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Conditional Use Permit No. 2014 -04 April 14, 2014 Page 3 The zoning designation for the site is Light Industrial (M1). The proposed use of the land is a brewery and distillery, both considered manufacturing. Along with the primary manufacturing operation, administrative office, retail and tastings will occur. The M1 zone allows limited office and retail that is ancillary to the primary use. The proposed use is consistent with the M1 zone. Project Analysis There are currently two businesses with a Type 23 ABC license in the city: The Good Beer Brewery located at 207 West Fourth Street and Dean Brothers Brewing Company located at 1006 East Hathaway Street. The Good Beer Brewery was issued CUP 2013 -01 but is not open for business. The Dean Brothers Brewing Company was established in 2007 and is in operation in an industrial section of the city. A Type 23 ABC license allows a small beer manufacturer or micro - brewery with both on and off- premise consumption of alcohol. A micro - brewery is a small -scale brewery operation that typically is dedicated solely to the production of specialty or experimental beers. Although some do operate a restaurant or pub in conjunction with their manufacturing plant, no restaurant is proposed or intended at this location as food sales are not required with a Type 23 ABC license. The Type 4 and 6 licenses will allow a distillery function, which includes the manufacturing and packaging of distilled spirits such as whiskey and rum. There is currently one other Type 6 license in the City: Bear and Eagle Products located at 1425 East Borchard Avenue, which manufactures vodka, The license types requested allow tasting of alcohol produced or bottled by the licensee for on- premise consumption, The applicant has indicated that tasting, where alcoholic samples are offered for a charge, will be eight ounces per customer. The proposed use may also sell beer to consumers for consumption off the manufacturer's licensed premises; however, selling individual bottles is not the primary business plan as the tasting room is small, and their target market is bulk sales to the local and regional consumers and restaurants. The proposed project is a manufacturing use with a small retail component consistent with the M1 zone allowance for an industrial use providing ancillary product sales and service. The tasting area, while allowing consumption of alcohol, will be limited to products made by the applicant. In that respect, it differs from bars that may sell a variety of alcoholic products that are not manufactured on -site. Additionally, bars can encompass a majority of their floor area to the sales and consumption of alcohol, while the proposed project will be limited to no more than 5% of the floor area for product sales and consumption. Lastly, the hours of operation for the tasting area are limited and do not extend into the late night hours as bars typically operate. The license types are further described below per the State Alcohol Beverage Control Department: Type 4, Distilled Spirits Manufacturer - "Any person who produces distilled spirits from naturally fermented materials or in any other manner" (Section 23015). The functions of this type of license, in addition to that of production, include packaging, bottling, rectifying, flavoring and others as found within Section 23356. The functions apply only to distilled spirits; they do not include wine or beer, 31A-5