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6. Deep Roots Winery staff report Staff Report Date of Meeting: February 5, 2020 To: City Council From: Brenda Eklund, Deputy Clerk Re: Deep Roots Winery Issue: Does the City need to amend its existing liquor ordinance to permit Deep Roots Winery to operate a tasting room and conduct sales of liquor products both manufactured on and off the premises? Background: The Commissioner of Public Safety has authority to issue a farm winery license to the operator of a farm winery located within the state and producing table, sparkling, or fortified wines. This state license authorizes the sale, on the farm winery premises, of the wines produced by that farm winery at on-sale or off-sale, in retail, or wholesale lots. Farm winery total production cannot exceed 75,000 gallons annually. If the winery wishes to include sales of alcohol products not produced on the premises, the owners must apply for a separate on-sale/off-sale combination liquor license with the City. Scandia’s ordinance allows the City to issue up to the number of on-sale liquor licenses allowed by state law. In cities of the fourth class, not more than seven licenses; currently there are three on-sale liquor establishments in Scandia (Brookside Pub, Meister’s, and the Scandia Creamery). Conclusion: No changes to the City’s existing liquor ordinance need to be made for the proposed winery to operate a tasting room or conduct sales of alcohol products manufactured on or off the premises. In the future, if the Council desires to permit brewpubs, taprooms, or micro distilleries, these kinds of liquor licenses would need to be added to the city’s liquor ordinance via amendments.