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Committee postpones proposal to allow distilleries as a principal use in downtown B2 zone
Summary
A proposed zoning text amendment to allow distilleries by right in the Downtown B2 zone was postponed so staff can study appropriate limits and stakeholder concerns; the proposal would mirror some B1 limits but make distilleries a permitted principal use with a 10,000-gallon annual cap in the draft text.
The Lexington Zoning and Subcommittee postponed consideration of TLN ZOTA 25-6, a proposed text amendment to add distilleries as a principal permitted use in the Downtown B2 zoning district.
Staff described the draft text as modeled on existing B1 conditional-use standards but proposed as a permitted use in B2 with specific limits, including a 10,000-gallon annual production cap, mandatory indoor distilling and a retail/tasting-room component. Staff noted that Kentucky law (KRS) defines categories of distilleries, and that other zones currently allow distilling at different caps: light and heavy industrial zones permit craft distilleries under KRS (up to 50,000 gallons, as defined), agricultural zones have a 1,000-gallon allowance as a conditional use, and several commercial zones treat distilleries as conditional uses.
Planning staff recommended postponement to allow additional research and stakeholder conversations to determine which restrictions are appropriate for the B2 downtown environment and to avoid allowing industrial-scale operations in central downtown. ‘‘We’re trying to determine where to sort of draw that line and find an appropriate balance that allows the distiller to operate without creating a nuisance or a hazard to other users in the B2 zone,’’ the staff member said.
Scott Shooting, speaking for the applicant New Era, said the company’s preferred approach was a countywide ZOTA rather than a downzoning to B1, and that size limits by square footage (for example 5,000 or 10,000 square feet) could be self-limiting in downtown. A public commenter who identified as Nick Nicholson said an adaptive reuse distillery project in Louisville transformed vacant historic buildings into a tourism anchor, drawing restaurants and retail and generating downtown economic activity.
After brief discussion the subcommittee member moved to postpone TLN ZOTA 25-6; the motion was seconded and the committee voted in favor. The item was recorded as postponed so staff can refine recommended restrictions and report back to the committee.
