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Published On: 2/26/15

Ocean City Council Endorses Craft Distillery Bill

By: DispatchAdmin via Maryland Coast Dispatch

OCEAN CITY — The Mayor and Council this week officially endorsed legislation in the Maryland General Assembly which, if approved, would create a Class 9 craft distillery license allowing eligible license holders to produce their own distilled spirits on their premises and conduct guided tours and tastings, for example.

Senate Bill 523, introduced by Senator Jim Mathias, and House Bill 689, introduced by Delegate Mary Beth Carozza, would create a Class 9 craft distillery license in Worcester, opening opportunities for eligible liquor license holders to distill spirits on their premises and market them under their own label. While the new craft distillery license on the surface could open up the opportunity for all Class D license holders in the county, of which there are few, it is essentially tailored to one existing operation.

Last year, Seacrets launched its new line of craft distilled spirits, including a white rum, spiced rum, vodka and gin under its own label. The Seacrets spirits are sold at the iconic nightclub and restaurant and are available to wholesalers for distribution, but the craft spirits are not produced locally. For want of an appropriate license, Seacrets reached out to the Delaware Distilling Company in Rehoboth, which crafted the unique alcoholic beverages under the Seacrets label.

The House and Senate bills currently circulating in the General Assembly would rectify the situation, allowing Seacrets, and presumably other operators with a Class D license, to produce their own distilled spirits in Worcester County. The Class 9 license holders would open and operate distilleries right on site and would be able to conduct guided tours, tastings and other enhanced visitor experiences on their premises after meeting certain requirements and gaining approvals as conditional uses.

Last Thursday, attorney Joe Moore, who represents Seacrets, appealed to the Ocean City Mayor and Council to officially support the legislation. Moore’s appeal had some urgency because the House Bill was scheduled for a committee hearing on Monday and committee members wanted the town of Ocean City’s endorsement before approving the legislation, which is expected to be a local courtesy bill.

Moore explained the bill as written wouldn’t touch off a proliferation of craft distilleries throughout the resort and, for the time being, was essentially tailored to one existing establishment. He said Seacrets and others seeking the craft distillery license in the future would still have to seek the town’s approval as a conditional use.

“This is a pretty generic bill,” he said. “It wouldn’t allow any distillery operation unless this council approved it as a conditional use.”

Moore said the council’s endorsement of the legislation would allow his client to move its distillery operation fro Delaware to its 49th Street location, providing a positive economic opportunity while providing another enhanced visitor experience.

“Seacrets has its own label and produces rum, vodka and gin, but they’re required to go to a Delaware distillery,” he said. “This bill would rectify that situation. Their products would be produced right here and those jobs would go to Ocean City. It would be an economic boon for the town and would be very beneficial.”

After little debate, the council agreed to send a letter endorsing the legislation to the appropriate committees in the General Assembly. Councilman Dennis Dare said the bill would allow Seacrets and presumably others in the future to open craft distilleries similar to the craft breweries that have sprouted up in recent years. He said the town was protected somewhat because any proposed operation would have to be approved by the council as a conditional use.

“I think having a craft distillery would enhance the town,” he said. “I’m confident after going through the conditional use process for a craft brewery it would be carefully scrutinized.”

 

 

 

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