What happened?
During the May 20 joint planning and zoning and city council meeting, plans for the Fredericksburg-based winery to open in the former Texas General Store, located at 406 S. Main St., was denied by council, 5-2.
However, planning and zoning approved the conditional use permit, 6-1.
“[There is] no reason to change the use of this building,” Mayor William D. Tate said. “It's been retail for over 100 years for its entire existence. The only reason for changing the zoning is to get more rent. We've got to require more parking downtown, provided by the owners, for Main Street to survive. It's not the responsibility of the people of this community to use their tax dollars to provide parking for buildings and investors who can afford to spend $1 million or $2 million for that building.”
The conditions
The plans would have the historic building, originally constructed around 1900, become a wine tasting facility. It would feature 18 bar stools for members, a guest tasting area for 12-15 people to stand and a limited-service kitchen, according to council documents.
Brian Heath, owner of the winery since 2006, said the Heath Family Brands operates urban tasting rooms in Fredericksburg and Georgetown. He said his family owns 68 acres of vineyards in the Hill Country, which produces 150,000 gallons of wine and attracts more than 200,000 guests annually.
Heath said he expects the Grapevine store to bring between 30,000 and 50,000 visitors each year when looking at numbers at the other two tasting rooms.
“We believe that many of our members will frequent other Grapevine businesses when they come based on our experience in Georgetown,” Heath said. “This is a relatively small space. I think it's going to be a beautiful space, but it is a relatively small space, so we anticipate our staffing to be aligned with that.”
What you need to know
Heath was quizzed about the sales tax and what the business would generate. Items such as merchandise sales, wine by the glass and bottle would garner Grapevine city tax. He guessed roughly 32% of customers pick up wine at the stores/tasting room, which would have city tax. He said Heath Family Brands generates more revenue from the club membership and shipping wine than from in-store sales. He estimated the business to generate $70,000-$75,000 a month.
Council Member Sharron Rogers asked Heath how much sales tax is generated from his two tasting room locations, but he did not have that data.
Quote of Note
“It’s our job to find that balance in the historic district. So we don't tip one way or the other,” Council Member Paul Schleta said. “If I look at the 400 block where this location is, the east side of [the] 400 block currently, we have 63% of the square footage is winery or restaurant. And then if this application was approved, then the west side is 52% restaurant, winery. I like your company. I have a problem with the location. I think the downtown is getting to overrun with restaurants and wineries, and I feel like we have to focus on the businesses that we currently have and how to promote them during these tough times.”
