PUBLIC HEARING 6:30 P.M.: Receive and hear all persons desiring to be heard on the proposed amendments to the Development Code for Chapter 2, Article II Zoning Districts and Land Uses, establishing an Alcoholic Beverage On-Premise Overlay District and proposed rezoning for the existing First Colony Mall development located at 16535, 16529, 16511, 16517 Southwest Freeway. 

Consideration of and action on a recommendation for a Development Code amendment establishing an Alcoholic Beverage On-Premise Overlay District and proposed rezoning for the existing First Colony Mall development located at 16535, 16529, 16511, 16517 Southwest Freeway, to the Members of City Council.

Hold a Public Hearing followed by Consideration of and Action on a Recommendation to the Members of City Council on a Development code amendment and the proposed rezoning for the existing First Colony Mall development located at 16535, 16529, 16511, 16517 Southwest Freeway.

The City has initiated an amendment to Chapter 2, Article II of the Development Code to establish an Alcoholic Beverage On-Premise Overlay District as well as the rezoning of First Colony Mall from General Business District (B-2) to General Business District (B-2), Alcoholic Beverage On-Premise Overlay District (AB-OP). Overlay districts are special zoning districts overlaid on one or more standard zoning districts that impose additional standards and requirements that may be more or less restrictive than those of the underlying district(s).
 
Currently, facilities that derive more than fifty percent of their revenue from the sale of alcoholic beverages for consumption on premises are prohibited in the B-2 zoning district and all other standard nonresidential zoning districts. The purpose of the proposed overlay district is to support the redevelopment of First Colony Mall by allowing a wider variety of entertainment opportunities, such as bars, taverns, cocktail lounges, and wine bars. The mall is part of the Sugar Land Town Center Regional Activity Center (RAC), which is envisioned to be a retail and entertainment destination. Establishing this overlay district would align with the intent of this RAC and align with several goals from the Land Use Plan.
 
First Colony Mall (FCM), owned by Brookfield Properties, LLC (Brookfield), has had a presence in Sugar Land for over 25 years. The City and FCM have a long-standing public/private partnership and have collaborated on improvement projects over the years to ensure its long-term success. Starting with the 2006 10-year Mall Expansion Development Agreement that included the construction of the Lifestyle Center, a three-block outdoor plaza located on the northeast side of the mall. The Lifestyle Center accommodates approximately 25 businesses and was designed to attract shoppers through outdoor amenities like a fountain, outdoor furniture, and outdoor restaurant patios.
 
In 2017, FCM approached the City with a proposal to make improvements to the Lifestyle Center and asked that a new public/private partnership be formed to attract new business tenants and increase sales. The improvements were mirrored after the Baybrook Mall Lifestyle Center and included the removal of the fountain, adding artificial turf, shade awnings, oversized lawn games, a 21-foot by 11 ½-foot digital screen, and other amenities to further activate and enhance the outdoor space. The idea is to provide entertainment and activity opportunities beyond a typical shopping experience and host events, children’s activities, movie nights, and more.
 
Post-COVID, competition has only increased, and it’s important that FCM can explore ways to continue attracting visitors and enhancing the shopping experience. In December 2022, Brookfield approached the City about a new tenant opportunity, Little Woodrow’s, interested in the Lifestyle Center location currently being utilized by Breakers Korean BBQ. Little Woodrow’s is a beer garden/sports bar and grill that started in Houston and has grown to over 20 locations, including Austin, San Antonio, Corpus Christi, Katy, Tomball, Lubbock, and more. Little Woodrow’s started as an adult-only bar but has integrated into suburban markets with a family-friendly model. The proposed location would mirror the family-friendly model located in Bee Cave, Texas, which lies adjacent to the outdoor mall, Hill Country Galleria. While kids are allowed, it will be age 21 and up in the late evening.
 
Economic Development staff vetted this opportunity through the Economic Development Committee, which supported finding an appropriate solution to allow this type of tenant at First Colony Mall. Since bars are prohibited outside of a PD, staff worked with Legal to research other communities and best practices for similar situations. Staff feels that supporting the allowance of bars in FCM further supports the long-term partnership with Brookfield, enables them to make necessary business decisions, and aligns with the type of retailers envisioned within Regional Activity Centers.
 
It should be noted that the proposed overlay district is modeled after the City of Farmers Branch’s Alcoholic Beverage (On-Premise) Overlay District that was adopted in 2017. Staff reached out to the City of Farmers Branch with questions regarding the implementation of their overlay district. Staff inquired about the intent of their overlay district, legal challenges that might have arisen during implementation, and if there are any supplemental regulations in the overlay district for establishments that serve alcoholic beverages for on-premises consumption. The Deputy Director of Planning at Farmers Branch stated that “there was interest in the community to allow bars and other establishments to allow on-premise consumption of alcohol without being a qualified restaurant. The two locations identified on the overlay district map and boundary were appropriate for such uses.” She also stated there were no additional regulations with the overlay districts.
 
Documents provided are the proposed amendments to the Development Code and the overlay district boundary on an aerial and a zoning map. The proposed amendments to Chapter 2, Article II, include creating an Overlay District Table in Section 2-51, amending where bars are permitted in the Nonresidential Districts permitted Uses and Parking Schedule in Section 2-91, and adding Part 8 – Alcoholic Beverage On-Premise Overlay Districts (AP-OP).  
 
This meeting will be to hold the public hearing for the overlay district and proposed rezoning. Due to the nature of this request and a desire for the mall to pursue timely redevelopment, staff would request the Commission hold Consideration & Action during this meeting and would support a recommendation of approval to the Mayor and City Council.