As discussed in the Manager’s Digest in December, Staff has received renewed interest from a potential business called Arlington Beer Company, which is interested in opening a craft brewing facility and a tap room within the Hickory Kensington TIF district. They are seeking a liquor classification to permit beer to be produced on the premises, beer to be consumed on the premises, and the retail sale of packaged beer including bottles, crowlers (32oz cans), howlers/growlers (32/64 oz. glass, steel or ceramic jug) and kegs.  Their business model does not include a kitchen but they would offer their customers the option to order food from local eateries.

Staff had planned on exploring breweries as part of an overall review of our liquor classifications at a later date. When polled in December, the Board indicated a preference for taking the Craft Brewery issue on earlier given the presence of a potential business. An overall liquor review is still planned for later this year. At this time, Staff is looking for direction from the Village Board on whether or not new liquor classifications should be created for breweries, brew pubs, and/or tap rooms. This will allow the Arlington Beer Company group to better understand the Board’s will on this issue so they can determine whether or not to pursue their concept.

There seems to be renewed interest in our region for craft breweries that include tap rooms. It should be noted that in the past several years, the Village has had requests by people interested in opening up a brewery. They were informed that the Village doesn’t permit the manufacture of alcoholic beverages and doesn’t have a liquor license to accommodate that kind of use. 

Current trends in the marketplace have taken place so that other municipalities are now permitting these kinds of uses. With the Board’s interest in encouraging additional entertainment uses within our community, this seems the right time to look at creating an additional liquor classification.

A brewery is any class of brewer or craft brewer licensed to manufacture beer under the Illinois Liquor Control Act. A microbrewery or craft brewery is a brewery that produces small amounts of beer, typically on a much smaller than large-scale corporate breweries, and is independently owned. Such breweries are generally characterized by their emphasis on quality, flavor and brewing technique.

A survey of 14 municipalities (including Arlington Heights) showed that 12 of the municipalities permit microbreweries. Only Arlington Heights and Rolling Meadows do not permit microbreweries. The twelve communities that permit microbreweries include: Buffalo Grove, Des Plaines, Elgin, Elk Grove, Evanston, Hoffman Estates, Mount Prospect, Naperville, Palatine, Schaumburg, Skokie, and Wheeling.

Based upon available data, five of the surveyed municipalities also permit tap rooms, which do not require that food be available. The five are Buffalo Grove, Elk Grove, Elgin, Evanston, and Naperville.

There are other municipalities in the area that also have microbreweries with tap rooms and these include: Itasca, Lake Zurich, Long Grove, Glenview, Glen Ellyn, Mundelein, Roselle and Wauconda.

Types of uses that the Board should consider in determining whether to create liquor licenses related to the brewing of beer are: brew pubs, which are restaurants that also brew beer on site; tap rooms, which brew beer on site and permit consumption but do not serve food; and breweries, which are places where beer is made and may have a tap room or tasting component as an ancillary use.

If the Board is interested in pursuing a new liquor license classification to permit a brewery, it is understood a discussion will also be needed regarding which zoning district they should be permitted in. Planning has some preliminary ideas on possible zoning for different uses and these are described below:

• Brew Pubs: It would seem appropriate to treat these as restaurants, meaning they would need a special use (unless they were under 4,000 square feet, in which case they can get a waiver). Restaurants are permitted (with a special use or waiver) in the B-1, B-2, B-3, and B-5 Districts. B-1 and B-2 are business districts, B-3 is a general service, wholesale and motor vehicle district, and B-5 is the downtown business district.

• Tap Rooms: It is thought that they could be allowed in the in B-2, B-3, and B-5 districts with a special use, and only if they are smaller than 4,000 square feet.

• Brewery with or without a tap room as an ancillary use: As these are primarily manufacturing facilities, it is thought to permit them only in the manufacturing districts (M-1 and M-2) and only up to 20,000 square feet and to not permit them at all if they are over 20,000 square feet.

These are just preliminary thoughts on zoning. A detailed analysis and recommendation would be provided to the Board should we move forward with creation of a new liquor classification.

Staff believes based upon past inquiries from businesses interested in opening this type of business that Arlington Heights, along with current interest from a potential business, that we are considered a desirable place to locate. We also believe the community would be receptive to adding breweries as an additional entertainment option.  In fact, in March 2016, a survey was offered to residents and businesses to obtain feedback on what type of liquor classifications they would like the Village to consider adding. Out of the 361 responses received, 300 people said that they would like the Village to consider adding a new microbrewery classification.

Recommendation

Therefore, it is recommended that the Village Board direct Staff to create new brewery liquor classifications that include proposed conditions and regulations for Board consideration at a future meeting in accordance with the suggestions outlined above.