5 5

5b

Karen Howard Associate Planner 410 E IA 52240

Prepared by Washington St Iowa City

ORDINANCE NO

AN ORDINANCE AMENDING TITLE 14 ZONING ESTABLISHING DEFINITIONS AND A

USE CLASSIFICATION PROCEDURE FOR DRINKING ESTABLISHMENTS AND ALCOHOL
ORIENTED
SALES RETAIL USES AND ESTABLISHING MINIMUM SPACING

REQUIREMENTS FOR DRINKING ESTABLISHMENTS THROUGHOUT THE CITY AND FOR

SALES ORIENTED RETAIL USES IN THE CENTRAL BUSINESS SERVICE CB
ALCOHOL
5AND CENTRAL BUSINESS CB
2 CENTRAL BUSINESS SUPPORT CB 10 ZONES

WHEREAS studies show that the increase in the concentration of alcohol

related uses is

correlated to the overconsumption of alcohol and prevalence of underage drinking and

WHEREAS studies also show that an increase in the concentration of alcohol

related uses

contributes to an increase in violence and crime and

WHEREAS due to the negative externalities associated with a concentration of drinking

establishments such as bars and pubs it is in the
public interest to prevent further
concentration of these types of uses throughout the community and
WHEREAS the Central Business District is intended to be the high density pedestrian
oriented shopping office service and entertainment area in Iowa City and provide opportunities
for a wide range of retail service office and residential uses and

WHEREAS in addition to the increased density of drinking establishments in the Central

Business District the increased density of alcohol
related retail uses such as liquor stores has

reduced the diversity of businesses in this downtown district and

WHEREAS due to the negative externalities associated with a concentration of alcohol

related retail establishments in the central business zones that sell alcoholic beverages for off
site consumption it is in the public interest to prevent further concentration of these types of
uses

NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA

CITY IOWA
SECTION I The Code of Ordinances of the City of Iowa City Iowa is hereby amended as

follows

A Amending Table 2A 1 Principal Uses Allowed in Single Family Residential Zones by

adding the Private Group Assembly Uses Any establishment
following note to Religious
that is licensed by the State to sell alcohol or alcoholic beverages is subject to the Use
Classification process as set forth in 14
2G
4A

B Amending Table 26 1 Principal Uses Allowed in MultiFamily Residential Zones by

adding Alcohol Oriented as a subgroup
Sales to the Retail Use category and adding the
Private Group Assembly Uses Any establishment that is
following note to Religious
licensed by the State to sell alcohol or alcoholic beverages is subject to the Use
Classification process as set forth in 14
2G
4A

C Amending Table 2C1 Principal Uses Allowed in Commercial Zones by

Splitting the Eating and Drinking Establishments use category into two subgroups
Eating Establishments and Drinking Establishments and
Indicating that Eating Establishments are a permitted use in the CH1 CC2 CB 2
5
CB and 10
CB Zones and special exception
provisional uses in the 1
CN Zone and

Special Exceptions in the 1

CO and MU Zones and
Ordinance No

Page 2

Indicating that Drinking Establishments are provisional uses in the CH

1 CC 2 CB 2
in the 1
CN Zone and
5
CB and 10Zones
CB and special exception
provisional uses

Adding a new subgroup Alcohol SalesOriented Retail to the Retail use category and
Oriented Retail uses are provisional uses in the CN
indicating that Alcohol Sales 1
1 CI
CH 1 CB 2 CB 5 CB 10 and MU Zones and a
permitted use in the 2
CC Zone
and

Adding the following note to Commercial Recreational Uses Eating and Drinking
Establishments Quick Vehicle Servicing Uses Retail Uses and Religious
Private
Group Assembly Uses Any establishment that is licensed by the State to sell alcohol
or alcoholic beverages is subject to the Use Classification process as set forth in 14
2G
4A
D Amending Table 2D 1 Principal Uses Allowed in Industrial and Research Zones by
Oriented
Sales as a Subgroup to the Retail Use Category and by adding
adding Alcohol
the following note to Commercial Recreational Uses Any establishment that is licensed by
the State to sell alcohol or alcoholic beverages is subject to the Use Classification process

as set forth in 14
2G
4A
E Amending Section 14
2
4A Classifying Uses by adding a new subsection G as follows

G Use classification for establishments that sell alcohol

1 Applicability Any use for which application has been filed for a liquor control
an

license or wine or beer permit subject to the following use classification process
is

2 Definitions The following definitions shall apply to terms used in this subsection

a Alcohol Sales the sale of alcohol and alcoholic beverages including but not
limited to alcohol beer or wine in closed containers intended for offsite

consumption and alcoholic beverages including cocktails shots wine beer

and any an alcoholic beverage intended for on
part of site consumption as
defined in Chapter 123 of the State Code
b Licensee Any person or entity that holds a liquor control license wine or
beer permit issued by the State of Iowa

c License Any liquor control license wine or beer permit issued by the State
of Iowa that allows sales of alcohol or alcoholic beverages

3 Classification Process
a Prior to issuance of a License for a new use or renewal of a License for a use

but which
that was established prior tothe effective date of this ordinance
has not yet been classified according to these provisions the Licensee must
submit to the Department of Housing and Inspection Services a verified

principal use for which the License

statement that details the nature of the
will be issued the
type s applied for and the hours that the
license of

establishment will be open for business The City may request any other
information deemed necessary to verify and classify the use including but
not limited to business records upon which the statement is based state and
federal tax records applications for dram shop insurance and audits
performed to determine dram shop insurance premiums and receipts from
vendors for goods purchased
b Based on provided by the applicant the type of License being
the information
applied for and the classification system set forth in this Article the City will
advise the applicant regarding the classification of the proposed use for
zoning purposes and if applicable whether the alcohol sales will be
Ordinance No

Page 3

considered a principal or accessory use ofthe property

c Ifthrough this use classification process a use that was legally established

prior to the effective date of this ordinance is determined to be

nonconforming with regardseparation requirements for Drinking

to the
Oriented Retail Uses the property file will
Establishments or Alcohol Sales
be tagged by the Building Official or designee as a nonconforming Drinking
Establishment or nonconforming Alcohol SalesOriented Retail Use as

applicable Such a nonconforming use may continue provided it is in

compliance with the applicable provisions of 14 4E Nonconforming
Situations
4 Accessory Alcohol Sales Certification

Any use that is classified Alcohol Sales

as an Oriented Retail Use is considered a

principal use and

subject to the
regulations pertaining thereto unless it is
determined that alcohol sales are an accessory use to another principal use of the
property through the following certification process Any Licensee applying for an
Accessory Alcohol Sales Certificate must submit verified statements and business

records as set forth in the

following subparagraphs
a For existing according to a verified statement issued by a certified
uses if
public accountant alcohol sales expressed as a percentage of gross yearly
income is less than 25 percent 25 an Accessory Alcohol Sales Certificate
will be issued for one year after which time it must be renewed annually at
the time the License is renewed Said statement shall be based on records
s business The Licensee shall
made in the regular course of the Licensee
allow upon request the Building Official City Clerk or designee to examine

the business records upon which the statement is based including state and
federal tax records applications for dram shop insurance and audits
performed to determine dram shop insurance premiums and receipts from
vendors for goods purchased
b For new uses if the Licensee estimates based on their submitted business

plan that alcohol sales expressed as a percentage of gross yearly income

will be less than 25 percent 25 an
Accessory Alcohol Sales Certificate
will be issued for year The certificate must be renewed annually
one

thereafter at the time the License is renewed based on actual sales

according to a verified statement from a certified public accountant as

described in subparagraph 4a above

c If certificate alcohol sales constitute 25 percent

at the time of renewal of the

25 of
or moregross yearly income and the use is not in compliance with
Oriented Uses a notice of violation
zoning requirements for Alcohol Sales
will be issued If the use is in violation of the zoning requirements for Alcohol

Oriented Uses the Licensee must reduce alcohol sales to below 25

Sales
of gross yearly income or otherwise bring the use into compliance with the
applicable regulations
F By amending subsection 14 4E Eating and Drinking Establishments by deleting
4A
paragraphs 1 and 2 and substituting in lieu thereof the paragraphs 1 and 2 below and
adding the exception stated below to paragraph 4 as follows
1 Characteristics

and
Establishments where the principal activity is the preparation dispensing
consumption of food and
or beverages Depending on the type of establishment food
Ordinance No
4
Page

and beverages may be consumed on or off of the premises These uses may vary
or
with regard to traffic generation congestion and the potential for off
site impacts
Therefore the size location and accessory uses permitted may be regulated
differently based on the underlying zoning
2 Examples Examples include uses from the two subgroups listed below
a Eating Establishments Restaurants cafes cafeterias coffee shops
delicatessens tearooms clubs fast food restaurants ice
dining rooms supper
cream parlors
b Drinking Establishments Any use that meets all of the defining characteristics
listed insubparagraphs 1 2 and 3 below is considered a Drinking
sub
Establishment for purposes of this Title unless listed as an exception in

paragraph 4 below
1 The principal activity of the establishment is the preparation dispensing
or beverages and
and consumption of food and

2 The establishment is licensed by the State for the sale of alcoholic

site consumption as defined by Iowa Code Chapter 123
beverages for on
and

3 The establishment is open for business on a regular basis any time

between the hours of 12
00 AM and 200 AM
4 Exceptions
b Restaurants and
or bars that are Oriented Retail Use
associated with aHospitality
and that have been issued a Class B liquor control license are considered
Oriented Retail Use and are not considered
accessory to the subject Hospitality
Oriented Retail Uses
Eating or Drinking Establishments orAlcohol
G Amending 14 4H Retail Uses by adding the following example to paragraph 2 by
4A
deleting paragraph 3 in its entirety and substituting in lieu thereof the paragraph 3
below deleting paragraph 4e in its entirety and substituting in lieu thereof the paragraph
4e below and adding paragraphs 4f and 4g and renumbering the subsequent

paragraphs accordingly as follows

2 Examples Examples include uses from the subgroups listed below

Oriented liquor stores wine shops grocery stores convenience

f Alcohol Sales
stores and other retail establishments for which a Class E liquor control license or
wine or beer permit has been issued that allows sale of alcohol or alcoholic

premise consumption
beverages in closed containers for off
3 Accessory Uses

Offices storage of goods assembly repackaging or processing of goods for on

site

street parking services incidental

sale off to the sale of goods wholesale sales

through
Drive facilities are accessory uses that are subject to additional regulations
outlined in Article 4C Accessory
14 Uses and Buildings Crematoriums for either
human pet remains
or may be an accessory use to a funeral home or mortuary
4 Exceptions

e Restaurants and
or bars that are associated with Oriented
aHospitality Retail Use
and that have been issued a Class B
liquor control license are considered
are not
accessory to the Oriented Retail Use
subject Hospitality and considered

Drinking orAlcohol Retail Uses

Establishments Oriented
f Drinking Establishments are not considered Alcohol Sales
Oriented Uses even if

they have a liquor control license or wine or beer permit that allows sale of alcohol
Ordinance No

Page 5

wine or beer in closed containers for premise consumption

off
g A use is not considered an Alcohol Sales
Oriented Use if an Accessory Alcohol
Sales Certificate has been granted according to the process set forth in 14
2G
4A
Use classification for establishments that sell alcohol
H band substituting
Deleting subparagraph 14
4
4F
4A in lieu thereof the following
b A convenience store located on the same lot as a Quick Vehicle Servicing use is
Oriented Retail or Alcohol Sales
regulated as a separate principal use Sales Oriented

Retail whichever is applicable

I Amending paragraph 14 9to add the following subsections
46
d Drinking Establishments are not allowed in the MU and CO 1 Zones
e In the 1 Zone a Drinking Establishment as defined in this Title must be
CN
separated by a minimum distance of 500 feet from any other Drinking Establishment
Distance shall be measured along a straight line from the nearest property line or
nearest point of the leased building space of the proposed use to the nearest property
line or nearest point of the leased building space of any other Drinking Establishment

For example in the case of a Drinking Establishment that is located on a lot with
multiple leased spaces such as a shopping mall the distance is measured from the
nearest point of the leased building space occupied by a Drinking Establishment to the
nearest property line or leased building space of any other Drinking Establishment

J Amending paragraph 14 46by adding a new paragraph 10 as follows and

renumbering the remaining paragraphs accordingly

10 Drinking Establishments in the CH 1 CC 2 CB 2CB 5 CB 10Zones
A Drinking Establishment as defined in this Title must be separated by a minimum

distance of 500 feet from any other Drinking Establishment Distance shall be
measured along a straight line from the nearest property line or nearest point of the
leased building space of the proposed use to the nearest property line or nearest

point of the leased building space of any other Drinking Establishment For
example in the case of a Drinking Establishment that is located on a lot with multiple
leased building spaces such as a shopping mall the distance is measured from the
nearest point of the leased building space occupied by a Drinking Establishment to

the nearest property line or leased building space of any other Drinking
Establishment

K Deleting the titles for paragraphs 14

13
46
4B and 4B
14 and substituting in
lieu thereof
13 Oriented
Sales Personal Service
Oriented and Alcohol Sales
Oriented Retail
Uses in the CN
1Zone

14 Oriented and Alcohol Sales

Oriented Personal Service
Sales Oriented Retail
Uses in the MU Zone
L 15 and substituting in lieu thereof
Deleting paragraph 14
46
15 Sales
Oriented and Alcohol Sales
Oriented Retail in the CH 1 Zone
Oriented and Alcohol Oriented
Sales Sales Retail Uses are limited to convenience
stores associated with Quick Vehicle Servicing Uses
M 17 and substituting in lieu thereof
Deleting paragraph 14
4B
17 Hospitality
Oriented Retail in the RM 44 PRM MU CO 1 and CN 1Zones

Oriented Retail is limited to guesthouses as defined in Article 14

a Hospitality 9A of
this Title General Definitions
b Any accessory dining or bar service is limited to
and guests only and may not be
Ordinance No
Page 6

open to the
general public
follows and renumbering the
N Amending 144B by adding two new paragraphs as

remaining paragraph accordingly

Oriented Retail in the CI
21 Alcohol Sales 1 Zone

Oriented Retail is limited to convenience stores associated with Quick

Alcohol Sales
Vehicle Servicing Uses
Oriented Retail Uses in the
22 Alcohol Sales 2 CB
CB 10 Zones
5 and CB
Sales Retail Use must be separated by a minimum distance of
An Alcohol Oriented
Oriented Retail Use Distance shall be
1000 feet from any other Alcohol Sales
measured along a straight line from the nearest property line or nearest point of the
leased building space of the proposed use to the nearest property line or nearest

pointof the leased building space of any other Alcohol Sales

Oriented Retail Use
Oriented Retail Use that is located on
For example in the case of an Alcohol Sales

a lot with multiple leased spaces such as a shopping mall the distance is measured

from the nearest point of the leased building space occupied by an Alcohol Sales
Oriented Retail Use to the nearest property line or leased building space of any
Oriented Retail Use
other Alcohol Sales
O In Section 14
5adding
4E a new subsection G as follows

G Nonconforming Drinking Oriented Retail

Establishments and Alcohol Sales
Uses

In addition to the other provisionsin this Section the following provisions apply to

nonconforming Drinking Establishments and nonconforming Alcohol Sales

Oriented
Retail Uses

1 Any Drinking Establishment as defined in this Title that was legally established
prior to effective date of this ordinance and that is nonconforming with regard to the
separation requirement between said uses as specified in this Title may continue
unless one or both of the following situations occur If one or both of these

conditions occur then nonconforming rights cease and the use must convert to a
conforming use
a The liquor license lapses is revoked or is discontinued for a period of one

year or

b There are changes to the use such that the use no longer meets the definition

of Drinking Establishment
2 Any Oriented Retail Use as defined in this Title that was legally
Alcohol Sales
established prior to the effective date of this ordinance that is nonconforming with
regard to the separation requirement between said uses as specified in this Title
both of
may continue unless one or both of the following situations occur If one or
these conditions occur then nonconforming rights cease and the use must convert

to a conforming use

a The liquor license lapses is revoked or is discontinued for a period of one

or
year
b There are changes to the use such that the use no
longer meets the definition

Oriented Retail Use

of Alcohol Sales

3 For purposes of this subsection sidewalk cafes shall not be considered an

expansion of a nonconforming use

P In Article 9A General Definitions adding the following definitions
14
Ordinance No
7
Page

Sales Retail Use See Retail Uses

Alcohol Oriented as defined in Article 14
4A
Land Use Classification
Drinking Establishments defined in
Drinking Establishment See Eating and as

4A Land Use Classification

Article 14
Q In ArticlegA General Definitions delete the definitions for Eating and Drinking
14
Establishment and Restaurant and substitute respectively in lieu thereof

Eating Establishment See Eating and Establishments as defined in Article

Drinking
4A Land Use Classification
14
An Establishment defined in Article 4A
14 Land Use
Restaurant Eating as

Classification
SECTION II REPEALER All ordinances and parts of ordinances in conflict with the provisions
of this Ordinance are hereby repealed
SECTION III SEVERABILITY provision or part of the Ordinance shall be
If any section

adjudged to be invalid or unconstitutional such adjudication shall not affect the validity of the
Ordinance as a whole or any section provision or part thereof not adjudged invalid or
unconstitutional
SECTION IV EFFECTIVE DATE This Ordinance shall be in effect after its final passage
approval and publication
Passed and approved this day of 20

MAYOR Approved by

ATTEST
CITY CLERK Attorney Office
City s L j
7
Ordinance No

Page

It was moved by and seconded by that the Ordinance

as read be adopted and upon roll call there were

AYES NAYS ABSENT

Bailey
Champion
Correia

Hayek
Donnell
O
Wilburn

Wright

First Consideration 2009

5
Vote for passage AYES Champion Correia Wilburn Wright Bailey NAYS Donnel
O
ABSENT None
Hayek
Second Consideration
Vote for passage

Date published