undue burden being place on the facility. Based on this decision by Florissant and Water Sanitation, their initial formal agency review dated October 23, 2018 indicated, “Our water operator and waste water operator investigated this and found no problems with the micro-brewery for the Iron Tree”. As an added precaution, however, a limited amount of brew waste and BOD was to be examined prior to actual release into the sewer tap from Iron Tree in order to confirm the predicted analysis of no adverse impact. Subsequent to the October 23, 2018 however, impact was found in that the Biological Oxygen Demand (BOD) from the given Iron Tree sample registered a higher than expected reading. As a result, it was determined that the brew waste or any by product will NOT be introduced into the Iron Tree Tap existing fixtures or into the Florissant Water and Sanitation system by any other means or access. Instead, the yeast sludge and other brew waste bi-products, to include spent grain, will be contained and stored on premise and will be removed by Teller County Waste who has agreed to take this organic waste. It is a relatively small amount due to the size of the brew system and will be removed weekly from the premises (currently on Tuesdays). Other food waste has already been removed in a similar fashion since the restaurant has been in operation and this will be mixed into that compost stream. [See Appendix F]. An alternative method involving delivery to a number of local farms for composting and feeding was explored before reaching the above solution. [Organic waste disposal for commercial operations can only occur on A-1 zoned property and then only with a Special Use Permit.] Based on this disposal method, in its November 19, 2018 letter, the FSWD agrees that no undue burden on the wastewater operations of the district will occur. Only normal domestic strength wastewater from the Iron Tree will enter the FSWD wastewater treatment system with no brew waste or by-product from the brewery being released into the tap and into the FSWD. [That method now being removal by Teller County Waste and not the farms mentioned in the letter]. Infrastructure and Fire Protection


Adequate electrical, natural gas, water and wastewater already exists in the Florissant Community Center and currently services the Iron Tree Restaurant. Fire protection to the property is through the Florissant Volunteer Fire Department. Critical Areas. The Iron Tree Restaurant does not lie within a FEMA floodplain and the site has been developed since 1957.

5. SUBMITTAL REQUIREMENTS

6. REVIEW AGENCY RESPONSES The agencies below were mailed a referral. [See APPENDIX E: Referral Responses for a full copy of agency responses].

REVIEW AGENCY AGENCY COMMENT Teller County Attorney Staff Report Reviewed Intermountain Rural Electric Association (IREA)

Email dated October 22, 2018. The Association has existing overhead facilities and will maintain the facilities and easements. Pad mounted transformer is required for loads greater than 50 kVA. 400-amp service entrance is rated at


REVIEW AGENCY AGENCY COMMENT 320 amps continuous loads and therefore loads greater than 320 amps continuous will require EUSERC metering. The association will need complete one line, panel schedules and site plans for IREA engineering. Upgrades in the future will require owner to meet IREA requirements. The Association will require all structures and landscaping to maintain adequate clearances to the underground transformer and allow the Association to access for maintenance purposes. The Association has a strong concern in regards to potential screening of electrical equipment: we ask that the underground transformer location be provided prior to approval of this application. Brooks Kaufman, Lands and Rights of Way Director, IREA

Intermountain Rural Electric Association (IREA)

Email dated November 15, 2018 (post site visit). The Association and Applicant have resolved the referral comments. The Association has no further comments. Brooks Kaufman, Lands and Rights of Way Director, IREA.

Colorado Natural Gas Email dated October 3, 2018. The only concern I can see is that the trenching of the new single-phase electric line may conflict with our existing service line (gas). The owner needs to insure the service line is located prior to any of the electric trenching operations (accomplished during IREA work). Graham Christy, Manger, Engineering, Colorado Natural Gas.

Teller County Building Memorandum dated October 18, 2018. The Building Department supports the request to add a craft microbrewery. They have always pulled the required permits and have had all of the work inspected. Terry Brunette, Teller County Building Official.

Teller County Environmental Health Memorandum dated October 11, 2018. On March 31, 2016, the Colorado Department of Public Health and Environment (CDPHE) issued an interpretative memo that outlines the exemption of breweries or brewery portions of existing retail food establishments from licensure as a retail food establishment and regulation under the Colorado Retail Food Establishment Rules and Regulations. However, the applicant shall assure that the proposed operation is compliant with the applicable laws and regulations enforced by the Colorado Department of Revenue (DOR) Liquor Enforcement Division. Andrew Lemmons, Teller County Environmental Health Officer.


REVIEW AGENCY AGENCY COMMENT Teller County Public Works – Department of Transportation

Memorandum dated October 19, 2018 - It appears from the Assessor site that development began on this property in 1959. No evidence of any driveway/access permit exists in our system serving the property. Request driveway/access permit be applied for. If possible to provide on-site parking, applicant should do so. Generally, parking on public right-of-ways is not prohibited so long as it does not interfere with safe two-lane travel, jeopardize safety or hinder maintenance activities. This should not be construed as a right. The revocable license to encroach is a matter entirely not related to this use and the property owner will need to work through Public Works on that request. Bryan Kincaid, Teller County Rights-of-Way Supervisor.

Colorado Department of Transportation CDOT _______________________________ Colorado Department of Natural Resources, DNR – Water Division

Email dated November 5, 2018 – It is my understanding that the CUP would allow the sale and consumption of home brew at the restaurant. The State Highway Access Code requires a new access permit whenever the land use changes to generate an increase of greater than 20% of existing. Therefore, if the addition of the sale of home brew will not increase traffic, a new access permit with NOT be required. Valerie Sword, Permits Manager, Traffic and Safety, CDOT ________________________________________________ Email dated October 19, 2018 – The Colorado Division of Water Resources has no comments or concerns regarding file No. Z18-0071 for the Iron Tree Craft Microbrewery. Sarah Brucker, P.E. Water Resource Engineer, DNR

Florissant Water and Sanitation District (FSWD)

Email dated October 23, 2018 – Our water operator and our wastewater operator investigated this and found no problems with the microbrewery for the Iron Tree. Paul Kennedy, President of the Board, FSWD

Florissant Water and Sanitation District (FSWD)

Letter dated November 19, 2018. – Due to the high reading of the Biological Oxygen Demand (BOD) from their given sample the Iron Tree Restaurant and their Funky Town Brewery will be isolating the yeast sludge from the brewery and mixing it with their compost stream before delivering it to two local area farm. FSWD plant operators agree with this method as it will not create an undue burden on wastewater operations of the district and will keep the Biological Oxygen demand within tolerances. Paul E. Kennedy, President of the Board, FWSD


7. DISCUSSION OF MAJOR CONCERNS AND ISSUES Staff has no major issues or concerns with this request. The brewing equipment will be wholly contained inside of an existing building, which has been on this 0.15-acre parcel since 1959. It has been operating as some type of a restaurant since then, lies in the Florissant Town Center, and is zoned C-1 commercial. Commercially obtained alcohol is currently being served as part of the Iron Tree restaurant and was part of the previous restaurant. All appropriate liquor licenses have been obtained and are in place. In this case, the Applicant contemplates serving alcohol made on premise, or ‘home brew’ to compliment the homemade food as well. This home brew will augment the other alcohol already available. It its submittal materials the Applicant is clear that there is no intent to make this a bar, but rather to offer homemade beer as a part of their intent to offer a relaxed casual dining experience with quality food made from scratch. The Brew Pub and its associated equipment are extremely limited and of small size and quantity, and will be contained in the basement of the Iron Tree Restaurant in a portion of the 15’x20’ pre-existing room. No impact from the production of on premise beer (sounds, smells or noise) will be noticed by adjacent or adjoining property owners. All required County and State liquor licenses have been applied for and received. Staff notes that a restaurant, including those that serve alcohol [subject to an approved liquor license] is a use by right in the C-1 zone and the Iron Tree is in the Community Center portion of downtown Florissant which is a growth area. A CUP is necessary in this case only because some of the beer that will be served at the Iron Tree will be made on premise. At maximum production capacity, the brewing system depicted in this report can produce about 1000 barrels a year. This is far less than the 51,666.67 barrels that could be produced under a conditional use permit pursuant to Section 8.3.E.1 of the Teller County Land Use Regulations. In terms of a Revocable License to Encroach, there is a portion of the existing Patio that lies in the Right of Way for Costello Avenue (CR 31) which will be addressed through Teller County Public Works and the Department of Transportation. The ROW supervisor in his referral comment letter [attached] indicated that it is not related to this use request. That application process has been initiated with Teller County Public works and the driveway/access permit has already been obtained. A considerable amount of work was expended by the Applicant in the matter of brew waste disposal with three alternatives being explored. Under no circumstance will it be introduced into the Florissant Water and Sanitation Wastewater utility. Based on the small amount of weekly waste produced, all of it organic (spent grain and about a gallon of brew yeast); it will be removed from the premises by Teller County Waste Disposal in the same manner as other organic food waste is removed on a weekly basis. 8. STAFF FINDINGS


Conditional Use applications must conform to the standards specified in Section 8.2.D: Special Review Use Standards and 8.3.D.4.E: Breweries and Distilleries of the Teller County Land Use Regulations (TCLUR). The standards and requirements and the corresponding staff findings are listed in the table below.

STANDARD STAFF FINDING 8.2.D.1. Consistent with Master Plan. The proposed Special Review Use is appropriate for its proposed location, and is consistent with the purposes, goals, objectives and policies of all applicable legislatively adopted Teller County master plans or maps.

This standard is met. The property falls within the Teller County Growth Management Plan and more specifically the Florissant Community Center of the Florissant Regional Plan. There are multiple businesses within ¼ mile of the Iron Tree who all serve alcohol in various settings. The proposed use is appropriate for its location and consistent with the purposes, goals, objectives and policies of this legislatively adopted Plan.

8.2.D.2. Compatibility. The proposed Special Review use is appropriate for its proposed location and compatible with the character of surrounding land uses, and does not create a nuisance.

This standard is met. The proposed use is appropriate for its proposed location, is compatible with the character of surrounding land uses, and does not create a nuisance. All development associated with this request will occur inside the existing structure with no impacts to adjacent and adjoining property owners.

8.2.D.3. Zone District and Use Standards. The proposed Conditional Review use complies with the Standards of the zone district in which it is located and any Standards applicable to the particular use. Where the Standards are different, the more stringent applies.

This standard is met. The proposed use complies with all applicable C-1 standards and is in the Florissant Community Center and area for Growth within the Florissant Regional Plan.

8.2.D.4. Design Minimizes Adverse Impact. The design of the proposed Special Review use minimizes adverse impacts to adjoining and/or adjacent and surrounding lands, water and air resources, and wildlife habitat, scenic and other natural resources, and existing infrastructure.

This standard is met. The existing restaurant has been on the property location since 1959. It is a use by right in the C-1 zone and has served alcohol. The small internal room will house all of the equipment required for brewing. Water is provided for by Florissant Water and Sanitation and residual brew waste will be mixed in with food waste and provided to local farms.


STANDARD STAFF FINDING 8.2.D.5. Development Standards. The proposed Special Review use complies with the appropriate Standards in Chapter 4: Infrastructure, Chapter 5: Site Development, and Chapter 6: Critical Areas of these Regulations.

This standard is met. The proposed use has been evaluated and found to be in compliance with all applicable and appropriate standards in Chapters 4, 5 and 6 of the Teller County Land Use Regulations.

8.3.D.4.E.1.2 Brew Pub A brewpub is a brewing or distilling operation that manufactures not more than 51,666.67 barrels (70,406.165 hectoliters) per year and that is specifically attached to and an explicit part of a restaurant and the general public, including wholesale to licensed retailers in an amount of up to 8,333.33 barrels per year.

This standard is met. The proposed conditional use permit complies with all applicable standards and requirements for a Brew Pub.

9. RECOMMENDED MOTION I move that the Planning Commission APPROVE WITH CONDITIONS the request for a Conditional Use Permit for a Brew Pub as part of the Iron Tree Restaurant, in an existing 1860 sq. ft. building, on a 0.15 acre parcel zoned C-1 located in the NE1/4 SE1/4 of Section 2, Township 13S, Range 71 W of the 6th P.M., Teller County, Colorado, 37 Costello Avenue, Florissant, Colorado, 80816, adopting the staff findings of the staff report dated December 11, 2018, and further finding that the application complies with such pertinent, individual conditions of use specified in the granting of a Conditional Use Permit, is compatible with the general provisions of the Teller County Land Use Regulations, as well as provisions of the C-1 zone district in which such use is permitted, and that satisfactory provisions and arrangements have been made concerning the criteria for approval, and with adoption of the following CONDITIONS OF APPROVAL: A. Subsequent Applications. Any subsequent development applications, including but not

limited to Rezoning, Special Review Use Permits (or amendment thereto), Major Building Site Plan Reviews, Building Permits, Sewage Disposal Permits, etc., for the lands subject to this application shall comply with the areas and uses as depicted on the site plan filed with the CUP application. Approval of this CUP does not imply, indicate nor suggest approval, likelihood, or availability of approval of, nor does it in any way approve or grant, any subsequent land use permits, platting or other development applications or requests.

B. Licenses/Permits/Authorizations. At all times during occupancy of the site and operation of the Brew Pub, the Applicant shall obtain, have, maintain, be subject to and comply with all local, state and federal terms, requirements, conditions, codes, ordinances, regulations, permits, licenses and/or other authorizations pertaining to the use and supporting facilities and infrastructure, as they may be amended or replaced from time to time, including but not limited to:

1. The auditing of Special Review Use Permits (LUR §8.2.E), including any conditions

related to time limits, duration, abandonment, and extension (LUR §8.2.G).


2. Submission of an application for, and approval (as applicable) of, any and all required

Teller County Building Permit, Major Building Site Plan Review, Onsite Wastewater Treatment System (OWTS) Disposal Permit, Driveway/Access Permit, Electrical Permit, Mechanical Permit, Plumbing Permit, compliance inspection, and/or other necessary and applicable permits and/or applications.

3. Submission to the Planning Department of copies of any and all approved and valid

local, state or federal licenses, permits, and authorizations.

4. Submission to the Planning Department a copy of the Teller County Revocable License to Encroach once issued to the Applicant.

5. Applicant will be required to maintain a Colorado Retail Food License for food served

as a function of their liquor license requirements.

6. Applicant will be required to maintain a Colorado State and Teller County liquor license.

C. Additional Conditions

1. Production Limit. The Brew Pub will be limited to 51,666.67 barrels per year as

outlined in Land Use Regulation Section 8.3.E.1 for a Brew Pub. If the sales and distribution to wholesale and licensed retailers exceeds 8,333.33 barrels per year, then the Applicant will be required to apply for and receive approval of an amendment to this CUP to be classified as a Craft (Micro) Brewery under LUR Section 8.3.E.2.

2. Signs. No additional on- premise signs or entrance signs relating to the Brew Pub are

requested or authorized in addition to the existing Iron Tree sign.

3. Wastewater Disposal.

a. Only normal strength wastewater and flows from the Iron Tree Restaurant will be sent down existing fixtures to the Florissant Water and Sanitation Districts Waste Water Utility. Brew production waste will not be disposed of into the Florissant Water and Sanitation District’s Waste Water Utility.

b. Discharge Authorization. In the event that the current agreement to have the brew

waste along with food waste taken off premise by Teller County Waste Disposal terminates, this Conditional Use Permit shall automatically and immediately terminate and be of no further effect, unless and until a new agreement, in writing, is submitted as evidence acceptable to the Teller County Planning Department, transferring Authorization to Discharge to a new entity acceptable to Teller County.

D. Representations. Unless otherwise modified by this CUP, all material representations of

the Applicant in its application submittal and in public hearing shall be binding.


APPLICANT PRESENTATION PUBLIC COMMENT

APPLICANT RESPONSE PLANNING COMMISSION DELIBERATION & MOTION


Appendix A County Zoning Map


Iron Tree (formerly Oney’s Pizza) lies in the Community Center Portion of Florissant, zoned C-1 and is a growth area


Appendix B Planning Regions


Florissant Community Center C-1 zone and growth area


Appendix C Aerial Map of Iron Tree in Florissant


Iron Tree Restaurant and future ‘Funky town Brewery’


Appendix D Site Plan


Patio area requiring a Revocable License to Encroach


APPENDIX E: Referral Agency Responses














APPENDIX F: Teller County Waste Letter accepting Brew Waste



APPENDIX G: Public Comment

(None received as of the writing of this report)

Documents

TELLER COUNTY PLANNING COMMISSION · Planning Commission Hearing: January 8, 2018 FINAL Page 1 TELLER COUNTY PLANNING COMMISSION . Regular Meeting: January 8, 2019 . Agenda Item VI