Cedar City Council narrows brewery/winery production rules and votes to bar new fuel‑island convenience stores in historic downtown

Cedar City Council · March 26, 2026

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Summary

Council amended downtown commercial zoning to allow breweries and wineries with defined production and retail minimums and approved an ordinance prohibiting convenience stores with fuel islands in the downtown commercial zone (200 N to 200 S); the council also adopted related table-of-uses changes after lengthy debate and public comment.

The Cedar City Council spent the bulk of its March 25 meeting debating changes to Ordinance 26-3-21 (permitted uses in the downtown commercial zone). Staff introduced a package of changes from the Historic Downtown Economic Committee that would: allow on-premises alcohol consumption, permit breweries and wineries with limited production areas, prohibit convenience stores with fuel islands in the historic downtown, and allow small electronic-equipment retail under a square-foot threshold.

Councilmembers focused on the brewery/winery proposal and on preserving downtown walkability while not unduly restricting economic opportunity. Early in the discussion staff and council suggested several framing options — a strict square-foot cap on production area, a percentage-based retail requirement, or a hybrid approach. Council spent significant time weighing whether the production-area cap should be 3,000 or 5,000 square feet and whether the businesses must include a minimum retail/service fronting the street.

Ultimately a council motion (as refined during discussion) established a two-tier approach in the table of uses: breweries/wineries with production areas up to 3,000 square feet would be permitted with a minimum of 500 square feet of nonproduction (retail/service) area; production areas of 3,001–5,000 square feet were permitted only with a minimum of 1,000 square feet of nonproduction (retail/service) area. Councilmembers framed the minimums as a way to protect storefront activity and downtown character while allowing production capacity behind storefronts.

On the separate question of convenience stores with fuel islands in the downtown commercial zone (roughly Main Street between 200 North and 200 South), councilmembers debated the tradeoffs. Supporters of the prohibition cited the Historic Downtown Commission’s recommendation and the council’s goal of a walkable Main Street; opponents raised concerns about property rights and the economic viability of existing small proprietors, including the possibility that existing owners might be unable to adapt without some flexibility. A member of the public, property owner Chirag Mehta, said he had been approached by a national petroleum company and expressed concern about the future of an older hotel on his property if redevelopment options were limited.

After public comment and debate a motion to amend Ordinance 26-3-21 to prohibit convenience stores with fuel islands in the downtown commercial zone was made, seconded, put to roll call and passed. The council recorded multiple 'Aye' votes and at least one 'Nay' during roll-call; the motion carried. Councilmembers said existing nonconforming stations could continue to operate but that the change would prevent new fuel‑island convenience stores from locating in the downtown zone.

Council also approved other presented table-of-use changes (excluding the convenience-store item which was handled separately) and instructed staff to draft the final ordinance language reflecting the council’s direction. The council moved on to other agenda items including an overnight-parking ordinance and a minor budget revision.

Next steps: staff will draft the amended ordinance language for formal adoption as required by ordinance procedures and clarify how the nonconforming status and parcel-linked grandfathering (if applied) will be administered.