The New Orleans City Council is set to vote on the draft Comprehensive Zoning Ordinance (“CZO”) on May 14, 2015. The CZO will have major implications for micro-distilleries and micro-breweries, which have been lightly regulated until now.

The current CZO allows both “local breweries” and “micro-distilleries”. Each definition has certain volume limitations for production and both allow tasting rooms. Facilities are either permitted or conditional uses in a variety of zoning districts.

In the new CZO, the new definition of “micro-brewer/micro-distillery” clarifies that other uses (such as a standard restaurant or bar) are also permitted in addition to the facility itself. However, a provision was added that “only beverages produced on-site may be sold.” That restriction is NOT in the current CZO and would eliminate viable business models that sell alcoholic beverages that are produced both on-site and by others.

If the current language passes, then breweries such as Gordon Biersch, Crescent City Brewery, and Courtyard Brewery would suddenly become non-conforming, unpermitted uses, and no new brewery/restaurants would be able to operate in New Orleans. The New Orleans City Council has the power to amend the draft CZO prior to its adoption, so there is a possibility that the restrictive language will be eliminated in the final version.

More information about the new CZO and the amendment process may be found here: New Orleans City Council CZO

The text of the new CZO definition:

Micro-Brewery/Micro-Distillery. A facility for the production and packaging of malt beverages of low alcoholic content for distribution, retail or wholesale, on- or off-premises, with production of not more than twelve-thousand five hundred (12,500) barrels per year, or for the distilling of liquors, with a production of not more than twelve thousand (12,000) gallons per year. The facilities may include a tasting room or other uses such as a standard restaurant, bar, or live entertainment as permitted in the zoning district, subject to the use standards of Article 20 and parking standards of Article 22. A tasting room shall be subject to the use and parking standards of a bar. A separate liquor license is required for the sale of alcoholic beverages on-site; however, only beverages produced on-site may be sold.