Staff Report: Application for a New Lounge Area Endorsement License for Ryes and Shine Craft Distillery (103-2323 Millstream Road) – License No. 114899

Staff Report: Application for a New Lounge Area Endorsement License for Ryes and Shine Craft Distillery (103-2323 Millstream Road) – License No. 114899

DATE: Tuesday, February 18, 2025
DEPARTMENT: Planning
SUBJECT: Application for a New Lounge Area Endorsement License for Ryes and Shine Craft Distillery at 103-2323 Millstream Road – License No. 114899

EXECUTIVE SUMMARY

Ryes and Shine Craft Distillery, owned by operator Kelly Darwin, recently leased the property at 103-2323 Millstream Road and is applying through the Liquor and Cannabis Regulation Branch (LCRB) for a Lounge Area Endorsement, which allows manufacturers to sell liquor for onsite consumption, sell samples without a daily maximum volume per person, and offer entertainment and amplified sound. Currently, the participation of the local governments in the review of liquor license applications allows municipalities to either opt-out of the review process entirely and leave it to the licensee to post an advertisement in the newspapers and an onsite notification board to notify surrounding neighbors for comment to the LCRB, or opt-in, which includes the process of notifying the public through mail outs or advertisements. If Council wishes to comment on the application, whether positive or negative, the City will be required to opt-in and undertake the notification process.

BACKGROUND

Since 1987-88, the site has operated as a pub, with a lounge, patios, and a brewery being added over the years. The brewery opened in 2016 and was operated by a separate company known as the Axe and Barrel Brewing Company. This change of business also required a new liquor license application and review by Local Government. The Axe and Barrel closed in 2020. In 2021 a new business opened which operated as The Millstream Beverage Company Ltd. That business also closed, in July of 2024.

Table 1: Site Data

Current Planning Designations

• Current Zoning: Neighbourhood Mixed Use (C6A)
• Current OCP Designation: Neighbourhood Centre

COMMENTARY

Kelly Darwin, operator of the Ryes and Shine Craft Distillery, has applied to operate a distillery at 103-2323 Millstream Road. The operator has opted to apply for a Lounge Area Endorsement license. Person capacity for the Millstream Beverage Company Ltd. was 35 inside and 45 on the patio for a total of 80. The new operation is requesting an increase in person capacity to 100, with 36 inside and 64 on the patio. This occupancy load has been reviewed by the City’s Building Department.

Capacity

The hours of operation are proposed to be reduced slightly from the hours utilized by the former business at this location. As shown below, Ryes and Shine intends to open one hour later each day and close at 11pm, including on Fridays and Saturdays. The operator has noted that the hours may be reduced in the off-season when the patio is closed.

Previous Hours of Operation

Proposed Hours of Operation

Bylaw Enforcement has stated that this site has historically followed regulation well enough to keep from attracting complaints or attention from the Liquor Inspectors. From a Bylaw Enforcement perspective there is little to indicate that the City should anticipate any problems, especially given that the hours are being reduced.

Should Council decide to opt into the notification process, notifications would be sent by mail to neighbours within 30 meters of the subject property, similar to that of a Development Variance Permit.

If Council decides to opt out of notification and the gathering of public input, the LCRB will direct the licensee to undertake their own notification process, including advertisements in the local newspaper and posting a notification advertisement onsite to complete their own review process.

Given that this application is to continue a similar use, Council may wish to opt out of the notification process for this application. Traditionally, the City has opted out of this process unless an application is perceived to be potentially impactful to the neighbourhood.

Strategic Plan Alignment

The proposed application aligns with Section 3: Economic Development and Section 5: Good Governance of Council’s Strategic Plan.

Financial Implications

In this instance, the policing costs should remain the same since this is a continued use that has operated on this site for many years.

If Council decides to opt-in to notifying, the cost of providing mailouts to neighbours within 30 meters of the site would be approximately $45. As this application is referred to us from the LCRB, there is no application fee, and the City is not able to recover the costs.

If Council decides to opt-out of comment, there would be no cost to the City for this process.

Legal Implications

The authority to issue or amend liquor licenses and endorsements rests solely with the Province. The Liquor and Cannabis Regulation Branch does refer to Council for comment, which may give the perception that the City controls the process. Notwithstanding this perception, the City should not be found liable for the way in which the Province exercises its authority in this realm.