Planning Commission approves zoning change to allow small distilleries downtown with limits

LEXINGTON, Ky. — The Lexington-Fayette Urban County Planning Commission on Wednesday approved a zoning text amendment to allow micro distilleries in the downtown B-2 business zone, adopting staff’s alternative text that sets a 10,000-gallon annual production cap by right and preserves a conditional-use pathway for larger micro distilleries up to the 50,000-gallon definition the city adopted in June.

The vote followed a staff presentation, remarks from applicant representatives and several members of the public who said downtown distilleries can support tourism. Commissioners moved the measure after a brief discussion and approved it unanimously.

Jeremy Young, planning staff, told the commission the proposed ZOTA 25.6 would add micro distilleries to Article 8.17 (the downtown business zone) and described the staff recommendation as a compromise: allow 10,000 gallons as a permitted principal use in the B-2 zone, but provide a conditional-use route for operations seeking production between 10,001 and 50,000 gallons. Young said staff’s alternative text was chosen after reviewing other cities’ ordinances and consulting industry advocates to balance downtown compatibility and business growth.

John Woodall, counsel for applicant New Era Whiskey and Spirits, said the applicant originally requested a 10,000-gallon allowance. Woodall noted…