From
Chris Hartmann
Title
TA180501 - Text Amendment - Article 11 and Article 30. Amendment to the Unified Development Code, Article 11, "Performance Standards", and Article 30 "Definitions" to revise regulations restricting alcohol sales in restaurants. The applicant is the City of Grand Prairie. (On May 7, 2018, the Planning and Zoning Commission recommended approval of this request by a vote of 9-0).
Presenter
David Jones, AICP, Chief City Planner
Recommended Action
Approve
Analysis
SUMMARY:
TA180501 - Text Amendment - Amendment to the Unified Development Code, Article 11, "Performance Standards" to revise regulations restricting alcohol sales in restaurants.
OVERVIEW:
In an effort to streamline auditing procedures and align Grand Prairie more closely with our larger market, staff requests that Council approve changes to existing alcohol percentage limitations for restaurant/food service establishments. Key components of the proposed ordinance are outlined below:
- Remove requirement of maximum 30 percent alcohol sales for restaurants and adopt state maximum of 60 percent (Sec 69.16 TABC).
- Any restaurant serving alcohol must have a permanent commercial kitchen.
- Retain requirement that maximum 20% of floor area may be bar/holding area.
- City reserves right to require evidence of compliance or facilitate TABC audit.
The relevant state code is Section 69.16 of the Texas Alcoholic Beverage Code, which reads:
Sec. 69.16. FOOD AND BEVERAGE CERTIFICATE. (a) In this section, "location" means the designated physical address of the retail dealer's on-premise license and includes all areas at the address where the license holder may sell or deliver alcoholic beverages for immediate consumption regardless of whether some of those areas are occupied by other businesses.
(a-1) A holder of a retail dealer's on-premise license may be issued a food and beverage certificate by the commission if the commission finds that the receipts from the sale of alcoholic beverages by the license holder at the location are 60 percent or less of the total receipts from the location
State law further requires that the holder of a Food and Beverage Certificate must have permanent food service facilities for the preparation and service of food at the location. Adoption of this amendment would replace existing city regulations which limit the sale of alcohol to 30 percent or less of total receipts. Any restaurant which serves alcohol would be required to operate a commercial kitchen (as defined in Article 30 of the GP Unified Development Code) and must provide evidence at the City's request that no more than 60 percent of receipts are from alcohol, regardless of state licensure or auditing requirements.
RECOMMENDATION:
The Development Review Committee recommends approval.
At its April 16, 2018 meeting, the City Council Development Committee voted to recommend approval.
At its May 7, 2018 meeting, the Planning and Zoning Commission voted 9-0 to recommend approval.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING ARTICLE 11, “PERFORMANCE STANDARDS”, AND ARTICLE 30, “DEFINITIONS” OF THE UNIFIED DEVELOPMENT CODE, ESTABLISHED BY ORDINANCE NUMBER 4779, PASSED ON NOVEMBER 20, 1990; TO ADD REGULATIONS AND REQUIREMENTS TO ALLOW THE PRODUCTION, SALE AND ON-SITE CONSUMPTION OF ALCOHOL WITHIN BREWPUBS AND DISTILLERIES; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; CONTAINING A SAVINGS CLAUSE; AND TO BECOME EFFECTIVE UPON ITS PASSAGE AND APPROVAL.
WHEREAS, Section 1.11.3.1 of the Unified Development Code of the City of Grand Prairie, Texas states: “Amendments to the text of the Unified Development Code shall be initiated only by action of the City Council directing the City Manager to initiate such a request on be-half of the City or by the City Manager's own initiative.”; and
WHEREAS, on April 16, 2018, a review and briefing was held by City Manager staff before the City Council Development Committee of the City of Grand Prairie, Texas for consideration of a proposal to initiate said amendments; and
WHEREAS, after consideration of said amendments, the City Council Development Committee of the City of Grand Prairie, Texas directed City Manager staff to initiate the preparation of an ordinance amending the Unified Development Code for submittal to the Planning and Zoning Commission of Grand Prairie, Texas for consideration of a recommendation to the City Council; and
WHEREAS, Notice was given of a public hearing on said amendments to be held by the Planning and Zoning Commission of Grand Prairie, Texas, in the City Hall Plaza Building at 6:30 P.M. on May 7, 2018, such Notice of the time and place of such hearing having been given at least ten (10) days prior to such hearing by publication in the Fort Worth Star Telegram, Fort Worth, Texas, a newspaper of general circulation in such municipality; and
WHEREAS, after consideration of said amendments, the Planning and Zoning Commission of the City of Grand Prairie, Texas voted 9 to 0 to recommend to the City Council of Grand Prairie, Texas, that said amendments should be approved since its provisions are in the public interest and will promote the health, safety and welfare of the community; and
WHEREAS, Notice was given of a further public hearing to be held by the City Council of the City of Grand Prairie, Texas, in the City Hall Plaza Building, at 6:30 o'clock P.M. on May 15, 2018 to consider the advisability of amending the Code of Ordinances and the Unified Development Code as recommended by the Planning and Zoning Commission, such Notice of the time and place of such hearing having been given at least fifteen (15) days prior to such hearing by publication in the Fort Worth Star Telegram, Fort Worth, Texas, a newspaper of general circulation in such municipality.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1
THAT, Article 11 “Performance Standards”, and Article 30 “Definitions” of the Unified Development Code, City of Grand Prairie, Texas, be and are amended, with proposed additions of text being shown in underlined print, and deleted text being shown with a single line strikethrough, as follows:
Article 11: Performance Standards
SECTION 12 - REQUIREMENTS FOR ON-PREMISE SALE AND CONSUMPTION OF ALCOHOLIC BEVERAGES
11.12.1 Standards
Alcoholic beverages, as defined in the Alcoholic Beverage Code of the State of Texas, may be sold or for on‐premise consumption in restaurants facilities, certain facilities owned by the City of Grand Prairie or hotels, motels, theaters, and brewpubs only in accordance with the following standards. On‐premise consumption of alcoholic beverages shall be:
A. Allowed for full service and walk-up restaurants (as defined in Article 30 “Restaurant - Full Service”) with a gross floor area of 5,000 square feet or more; provided that at least ten percent (10%) of the total floor area shall be used as a the facility shall operate using a permanent commercial kitchen (as defined in Article 30), and that not more than twenty percent (20%) of the total floor area shall be used as a bar/holding area, and that at least seventy (70%) percent of gross restaurant revenues shall be from the sale of food prepared on‐premise and that receipts from the sale of alcoholic beverages by the operator at the location are 60 percent or less of the total receipts from the location (reference Article 4, Section 4.8.5 for proximity requirements).
B. Allowed for full service restaurants (as defined in Article 30 “Restaurant - Full Service”) with a gross floor area of less than 5,000 square feet, but exceeding 2,499 square feet; provided that at least ten percent (10%) of the total floor area shall be used as a kitchen, that not more than ten percent (10%) of the total floor area shall be used as a bar/holding area, and that at least seventy percent (70%) of gross restaurant revenues shall be from the sale of food prepared on‐premise (reference Article 4, Section 4.8.5 for proximity requirements).
1. A bar/holding area, and the sale of mixed alcoholic beverages, shall be prohibited for restaurants containing less than 2,500 square feet. At least seventy percent (70%) of gross restaurant revenues shall be from the sale of food prepared on‐premise (reference Article 4, Section 4.8.5 for proximity requirements).
C. Allowed for walk-up service only restaurants (as defined in Article 30 “Restaurant - Walk-Up Service Only”) with a gross floor area of 5,000 square feet or more; provided that at least ten percent (10%) of the total floor area shall be used as a kitchen, that not more than twenty percent (20%) of the total floor area shall be used as a bar/holding area, and that at least seventy percent (70%) of gross restaurant revenues shall be from the sale of food prepared on‐premise (reference Article 4, Section 4.8.5 for proximity requirements).
D. Allowed for walk-up service only restaurants (as defined in Article 30 “Restaurant - Walk-Up Service Only”) with a gross floor area of less than 5,000 square feet, but exceeding 2,499 square feet; provided that at least ten percent (10%) of the total floor area shall be used as a kitchen, that not more than ten percent (10%) of the total floor area shall be used as a bar/holding area, and that at least seventy percent (70%) of gross restaurant revenues shall be from the sale of food prepared on‐premise (reference Article 4, Section 4.8.5 for proximity requirements).
1. A bar/holding area, and the sale of mixed alcoholic beverages, shall be prohibited for restaurants containing less than 2,500 square feet. At least seventy percent (70%) of gross restaurant revenues shall be from the sale of food prepared on-premise (reference Article 4, Section 4.8.5 for proximity requirements).
K. Allowed as an incidental use in hotels, resort casino hotels and motels equipped with meeting and conference facilities and a full-service, on-site restaurant or walk-up, on-site restaurant (as defined in -Article 30 “Restaurant Full Service” <http://www.gptx.org/Modules/ShowDocument.aspx?documentid=540> and “Restaurant - Walk-up Service Only”), which meets the requirements of Article 11.12.1.A or B above. Delivery and/or service of alcoholic beverages by hotel, motel or restaurant employees to individual rooms or meeting areas or outdoor reception areas designated as such on the interior design plan required in Article 11.12.3.A below for on-premise consumption only shall be allowed. Delivery of alcoholic beverages to individual rooms or meeting areas by an off-premise provider is not allowed. For purposes of this Section, employees of a hotel, motel or restaurant shall include persons paid directly by the hotel, motel or restaurant, and persons paid directly by a company or firm under contract to hotel, motel or restaurant to provide food-catering services.
L. Alcoholic beverage service at no charge to guests of a hotel or motel with a minimum of 70 rooms shall be allowed as an incidental use in hotels and motels not equipped with a full-service, on-site restaurant (as defined in -Article 30 “Restaurant Full Service” <http://www.gptx.org/Modules/ShowDocument.aspx?documentid=540>) for no more than 4 hours in a 24-hour period in a designated common area such as a lobby or pool area. Delivery of alcoholic beverages to individual rooms or meeting areas by an off-premise provider is not allowed. Alcohol sales on the premise shall be prohibited.
M. Allowed as an incidental use in a Class 1 Horse Race Track facility, a performance hall, an exhibition hall or a convention center with a maximum design capacity of over 3,000 patrons when equipped with a full-service kitchen and restaurant. Sales of alcoholic beverages for on-premise consumption only may be conducted from the restaurant or from food and beverage concession areas designated as such on the interior design plan required in Article 11.12.3.A below. For the purpose of this Section, “Horse Race Track Facility” shall mean all the property and structures for which a license has been granted to operate a Class 1 horse race track by the Texas Racing Commission and for which an alcoholic beverage license has been issued by the State of Texas and the City of Grand Prairie pursuant to Chapter 3 of the Code of Ordinances. The sale of alcoholic beverages shall not be allowed in the non-public-access areas of the racetrack, as defined in the Texas Racing Commission Rules of Racing.
N. Allowed as an incidental use within a golf course (SIC codes 7992 and 7997) equipped with a club-house which includes a full-service, on-site restaurant meeting the requirements of Article 11.12.1.A or B above, except that the 70% food sales ratio described in Article 11.12.1.B above and the auditing requirements of Article 11.12.2, below shall not apply.
O. Allowed as an incidental use at the following City of Grand Prairie parks, recreation, entertainment and conference center facilities except that the 70% food sales ratio described in Article 11.12.1.B above and the auditing requirements of Article 11.12.2 below shall not apply:
1. The Uptown Theater complex, 120 E. Main Street
2. The Farmers Market in downtown Grand Prairie's Market Square, 120 W. Main Street
3. The Ruthie Jackson Center, 3113 S. Carrier Parkway.
4. Minor league baseball stadium, 1600 Lone Star Parkway.
5. Lynn Creek Park, 5700 Lakeridge Parkway. (All grounds and facilities)
6. Loyd Park, 3401 Ragland Road. (All grounds and facilities)
7. Mike Lewis Park, 2600 block of North Carrier Parkway. (All grounds and facilities)
8. Turner Park, 600 N. Belt Line Road. (All grounds and facilities)
9. Waggoner Park, 2122 N. Carrier Parkway. (All grounds and facilities)
10. The Summit at Central Park, 2975 Esplanade.
11. Central Park, 2955 Esplanade. (All grounds and facilities)
12. Former Fire Station No. 1, 317 and 321 W. Main Street.
P. Allowed as an incidental use within a theater, except there shall be no bar holding area allowed.
Q. Allowed by right at brewpubs or distilleries in the Downtown Study Area which meet the definition found in Article 30 “Brewpub”.
1. A Specific Use Permit is required for the operation of a brewpub or distillery having at least one of the following characteristics:
i. The physical size of all operations within a single building exceeds 20,000 square feet or the cumulative physical size of operations within multiple buildings exceeds 20,000 square feet, including brewery rooms, tasting rooms, commercial kitchens, and dining areas;
ii. The property or properties on which operations are proposed exceeds 1 total acre;
iii. Any uses, other than food service meeting the definition of a restaurant, are requested concurrently with the brewpub which share a demised space with the brewpub or whose business operates as an integral part with the brewpub, including live entertainment, event space, hotel, or retail space when the retail area exceeds 1,000 gross square feet;
iv. Thirty percent (30%) or more of alcohol sales come from alcoholic beverages, liquor, beer, wine, or spirits produced outside the Downtown Study Area;
v. The operator is required by TABC to obtain a mixed-beverage license and/or late hours permit, or for any operation associated with a brewpub with business hours which extend beyond midnight;
vi. More than 10,000 barrels of liquor, beer, or distilled spirits in any combination are produced annually at the location;
vii. Sales or consumption of liquor, beer, or distilled spirits occur within 300 feet of uses listed in Section 4.8.6.
2. If the proposed brewpub or distillery exhibits more than one of the above characteristics upon submission of the SUP application, only one SUP will be required for the approval and operation of multiple functions under i through vii above. If, after approval of the SUP, one or more of the functions or characteristics ceases, it will not automatically invalidate other functions approved under the SUP or the SUP itself; however, additional SUP approval may be necessary to reestablish a function or characteristic once it has ceased.
11.12.1 Auditing Requirements
Notwithstanding any of the above, the City of Grand Prairie reserves the right to help initiate, provide support to, cooperate with, or otherwise facilitate auditing activities carried out by the State of Texas pursuant to the Texas Alcoholic Beverage Code. The City further reserves the right to require, at any time, that a restaurant operator provide appropriate evidence demonstrating that alcohol sales regulated by this Article comply with all requirements of this Article which are not otherwise regulated or enforced by the State of Texas. Full service restaurants with a gross floor area of less than 5,000 square feet, but exceeding 2,499 square feet that serve alcoholic beverages and full service restaurants with 75% or more alcoholic beverage sales as a percentage of gross revenues shall be subject to the following auditing requirements:
A. No later than on the last day of the month following each quarter, the operator shall file an affidavit on an officially approved form with the City Secretary that reflects gross sales for the preceding three (3) month and twelve (12) month periods, or since the restaurant began operation, whichever is shorter, breaking down sales between food and alcoholic beverages or, if requested, sales between on-site service and take-out service.
B. The operator must also file, at the same time as the gross sales report, a copy of the filings supplied to the State of Texas for Sales Tax and Mixed Beverages Tax purposes. The operator shall be required to submit an annual audit of gross sales broken down between food and alcoholic beverage sales at the operator's expense. All filings shall remain confidential.
C. The operator shall permit the City Finance Director or designee to view the books, records and receipts relative to the sale of food and alcoholic beverages at any time after four (4) hour's notice. The City Manager, City Attorney or City Secretary may also examine said records. Said records may be introduced in court for the purpose of showing the operator is in violation of this Ordinance.
Article 30: Definitions
Kitchen (Commercial): Permanent on-site food service facilities for the preparation and service of multiple entrees for consumption by restaurant or food service establishment patrons. The part of a restaurant, eating place or food service establishment which A kitchen shall contains food preparation equipment*, food and utensil storage, utensil sanitation equipment (if the establishment provides reusable utensils)**, any other area so designated by the Director of Health as necessary to the preparation of individual meals that will be served to the public in individual portions which can be consumed for consumption on the premises at which the meals are prepared.
SECTION 2
Sections of Article 11 “Performance Standards”, and Article 30 “Definitions” of the Unified Development Code, City of Grand Prairie, Texas, not included in this amendment, shall remain in full force and effect, save and except for necessary modifications to the “Table of Contents” affecting page numbering, and for necessary modifications to related terminology or phrases that have been modified by this amendment that will affect a similar modification to interrelated terminology and phrases cross-referenced in other Articles in the Unified Development Code.
SECTION 3
THAT if any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such provisions and such holding shall not affect the validity of the remaining portions thereof.
SECTION 4
THAT all of the regulations provided in this ordinance are hereby declared to be governmental and for the health, safety and welfare of the general public. Any member of the City Council or any City official or employee charged with the enforcement of this ordinance, acting for the City of Grand Prairie, Texas, in the discharge of his duties, shall not thereby render himself personally liable; and he is hereby relieved of all personal liability for any damage that might occur to persons or property as a result of any act required or permitted in the discharge of his said duties.
SECTION 5
THAT any person, firm, association of persons, company, corporation, or their agents, servants, or employees violating or failing to comply with any of the provisions of this article shall be fined in an amount not to exceed two thousand dollars ($2,000.00), and each day any violation of noncompliance continues shall constitute a separate and distinct offense. The penalty provided herein shall be cumulative or other remedies provided by state law, and the power of injunction as provided in V.T.C.A. Local Government Code Section 54.016 and as may be amended, may be exercised in enforcing this article whether or not there has been a complaint filed.
SECTION 6
THAT this ordinance shall be in full force and effect from and after its passage, approval and publication.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, THIS THE 15th DAY OF MAY, 2018.
ORDINANCE NO. 10467-2018
CASE NO. TA180501