Surging popularity of microbreweries prompts Temecula council to regroup

Surging popularity in microbreweries and craft beer tasting rooms has prompted Temecula to enact a development moratorium while city staff studies and proposes new operating guidelines.

City planners convinced the council that gaps in the existing regulations governing microbreweries warrant a moratorium. However, planners are quick to note that the hiatus from processing development applications does not signal any concerns over the fast-growing industry.

“There’s a lot of talk about this issue,” Luke Watson, the city’s director of community development, said in a telephone interview after the recent council action. He said the city wants to send a message that it supports the microbreweries business model and it will make its recommendations “as soon as possible.”

The council approved a 45-day moratorium, but that hiatus could be extended if city planners require additional time. City staff lobbied for the immediate implementation of the moratorium, stating that there is an “urgent necessity” for a brief freeze in permit reviews.

Over the past decade, microbreweries have proliferated and rapidly expanded in key hubs across the county. San Diego established itself as an early node in the fast-growing industry as consumer demand for craft beers has mushroomed.

That trend has also taken hold in Temecula. It currently has six microbreweries that are largely based in the city’s industrial areas. In addition, several restaurants that brew their own beer have staked out key locations in city commercial districts.

Those restaurants – which are not covered by the moratorium – include Lou and Sharon Kashmere’s Garage Brewing Co. and such chain restaurants as Karl Straus Brewing Company and BJ’s Restaurant.

One of Temecula’s microbreweries is currently seeking permission to expand, Watson said. The other five have all expressed an interest to follow suit, he said. All six of those operations will be subject to the moratorium.

The city has not received any formal bids to open a new microbrewery, but “preliminary interest” has surfaced regarding the opening of a micro-distillery and tasting room, according to a staff report.

The microbrewery expansion requests have cited a desire for changes that include extended hours, scheduling music performances and other live entertainment, expanded tasting and sales areas and the addition of patio seating.

City planning commissioners grappled with some of the issues at their March 16 meeting. Many of the misgivings centered on the potential “harmful secondary effects” that could unfold in industrial parks or other locations where microbreweries or similar operations open or expand.

Those concerns included the need for security and parking requirements, the possibility of increased traffic and noise, the amounts of alcohol served to tasting room patrons, the availability of public transit and the businesses’ compatibility with nearby land uses.

As part of their analysis, Temecula planners will examine the policies and regulations of other cities.

Council members briefly questioned city planners on the need for a moratorium and whether it should be, as recommended, enacted immediately. Councilman Matt Rahn noted that the niche industry has potential “negative implications” that require set guidelines and operating conditions.

No residents or microbrewery representatives commented when the council fielded the issue and approved the moratorium on April 12.

“We need to take a breath,” Mayor Mike Naggar said as the discussion wound down. “This is nothing more than good planning.”