Department of Community
& Development Services
Telephone (905) 468-3266
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1593 Four Mile Creek Road
P.O. Box 100
Virgil, Ontario
L0S 1T0

Submitted on:
May 07, 2019
Report:CDS-19-024

Report To:Community & Development Advisory Committee
Subject:ZBA-17-2018 - 963 Queenston Road
- Application for Zoning By-law Amendment
Proposed Estate Winery (Queenston Mile Vineyard)


1. RECOMMENDATION
It is respectfully recommended that:

1.1 The Zoning By-law Amendment application (File No. ZBA-17-2018), with the Staff revisions detailed in this report, for lands known municipally as 963 Queenston Road, be approved; and 1.2 The draft amending Zoning By-law, attached as Appendix B to this report, be forwarded to Council for adoption.

2. PURPOSE / PROPOSAL
The purpose of this report is to provide a recommendation to Council regarding an application under the Planning Act for a Zoning By-law Amendment to permit an Estate Winery on lands known municipally as 963 Queenston Road.

There is an existing approved Farm Winery currently on the property that is allowed a maximum 18.5 square metres (199 square feet) for the retail sale of wine. The application proposes to zone the property a site-specific Rural (A) Zone to permit an Estate Winery with a range of secondary uses and corresponding floor spaces. The applicant submitted several planning reports and documents prepared by the Niagara Planning Group in support of the application: Planning Justification Report (June 27, 2018); Addendum Report (February 6, 2019); Second Addendum Report (May 2019); and also revised Floor Plans (June 28, 2019).

The Estate Winery proposes a production area (minimum 200 square metres/2152 square feet), secondary use space for the retail sale of wine, hospitality areas (indoor/outdoor) and an agricultural market (combined maximum 380 square metres/4090 square feet), a kitchen (maximum 50 square metres/538 square feet) as well as offices, storage and washrooms. Appendix A includes Map 4 (Proposal - existing Farm Winery Site Plan) and Figures 1 & 2 (Floor Plans).

3. BACKGROUND
3.1 Site Description and Surrounding Land Uses
The subject lands are located on the south side of Queenston Road and east side of Concession 6 Road as shown on Map 1 of Appendix A. The property is in the agricultural area outside the Urban Area Boundary. The subject land has 17.7 metres (58 feet) of frontage on Queenston Road and approximately 288 metres (945 feet) of frontage on Concession 6 Road. The lot area is 20.53 hectares (50.72 acres) based on Municipal Assessment information. The majority of the property (14.16 hectares/35 acres) is in vineyard production according to the submitted reports. The surrounding lands are primarily used for agricultural purposes and rural residential use.

4. DISCUSSION / ANALYSIS
The application has been evaluated for consistency and conformity with the relevant Provincial, Regional and Town policies, Zoning By-law provisions and consultation comments as discussed in the following sections:

4.1 Planning Act, R.S.O 1990, c. P.13
Section 2 of the Planning Act identifies matters of Provincial interest that Council shall have regard to in carrying out its responsibilities under the Planning Act. Subsection 3(5) of the Planning Act requires that decisions of Council shall be consistent with provincial policy statements and shall conform with provincial plans that are in effect. Subsection 24(1) of the Planning Act requires that by-laws passed by Council shall conform to official plans that are in effect.

Subject to the analysis provided in the following sections of this report, Staff consider the application to comply with the provisions of the Planning Act.

4.2 Provincial Policy Statement (2014) (PPS)
4.2.1 Sewage, Water and Stormwater
Section 1.6.6.4 of the PPS states:
There is an existing private sewage system on the property that was approved by the Niagara Region and the owner completed installation requirements in October 2018. This system was sized with a maximum sewage flow rate of 10,000 litres/day but does not include any allowance for winery production wastewater. The Region accepted that any wine production wastewater would be transferred off-site. Regional Staff has recently confirmed that the existing septic system can accommodate the uses proposed through the rezoning based on updated sewage flow information from the applicant’s consultant.

4.2.2 Agriculture Policies
The PPS identifies the lands as within a prime agricultural area, and more specifically a specialty crop area. Policy 2.3.3.1 of the PPS provides as follows:
The PPS defines agriculture-related uses as follows: The PPS defines on-farm diversified uses as follows:

The principal use of the property is agriculture (vineyard). The wine production and wine sales component of the proposed Estate Winery is an agriculture-related use. The hospitality areas, agricultural market and kitchen are considered on-farm diversified uses and are subject to evaluation criteria contained in the Provincial Guidelines on Permitted Uses in Ontario’s Prime Agricultural Areas (discussed in Section 4.4 of this report).

4.2.3 Cultural Heritage and Archaeology
Policy 2.6.2 of the PPS states as follows:
The lands were subject to a Stage 1-2 Archaeological Assessment (Detritus Consulting Inc., May 2, 2018). The report recommended no further archaeological assessment for the study area. An acknowledgement letter from the Ministry of Tourism, Culture and Sport dated July 31, 2018 confirmed the fieldwork and reporting for the archaeological assessment was consistent with the terms and conditions for archaeological licences. If any development (such as expanded parking areas or laneways) were proposed beyond the limits of the submitted archaeological assessment, additional study would be required at the future Site Plan stage.

Staff consider the application to be consistent with the Provincial Policy Statement.

4.3 Greenbelt Plan (2017)
The 2017 Greenbelt Plan identifies the lands as within a specialty crop area and more specifically, within the Niagara Peninsula Tender Grape and Fruit Area. Policy 3.1.2.1 of the Greenbelt Plan provides as follows:

The Greenbelt Plan policies with respect to agriculture-related uses and on-farm diversified uses reflect the policies of the PPS and refer to the Guidelines on Permitted Uses in Ontario’s Prime Agricultural Areas. Staff consider the proposal to conform with the Greenbelt Plan.

4.4 Guidelines on Permitted Uses in Ontario’s Prime Agricultural Areas (2016)
The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) developed the Guidelines on Permitted Uses in Ontario's Prime Agricultural Areas (Guidelines) to assist in interpreting the Provincial Policy Statement. The Guidelines provide the following criteria with regard to agriculture-related uses and on-farm diversified uses:

The winery production and retail sale of wine are agriculture-related uses. There is no specific restriction on the scale of these uses. The criteria in the Guidelines for the agriculture-related use are satisfied from a Staff perspective.

The requested on-farm diversified uses generally meet the criteria identified in the Provincial Guidelines, subject to the following more detailed evaluation of scale (limited in area) requirement.

"Section 2.3.1 - Criterion 3 - Limited in Area" of the Guidelines provides the following:
The Guidelines recommend that the acceptable area occupied by on-farm diversified uses is up to 2% of a farm parcel to a maximum of 1 ha (2.47 acres). The Guidelines support the renovation of existing/former farm buildings for agriculture-related and on-farm diversified uses to limit any land taken out of production - a reduction to the land area calculation is allowed for such structures.

The subject land is 20.53 hectares (50.72 acres) in area. The calculation for 2% of the land area is 4106 square metres (1 acre). The applicant’s Second Addendum Report (May 2019) provides an analysis of building coverage, septic area and parking associated with the on-farm diversified uses. Staff differ slightly on some of the area allocations submitted but consider approximately 2747 square metres (0.68 acres) of the site is dedicated to on-farm diversified uses. This represents 1.34% of the total farm parcel which satisfies the Provincial Guidelines criterion for “limited in area”.

The Guidelines further recommend a limit (20% of the 2% land area) on gross floor area of buildings used for on-farm diversified uses. The threshold for on-farm diversified uses on the property according to the Provincial standard is 821.2 square metres (8839 square feet) of gross floor area. The proposed Zoning By-law Amendment requests a maximum of 430 square metres (4628 square feet) of secondary/on-farm diversified floor area. The application meets the Guidelines for limited floor area of on-farm diversified uses.

4.5 Niagara Region Official Plan (2014 Consolidation)
The Regional Official Plan (ROP) designates the lands as Unique Agricultural Area on Schedule B - Agricultural Land Base. Policy 5.B.1 of the ROP indicates that the highest priority will be given to preserving unique agricultural areas. Policy 5.B.3 of the ROP encourages a viable agricultural industry through support for a wide range of farm diversification uses in appropriate locations and at a scale suitable to the farm and the agricultural area where they contribute to economically sustainable agriculture.

The Regional Official Plan defines farm diversification as:
The following farm diversification policies are highlighted from the Region’s Official Plan: Policy 5.B.17
Farm diversification uses are recognized and may be permitted in accordance with the provisions of this Chapter. On-farm diversification is a potentially significant contributor to economically sustainable agriculture in Niagara, contributing to more access to local food and VQA wines, contributing toward the preservation of the agricultural land base and the scenic quality of the agricultural landscape. Policy 5.B.18
Farm diversification refers to those agricultural related value added and secondary uses that complement farming activities and provide for increasing the economic value and consumer appeal of an agricultural product or use. Farm diversification uses shall complement the principal agricultural uses on the property and in the surrounding area, and shall contribute to the sustainability and viability of the farming operation. All uses outside of settlement areas are subject to the Region’s servicing policies. Policy 5.B.21
The following criteria shall be considered when identifying whether or not diversification activities should be permitted in the Zoning By-law:
Policy 5.B.22
Farm diversification uses are small scale in relation to the principal farming operation. Preference is given to defining scale on the basis of size of the facilities and relationship to other uses rather than less enforceable criteria such as number of employees or value of product purchased. The appropriate scale for diversification uses may vary depending on the type of use and whether the activities are located in the Specialty Crop Areas (Tender Fruit or Grape Areas) or in the other Prime Agricultural Areas (Good General Agricultural Areas). Based on the additional analysis contained in this report, Staff consider the proposed estate winery, including the requested secondary uses, to conform with the policies of the Niagara Region Official Plan.

4.6 Town of Niagara-on-the-Lake Official Plan (2017 Consolidation)
The majority of the subject lands are designated Agricultural on Schedule A to the Town’s Official Plan as shown on Map 2 in Appendix A. Staff note the area along Queenston Road is designated Non-Farm Rural in the Official Plan. The Non-Farm Rural designation permits existing agricultural uses while Policy 8.4(4) of this section indicates agricultural use expansions may be restricted where the nature of the expansion would significantly impact on neighbouring residential uses.

4.6.1 Official Plan - Section 7: Agriculture Policies
Section 7.3.1 of the Town Official Plan includes Estate Wineries and agricultural markets as uses permitted independent of a main use (agriculture).

Section 7.4 (3) (b) of the Official Plan provides that Estate Wineries are permitted subject to the following criteria:
In addition, the following policies of Section 7.4 (3) (a) apply to all permitted secondary uses in the Agricultural designation:
The property exceeds the minimum area indicated in the Official Plan for an Estate Winery and the majority of the land is planted in vineyard. The applicant has provided the following information outlining the on-site wine production process - grapes are harvested and then crushed by hand; whole berry fermentation; aging; and bottling utilizing a portable bottling truck service. Further maceration takes place at an off-site facility. On this basis, the Official Plan criteria for locally grown fruit, crushing, fermentation and bottling to permit an Estate Winery are satisfied.

The amount of floor space proposed for the retail sale of wine (and the other requested secondary uses) is limited. The policies allow for the consideration of a hospitality room (where food and wine are served) and also an agricultural market where these uses are accessory to and complement the Estate Winery. It is typical for Estate Wineries to include hospitality/tasting and retail areas as part of the overall marketing of their wines and promotion of agricultural products.

The proposed Estate Winery has existing driveway access to Queenston Road which is a municipal collector roadway. The location of the existing building does not impact the vineyard or surrounding farmland. Required parking and any loading areas will be provided and directed away from adjacent rural residential uses.

Staff is satisfied that the application addresses Official Plan requirements.

4.6.2 Official Plan - Section 18.5 Archaeological Planning
Schedule H of the Town Official Plan identifies the lands as within an area of archaeological potential. As noted in Section 4.2.3 of this report, archaeological resource concerns have been addressed for the current development area. Further archaeological assessment may be required in the future.

4.6.3 Official Plan - Section 22.6 Holding
The Official Plan contains enabling policies that allow the inclusion of a Holding (H) symbol in a Zoning By-law to require certain matters be addressed prior to the use of the land. The H symbol would be removed upon satisfaction of the identified issues. It is appropriate to provide a Holding symbol in the proposed amending Zoning By-law to require Site Plan approval as discussed later in this report.

4.7 Zoning By-law 500A-74 (as amended)
4.7.1 Existing Zoning Requirements
The subject lands are zoned "Rural (A)" in Zoning By-law 500A-74 (as amended) - see Map 3 in Appendix A. Estate Wineries may be permitted in the Rural (A) Zone subject to a site-specific zoning by-law amendment and the identified guidelines.

Section 2 of the Zoning By-law provides the following relevant definitions:
Section 3 (General Provisions) provides the following requirements for an Estate Winery:
4.7.2 Proposed Zoning
Based on the information submitted with the application and Town Staff discussions with the Niagara Planning Group, the following site-specific zoning is requested:

Additional Permitted Uses
Estate Winery, Retail Sale of Wine, Hospitality Area, Agricultural Market and Kitchen.

New Definition
“Hospitality Area” shall mean part or all of a building such as indoor and outdoor areas (including but not limited to a deck/balcony/patio) where wine and food from the Estate Winery is served. Use of cooking equipment on site in the preparation of food is permitted in designated kitchen areas. Such uses shall remain ancillary to the main Estate Winery use.

New Provisions
Minimum Lot Frontage (Queenston Road) - 17 metres (55.7 feet)
Minimum Lot Area - 8.09 hectares (20 acres)
Minimum Exclusive Winery Production Area - 70 square metres (753 square feet)
Minimum Flex-Space Winery Production Area - 35% (130 sq. metres/1399 square feet)
Maximum Total Floor Area Secondary Uses - 430 square metres (4628 square feet)
Maximum Floor Area Hospitality/Retail Sale of Wine/Agricultural Market - 380 sq. metres
Maximum Floor Area Kitchen - 50 square metres (538 square feet)

The balance of the existing Zoning By-law provisions and definitions for an Estate Winery and Secondary Uses including parking, building setbacks, lot coverage and building height are not changed. Staff note that the existing winery building provides an approximate 26 metre (85 foot) setback from the rear lot line of the Queenston Road properties and also the building height and coverage are less than the maximum zoning provisions. The applicant has not requested any outdoor special events. The outdoor area under the balcony on the west side of the building is proposed as an exclusive production area (70 square metres). The applicant proposes flexible space for additional winery production and hospitality/retail areas. The production process is described to include hand crushing of grapes, barrel fermentation and bottle-rack aging with space requirements fluctuating at different times of the production cycle/season. The flex-space refers to shared indoor areas on the main floor and the outdoor covered patio at the south side of the building. These areas have a total of 371 square metres of floor area of which a minimum 35% (130 square metres) is dedicated to winery production. Therefore, the minimum combined production area is 200 square metres of floor area in the Estate Winery. Refer to Figure 3 in Appendix A for main Floor Plan illustrating the proposed Flex-Space.

The applicant has emphasized that a restaurant is not proposed in the Zoning By-law Amendment. The existing Hospitality Room definition includes food service but excludes commercial cooking equipment. The existing definition of an Agricultural Market permits the retail sale of certain baked goods that are baked on the premises. The Town’s Zoning By-law regulations for wineries were established in 1994. The distinction between preparing and serving food in a hospitality room as permitted for Estate Wineries compared to a restaurant is difficult from a practical standpoint. The pairing of food and wine is standard in the wine industry. The general intent of not allowing commercial cooking equipment would be to limit the scale of food service and assist in determining the appropriateness of such hospitality uses. The applicant’s addition of a new “hospitality area” definition (indoor and outdoor) that allows cooking equipment and a kitchen addresses the current zoning definition exclusion. Staff recommend minor wording changes as indicated in the draft by-law (Appendix B of this report).

The application proposes a total of 430 square metres for secondary use floor area. This proposal represents a minor increase to the existing Zoning By-law standard and is considered acceptable. The majority of Estate Winery applications approved by Town Council in recent years have surpassed these zone provisions. The current proposal is modest with respect to secondary use floor area.

The requested minimum lot frontage provision recognizes the existing property frontage on Queenston Road. This area contains the driveway entrance for the current Farm Winery. The frontage accommodates the municipally-approved driveway width of 6 metres (19.7 feet) for two-way traffic. There are no traffic volume or sightline issues at the Queenston Road entrance and a traffic study was not required for the application. The potential use of a Concession 6 Road driveway for winery patrons is not mandatory from a Staff perspective.

Existing zoning provisions indicate that lot frontage generally be at least 8 hectares (20 acres) and the applicant has included this as a minimum lot area in their submission. However, based on the review of the OMAFRA Guidelines on-farm diversified uses in Section 4.4 of this report and to recognize the existing functioning farm parcel, Staff recommend a 20.5 hectare (50.6 acre) minimum lot area be included.

Staff also recommend the inclusion of a Holding (H) symbol in the Zoning By-law respecting the approval of a Site Plan to address compatibility measures, any new parking areas and potential archaeological assessment requirements.

4.8 Consultation
4.8.1 Public Comments
An Open House was held on June 28, 2018 and the statutory Public Meeting was held on April 1, 2019, both at Town Hall. Members of the public made presentations at the Public Meeting and numerous written submissions have been received in objection and in support of the application.

Issues of concern relate to the proportion of the proposed Estate Winery dedicated to production compared to hospitality use, a possible restaurant use, the driveway to Queenston Road, Farm Winery enforcement and compatibility with the abutting rural residential uses. Staff advise that the proposed Estate Winery will be subject to Site Plan approval that should assist in improving land use compatibility with the potential for enhanced screening/trees as well as fencing at the north and east areas of the building/parking area.

Letters of support from other winery operators and grape/wine representatives indicate the proposal would promote the agricultural and wine industry and provide tourism and economic benefits.

Public comments are attached as Appendix C to this report.

4.8.2 Town Department and Agency Comments
Town Comments:
Building - No objection.
Corporate Services - No objection.
Fire Services - No objection.
Heritage Planner - No objection. Additional archaeological work may be required.
Operations - No objection.

Agencies
Niagara Region - No objection. The proposal is consistent with the Provincial Policy Statement and conforms with the Greenbelt Plan and Regional Official Plan. The Region notes that existing private sewage system is not sized/designed for wine production wastewater.

Niagara Peninsula Conservation Authority - No objection.

Agency comments are attached as Appendix D to this report.

5. STRATEGIC PLAN
Not applicable.

6. OPTIONS
Not applicable.

7. FINANCIAL IMPLICATIONS
The owner will be responsible for all costs associated with the development including future application fees for Site Plan Approval.

8. COMMUNICATIONS
Once Council has made a decision on the application, notice of the decision will be given as set out in the Planning Act. There is then a 20-day appeal period, after which, if no appeals are received, the decision is final.

9. CONCLUSION
Community & Development Services Staff recommend approval of Zoning By-law Amendment Application ZBA-17-2018 (with the Staff revisions detailed in this report), as the application meets Planning Act requirements, is consistent with the Provincial Policy Statement and conforms with the Greenbelt Plan, the Niagara Region Official Plan and the Town Official Plan.













Respectfully Submitted,

Jesse Auspitz, MCIP, RPP Rick Wilson, MCIP, RPP

Planner II Manager of Planning

Craig Larmour, MCIP, RPP for
Director, Community Holly Dowd
& Development Services Chief Administrative Officer



ATTACHMENTS
Appendix A - Report Sketches.pdfAppendix A - Report Sketches.pdfAppendix B - Draft By-law.pdfAppendix B - Draft By-law.pdfAppendix C - Public Comments.pdfAppendix C - Public Comments.pdfAppendix D - Agency Comments.pdfAppendix D - Agency Comments.pdf



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