By Glenn Rolfe

DAGSBORO — A spirited issue brewing for several months was recently finalized, as Town Council approved an amendment banning large-scale manufacturing of alcoholic beverages in the town center district.

By a 4-1 vote at its late-January meeting, council backed the change to town code, which identifies storage, distilling, manufacturing, processing, distributing and the wholesale and retail sale of alcohol as a prohibited use within the district.

A public hearing at the meeting drew no response in favor or against.

Council members’ consensus was that those types of facilities, such as breweries, would be better suited for the highway commercial district.

Councilman Will Labor, who cast the one dissenting vote, said he had concern that the amendment lists “storage” of liquor, beer, wine and hard cider.

“But we do allow bars and restaurants, which would store those substances, as well, in order to sell them. It seems a little contradictory to me,” he said. “Restaurants, if it has a bar attached to the restaurant, it would have kegs if they have draft beer and things like that. So the ‘storage’ part is a little confusing, and there may be some questions about that.

“I also think the difference between a restaurant and a bar versus like a Thompson Island or an Ocean View (Brewing Co.) or something like that — where they have kind of a production piece but is mainly focused on the restaurant — I don’t think there is a lot of difference.”

Town solicitor Greg Morris also weighed in.

“When I am reading this section, it is really meant to not deal with restaurants,” he said. “It is really for someone who is distilling, manufacturing or distributing to other facilities. Clearly, a restaurant would need to have a few cases of beer or whatever they sell. Isn’t this dealing with major production?”

Following a lengthy discussion of the amendment, which was recommended by the town Planning Commission, council members Norwood Truitt, Teresa Ulrich, William Chandler III and Mayor Brian Baull felt the proposal was quite clear.

“I take it as a combined,” said Councilwoman Ulrich. “Everything is combined. It says ‘distillation, manufacturing, processing, distribution and wholesale and retail.’ So that is one whole lump sum. I think it should stay in there, and I think it should stay out of town (center) limits.”

Councilman Chandler agreed.

“When I look at that sentence, it is all of those things combined that are being said are not permitted in this district,” he said. “That is production, storing, distilling, manufacturing, processing, distributing and the wholesale and retail sale. I think that actually is clear.”

Kyle Gulbronson, the town’s consultant with AECOM, added, “I think the language is pretty tight. You are not allowed to produce. You are not allowed to store. You are not allowed to distill. You are not allowed to manufacture or distribute. And you can’t sell it. I think it’s pretty tight.”

Councilman Chandler offered further explanation on the language.

“I took it to be that the understanding or the intention of the planning and zoning commission was that there wouldn’t be facilities in the town center that would be manufacturing and producing spirits, alcohol, etc. Restaurants will be selling it, but that is not the same as producing it and making it on-site. So that is what I think is the distinction here, and to me, it made sense, and I thought that is what we were doing.”

Dagsboro’s town center zoning district has been under review regarding an update of permitted and prohibited uses along the in-town thoroughfares of Del. 20 and Del. 26.

Along with alcohol-manufacturing establishments, the specifically identified prohibited uses in the town center zone are businesses involved in the sale of pornographic materials and medical cannabis dispensaries or related industries.