Rochester changes liquor law for new winery

ROCHESTER — To accommodate a recently opened winery, the Rochester Village Board has amended its liquor control ordinance to allow businesses to manufacture and sell their own alcohol.

Village President Dave Armstrong said he believes the decision to make the change for a single business is in all of Rochester’s best interest.

“Our philosophy all along is we don’t want taverns in the village, but we would like to encourage businesses that can sell various things that will up our sales tax take,” he said, noting that Rochester’s sales tax revenues have gone down with the loss of Gambino’s restaurant.

Under the ordinance revision, the percentage of alcohol sold must be no more than 40 percent of the retailer’s total revenue, in accordance with some of the existing classes of liquor licenses. The ordinance change also allows the village to issue outdoor permits for existing license-holders.

The Walnut Street Winery Plus Saunas opened Aug. 1. Owner Loren Shanle uses juices and concentrates from vineyards outside Illinois to make and bottle his own wines. The business, which includes an outdoor wine garden, also sells more than 25 wines, as well as cheeses, sausages and infrared saunas.

But Rochester’s existing liquor ordinance did not allow for an outdoor permit nor the manufacture of alcohol on-site.

“There wasn’t anything within our ordinances as they were written that could kind of cover that,” Armstrong said during Monday’s village board meeting, explaining the need to tweak the ordinance.

Unanticipated business

Both he and Trustee John Shoudel noted that when Rochester ended prohibition two years ago, trustees never anticipated a business such as Shanle’s.

Therefore, village attorney Mark Cullen wrote an amendment creating a Class “M” license, which permits the manufacturing, bottling, consumption, tasting and sale of alcoholic liquor for on-site or off-site consumption. A manufacturer is defined as someone licensed by the Illinois Liquor Control Commission.

“It does require that alcoholic liquor is accessible only during those hours of operations as specified in the liquor control ordinance. That way, in the same respect as convenience stores, they cannot sell alcohol except within the prescribed hours in the village of Rochester,” Cullen said.

The change also allows liquor license-holders to be eligible for an outdoor permit to sell alcohol outside the building as long as the area is surrounded by a 6-foot or higher fence, among other restrictions.

The board discussed the amendment during Monday’s meeting.

Trustee Joe Hill said he was concerned that the Class M license’s proposed language did not limit what portion of gross sales could be alcohol compared to other items.

“Is this a way to get a tavern in Rochester?” he asked.

Cullen explained that it would be possible unless the language was revised.

“I thought one of the general understandings was that we didn’t want a tavern to get a license in the village when we passed the liquor ordinance to begin with. This seems to be creating a way to circumvent that,” Hill said.

Now six types of liquor licenses

Alcohol sales were allowed in Rochester after the village board approved regulations in July 2007. Voters approved a proposition ending prohibition that spring.

Rochester’s existing liquor ordinance limits the number of liquor licenses issued and the type of businesses allowed to sell alcohol. Taverns and package liquor stores are prohibited.

Hours for alcohol sales were set for between 8 a.m. and 10 p.m. Sunday through Thursday and 8 a.m. to 11:59 p.m. Friday and Saturday for banquet halls, caterer retailers and restaurants.

The original ordinance also defined five types of liquor licenses and the number of licenses that are available: one each for banquet halls and special events, three each for restaurants and retail stores, and two for caterer retailer. When the board first approved a license for the Walnut Street Winery Plus Saunas in November, it increased the number of retail licenses available to four.

Hill requested that the new manufacturer sale license be reworked to put in restrictions that exist in the restaurant and retail store licenses that limit alcohol sales to up to 40 percent of a business’ revenues. The rest of the board agreed, and Cullen adjusted the amendment.

Trustee John Shoudel noted the village board likely will have to continue re-examining and adjusting its liquor ordinance as Shanle’s business expands and new businesses come to town.

“What if he becomes an exporter, then it becomes totally unrealistic to say you have to have a certain amount of your sales (comprise other products)… You don’t want the guy to lose out or for us to lose out on $100,000 in sales tax because people are ordering wine from all over the country, but they have to order a case of cheese with it,” he said. “We need to be realistic. We’re trying to keep out taverns. We’re not trying to keep out legitimate business.”

Amanda Reavy can be reached at 788-1525.

The amendments to Rochester’s Liquor Control Ordinance

--Creation of a Class “M” License that permits “the manufacturing, bottling, consumption, tasting and sale of alcoholic liquor by a manufacturer for consumption on the premises where sold or for consumption off the premises only in the original package by a retailer who is also a manufacturer of alcohol where the sale of alcoholic liquor is incidental to the sale of other merchandise at retail and in no event more than 40 percent of the gross revenues of the retailer.” Alcohol can only be sold during hours permitted in the existing ordinance and no drive-through windows are allowed. The annual license fee is $600 and there is a limit of three licenses that are available.

--Creation of an Outdoor Permit in which a liquor license holder may sell alcohol outside of the business under the following conditions:

--All sales must conclude and the area must be cleared no later than the time specified in the liquor license.

--A permanent fence at least 6 feet in height should be put up so that “vision of a person on either side of the fence is obscured when viewing through the fence.” The fencing should separate the area where liquor is consumed from any adjoining residential or commercial property.

--No access to the outdoor area is permitted from the street, sidewalk or an adjoining property.

--Music cannot be played or broadcast from the outdoor area or within the permanent structure “which is of such a volume so as to disturb the neighborhood in any manner.”

--No sales or dispensing of alcohol from the outside or permanent structure to anyone on adjoining property, public street, sidewalk or alley and no liquor served in an open container can be taken outside the outdoor area or permanent structure.

--Annual fee for an outdoor permit is $100.