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BPB CC Minutes February 16 2016 pkBeverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 CITY OF BEVERLY PUBLIC MEETING MINUTES Planning Board: Joint Public Hearing of the Planning Board and the Beverly City Council Date: Monday, February 16, 2016 Location: Beverly City Hall, City Council Chambers Members Present John Thomson, Ellen Hutchinson, Ellen Flannery, David Mack, Michael Rotondo Members Absent C. Barrett, N. Barrett, Wayne Miller, James Matz Councilors Present: Council President Paul Guanci, Vice President James Latter, David Lang, Don Martin, Scott Houseman, Jason Silva, Estelle Rand, Mathew St. Hillaire, John Frates Members Absent: None Others Present: City Planner Aaron Clausen, Darlene Wynne Recorder: Eileen Sacco Guanci calls the Public Hearing to order at 7:30 p.m. and invites Planning Board Chairman John Thomson to join him at the podium. Thomson joins the Council on the Council podium. Recess for Public Hearings Latter moves to recess for public hearings at this time. Silva seconds the motion. The motion carried (9 -0). Thomson asks for a motion from the Planning Board to recess for Public Hearings at this time. Flannery moves to recess for public hearings at this time. Hutchinson seconds the motion. The motion carries (5 -0). City Clerk Wesley Slate reads Council Order #014: ORDERED: Public Hearing: City Council Order #014 — Ordered that the Beverly City Council and the Beverly Planning Board hold a Joint Public Hearing on Tuesday, February 16, 2016 in the City Council Chamber, City Hall, 3 d floor, 191 Cabot Street, Beverly, MA relative to a proposed Amendment to various sections to Zoning Ordinance Chapter XXXVIII Section by establishing new land use categories that support arts and creative economic sectors, including Artist Live /Work space, Brewery, Distillery, Winery, and Maker Space. A new section 3 8-3 5 is proposed creating land use and permitting procedures for Artist Live /Work facilities. Page 1 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 Guanci recognizes City Planner Aaron Clausen to make a presentation on the proposed amendment to the Beverly Zoning Ordinance. Clausen addresses the City Council and Planning Board and states that he is pleased to submit the package of proposed zoning amendments that seek to grow the arts, cultural and innovation economy in Beverly. He explains that they are consistent with a number of development objectives outlined in the existing planning and policy documents from the Beverly Master Plan done in 2002 and the more recently completed Beverly Arts District in 2014. Clausen explains that the proposed amendments are responsive to a changing dynamic driven by the current economic recovery in that innovation is not only critical to new business growth but is happening more frequently in areas where creative businesses and skilled professionals are able to interact in close proximity. Innovation thrives in an environment where individuals are easily able to collaborate among their peers, across business sectors, and benefit from institutional and educational resources. He notes that an offshoot of this dynamic and a highly emerging component of the innovation economy are shared work spaces where individuals are able to create, learn and collaborate within the same facility. Clausen explains that the proposed amendments will create the following new land use categories: • Artist Live /Work: The proposed amendment includes a definition for Artist Live/Work spaces not currently allowed in the Beverly zoning ordinance, identifies zoning districts for which Artist Live /Work spaces will be allowed, and introduce a new section 3 8-3 5 establishing performance standards to be applied to them; • Brewery/Distillery, Winery: The proposed amendment establishes a clear definition for production and bottling facilities for beverages containing alcohol and defines tasting rooms as an accessory to a production facility. The proposed amendment also expands the commercial zoning districts for which they may be allowed; • Maker Space: creates a new use definition that allow facilities that provide shared work spaces that focus on the creation, design, or production of new products and /or services in certain commercial zoning districts. Clausen introduces Assistant City Planner Darlene Wynne to make a presentation on the proposed amendments to the ordinance. Wynne addresses the City Council and Planning Board and explains the reasons for the proposed ordinance amendment as follows: • Supporting the City's artisan and creative businesses • Supporting small business and entrepreneurship • Supporting innovation and the creation of new products • Addressing the rise in modern manufacturing • Makers • Retail and Production • Product Design and Prototyping Page 2 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 • "Craft" and "Micro' Brewing Wynne explains the amendment process that the Planning Department used to draft this ordinance as follows: 1. Identify the issue 2. Research other ordinances and models 3. Draft proposed language 4. Solicit feedback 5. Hold Joint Public Hearing with Beverly City Council and Beverly Planning Board 6. Recommend action Wynne explains that the Artist Live /Work spaces creates a new Section 38 -35 of the Zoning Ordinance for a new use which currently does not exist in the ordinance. She also notes that it establishes development, performance and parking standards exclusively for artists and the creative sector. Wynne explains that the Artist Live /Work space as follows: Artist Live /Work — The use of all, or a portion of, a building for an Art Use (a defined term), or creative work, and habitation by artists where units include both working space and residential dwelling space. Artist Live /Work unit is distinguished from a home occupation, in that • The work use is not required to be incidental to the dwelling unit; • More than one non - resident employee may be present on the premises; and • Customer may be served on the site The work use may include the sale, display, commission, consignment, or trade by artists or artisans, or classes. Wynne also explains that development standards address character and function subject to the inclusionary housing ordinance and maintaining artist use. She also notes that performance standards address potential impacts for noise, odor, smoke and dust. Parking and special permit criteria are addressed as well. Wynne explains where the Artist Live /Work would be permitted noting that they would be allowed by right in the CC zoning district and by Special Permit in the CN, IG, BHD, WDR, RHD, RMD zoning districts. Wynne explains the Brewery, Distillery and Winery provisions for the ordinance as follows: • Establishes a unique definition for alcohol production • Geared towards smaller capacity production • Adds accessory uses such as Tasting Room and associated retail • Expands districts in which this type of use can locate Page 3 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 • Provides a new parking standard Wynne explains that the Brewery, Distillery, Winery language calls for the use to be primarily engaged in the onsite manufacturing, blending, fermentation, processing, and packaging of alcoholic beverages, for wholesale, retail distribution, as allowed by state law. She notes that it may include accessory uses such as a tasting room or tap room for onsite consumption, retail sales and hosting marketing events, special events, and /or factory tours. Wynne notes that three such uses recently opened up in Salem and Beverly's first licensed brewery is Old Planters Brewing Company. She also notes that Gentile Brewing Company is opening a brewery and taproom in Beverly as well. Wynne reviews the Brewery, Distillery and Winery districts and explains that they will be allowed by right in the CC, IR and IG zoning districts and by Special Permit in the CN, CG, BHD, and WDR zoning districts. Wynne reviews the proposal for Maker Space in the ordinance. She notes that this will: • Creates an entirely new definition for this use • Allows shared work spaces for the creation, design, or production or services • Geared towards entrepreneurship and low intensity production • Slightly reduced parking standard Wynne explains that the definition of Maker Space is uses that process, fabricate, assemble, treat or package finished parts or products without the production or use in large quantities of hazardous or explosive materials. She also reports that due to the nature of operations and products, little or no noise, offensive odors, undue vibration or glare, and /or environmental pollution is produced; and, therefore, there is minimal impact on surrounding properties. Wynne explains that Maker Space is: • Small scale • Average 20 of fewer employees • National and International market • Locally sourced • Higher wages • Use of internet to develop and sell products • Self- employed are leading employment growth, nationwide Wynne also explains that Maker Space contributes to a strong economy and provides affordable production space needed to keep producers local. She also notes that they tend to use other local services and collaboration and further notes that access to shared space and equipment is key for innovation. Page 4 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 Wynne explains the proposed Maker Space districts noting that Maker Space would be allowed by right in the IR and IG zoning districts and in the CC district by a Special Permit from the Planning Board and in the CG district by Special Permit from the Zoning Planning Board of Appeal. Wynne concluded the presentation and asks if there are any questions at this time. Clausen notes that Darlene and other staff did a fair amount of research on this proposal to understand space needs of those interested in opening maker spaces in small manufacturing facilities. He notes that if you look at a lot of the top 20 or top 10 attributes to an innovative or creative community for a large city or a small city, one of the things you see is the concept of craft brewing and what is going on in an artisanal production. Councilor Latter stated that there are some great concepts and great ideas here and questions if there are safeguards to prevent someone from housing more people than allowed and regulations that would prevent the potential establishment of sweatshops. Clausen explains that it would be dictated by the zoning code and the building code and notes that there are definitions that guide the use. He further notes that the regulations would dictate how many people can be put into a single unit and notes that you are not going see an individual or family who is operating an established business out of the home and explains the types of businesses and situations that would be allowed. Councilor Latter asked if we are defining the work as artisan and how is that defined. Clausen explains that there are two new definitions for artist's live /workspace and art use in the proposed ordinance and reviews the definitions as follows: Artist Live /Work Space - the use of all, or portion of, a building for an art use, a creative work, and habitation by artists whereas units include both working space and residential dwelling space. Artist live /work space is distinguished from the home occupation, otherwise defined by this ordinance, and that the work use is not required to be incidental to the dwelling unit; more than one nonresident employee may be present on the premises; and customers may be served on -site. Tthe work use may include the sale, display, commission, consignment, or trade by artists or artisans; or classes held for art instruction. Art Use - the production of art or creative work within the fields of fine and applied arts including but not limited to painting, drawing, sculpture, graphic arts, photography, printmaking mixed - media, writing, publishing, poetry, photography, theater, film or video production, architecture, interior design, recording studio, culinary arts; and performing arts including but not limited to musicians, music composition acting, or dancing. Councilor Guanci clarified that live /work space is not included in the brewery section or the maker space section of the ordinance. Clausen stated that those uses do not provide living space. Councilor Rand stated that this is exciting work and she appreciates that this has been proposed rather quickly. She questioned how this zoning will incentivize new development and encourage Page 5 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 developers to build this type of space. She also stated that a constituent asked her if there are any examples of these types of uses that would encourage landlords to increase the rent that they charge, noting the possible situation where a landlord could try to get more rent for the living space and the work space. Clausen explains that the zoning will allow some live /workspace because it will be allowed by zoning and notes that that would be the first incentive to make it legal. He explained that there is a series of performance standards written into the ordinance that protects the artist in the neighborhoods. He notes that the Masonic Hall which is going to be redeveloped for residential use, could, under this ordinance have been developed into Artist Live/Workspace had we had the ordinance in place at the time. He also stated that this will be an opportunity for some of our traditional partners in the community to promote this type of use. He noted that as far as the concern about raising rents, there have been cases in other communities where artist's live workspace gentrified as a neighborhood and notes a neighborhood in Lowell that eventually was out priced due to lack of restrictions on the properties. He stated there would be an oversight mechanism in the Planning Department for any kind of change of use of the facility or property that would trigger a review and permitting process. Councilor Rand stated there are places in the city where this is already happening and people are creating their own live workspaces and questions what would happen to those kinds of spaces. Clausen states that some thought has to be given to that because some of those spaces may be home -based businesses that are not operating as a retail business or have other employees working for them that is a home -based business and they would be able to continue to do that as they are now. He notes that if someone has a studio in the home and is having showings and openings and allowing people into their homes that is something that should be permitted. He stated that if it was brought to their attention by someone who was living next door they would issue a cease - and - desist and this process would be a way for that work to continue to take place. Councilor St. Hillaire asked about the Brewer use noting the provision for a tasting room and a retail component and asked if there would be an opportunity for a restaurant or bar to open there as well. Clausen explains that there are regulations and limitations in the regulations and the license requirements that prevents brewers from selling or pouring any other beverages that are not produced there. He explains that these would be brewery facilities that would allow people to have tastings with a retail component to sell their product but there is no opportunity to expand into a bar that would serve food or other beverages. St. Hillaire asked if this would require a liquor license. Clausen explains that it would require liquor license and explains the type of license it would require. Councilor Lang asked if the City has talked with other bar owners to see if they are in favor for this type of thing. Clausen states that they talked with other brewers but not bar owners or restaurant owners. He stated that the brewery owners they talked with indicated that they would eventually like to sell their product to local bars and restaurants. Councilor Lang asked if they have thought about how a bar tasting room would fit into some of the neighborhoods and how the neighbors would react. Clausen explains that when they Page 6 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 considered areas to allow this zoning they looked for them be consistent with the character of the neighborhood to minimize impact, noting they will be a small scale brewery not on the scale of a restaurant or bar. Councilor Lang stated that he likes the whole proposal and he thinks it will be a good fit in some areas in the city but we have to be careful where we apply it. Councilor Silva stated that he loves what's happening downtown and states that he loves the direction that it is going in now noting Rantoul Street and that things are moving in a very positive direction. He said he loves the idea of building more residential units on Rantoul Street with the retail components on the first floor. He stated the traditional mixed -use is great but this encouragement of the arts which is center to the Beverly Arts District is a real progressive way to approach growth and he supports this effort. Mr. Thomson asked members of the Planning Board if they have any questions at this time. Hutchinson states that the development standards talk about the definition of maker space and doesn't really capture the idea of shared space. Clausen states that with the definition they are trying to focus more on the activities that are taking place there rather than the dynamics that happen within the maker spaces. He stated they didn't want to get into too many specific details in the definitions noting that they didn't want to limit things too much. He noted shared equipment opportunities among entrepreneurs as an example of things that need to be allowed and further notes that they didn't want to dictate the structure of the space other than to indicate that it is for production and small -scale fabrication. Hutchinson stated that this development standard talks about residential and commercial zones and questions if it would exclude the Beverly Harbor district. Clausen explains that what that is really getting at is that within that unit the residential living space in the commercial space where production happens is within a single unit and does not require that they are in a separate space such as an upstairs downstairs situation. He notes that the maker space and the living space are co- mingled within a single unit. Councilor Latter notes that the parking requirements for the brewhouse require one spot per 1000 s.f. for 30 customers. Clausen explains the intent of the parking requirements and notes they are based on a retail standard not a restaurant standard. Rotondo states that a "tap room" should be considered a bar. Clausen stated they're proposing a small scale manufacturing facility with a retail tasting component and if they serve anything other than what they produce they would be moving into the area of a definition of a restaurant. Guanci asked what the health requirements would be on this. Clausen stated that they would be the typical Board of Health requirements for these kinds of establishments and they would have to go through that approval process to get a license. Page 7 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 Mr. Thomson stated that he feels the need to be really specific as to the parking requirements and what is met by accessory. Thomson requested a review who the special permit granting authorities are for which situation so that it is clear to everyone what that process will be. Wynne reviews the Special Permit granting authority for the uses as follows: Artist Live/Work Space is permitted by right in the CC District and by Special Permit as granted by the Planning Board in the IG, BHD, WDR, RHD, and RMD Districts. She notes that the underlying regulations and standards pertaining to the districts apply unless they conflict with the standards or the ordinance, which shall take precedence. Brewery, Distillery, Winery is being proposed to be permitted by right in the CC District where the use is compatible with existing restaurant and retail uses. In the CC District the market and nature of the district would not be attractive to a large scale manufacturing facility. It would be reviewed as a Special Permit in other appropriate districts. The special permit granting authority is the Zoning Board of Appeal. Maker Space - will be permitted by right in the IR and IG Zoning District, and by Special Permit of the Planning Board in the CC district and by Special Permit of the Zoning Board of Appeal in the CG district. Council President Guanci asked for an example of where the CG zoning district is. Clausen reviews the zoning map and notes the CG districts throughout the city. Thomson states that if these are existing in other communities were they able to talk to anyof the planners about them. Wynne reported that she talked with Salem planners about the Breweries and noted that Clausen has some experience with Artist Live /Work spaces from his time in Lowell. Clausen explains some of his experience and knowledge of what other communities are doing with this noting Somerville and Lowell. He explains that in Lowell they discovered they had to make sure that the uses would be allowed to continue noting they wanted to be sure there were controls for development of the properties. He stated they worked more with Mass Development on figuring out the parameters of the configuring these kinds of spaces but noted that maker spaces are happening for the most part in industrial areas and that we would allow them on a small scale in the CC and in the IG district and make sure it is fitting in the context. He also noted that they want to make sure that they are interacting with the streets in the downtown of the commercial district. Councilor Guanci opens the meeting of public comment at this time. Rick Marciano 141 McKay Street questioned if the tax rate would remain the same for these new uses. Clausen stated that the maker space would be taxed as such noting they haven't gotten into specifics with the Assessor's Office yet. He clarified that the live/ work and the maker space are not the same thing. Page 8 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 Marciano asked what the minimum size the makerspace would be. Clausen stated that they are talking about something that is close to the 5,000 or 10,000 s. f. and notes that there would not be anything less than 1,000 or 2000 s.f because there has to be an area for people to share, noting equipment for the business side of the proposal. He notes the spaces would not be 500 or 600 s.f. Marciano stated that he would like to see the makerspaces protected as to what can take place noting the bowling alley site and what could possibly go in that space if it is torn down and the zoning is changed to CC. He stated that with regard to the brewery people could visit other establishments in the city to pick up a sub or a pizza and bring it to the brewery. Dr. Steve Immerman, President of Montserrat College of Art addresses the Planning Board and the City Council and stated that these zoning changes put us in a much more competitive position as it relates to other cities and towns that are currently investing in creative enterprises. He noted that they have five alumni operating businesses in downtown Beverly noting these are artistic endeavors and it is great that we are able to offer these opportunities for these artists to live and work in downtown Beverly. He notes that the shared maker space is a trend that there is a lot of interest in and desire for innovation and he applauds the Administration and the Planning Department for their progressive view and proposing these changes to the zoning ordinance. Gin Wallace, Executive Director of Beverly Main Streets, addresses the Planning Board and City Council and states that the City Council designated them as the managing entity of the Beverly Arts District. She notes that Aaron Clausen came to a couple of their meetings and presented the proposed amendments. She stated that she applauds the Administration for this change and she agrees with Counselor Rand that this is happening in a timely manner. There being no further questions or comments regarding this matter, Council President Guanci called for a motion to close the public hearing. Councilor Latter moved to close the City Council Public Hearing at this time. Councilor Silva seconded the motion. The motion carries (9 -0). Thomson asks for a motion to close the Planning Board Public Hearing at this time. Hutchinson moved to close the public hearing. Flannery seconds the motion. The Chair votes in favor. The motion carries (5 -0). Thomson notes that the Planning Board will convene next -door in the conference room. The Joint Public Hearing was adjourned at 9:15 p.m. Thomson calls the Planning Board meeting to order at 9:20 p.m. Page 9 of 10 Beverly Planning Board /Beverly City Council Joint Public Hearing Minutes February 16, 2016 Thomson recommends that the Board continue the discussion of the proposed zoning amendment to the next meeting of the Board. He notes that there are a few members absent this evening and he would like to give them an opportunity to weigh in on this. Flannery: Motion to continue the discussion on the proposed amendments to the Beverly Zoning Ordinance Establishing New Land Use Categories that Support Arts and Creative Economic Sectors. Hutchinson seconds the motion. The Chair votes in favor. The motion carries (5 -0). Adjournment There being no further business to come before the Planning Board this evening, Thomson called for a motion to adjourn. Hutchinson: Motion to adjourn the meeting. Flannery seconded the motion. The Chair votes in favor. The motion carries (5 -0). The meeting was adjourned at 9:30 p.m. Page 10 of 10