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HomeMy WebLinkAbout5.0_Craft Brewery Ordinance_PA2017-181oG��WPOR>m CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT U r� s C'qG/FORNP SUBJECT: Craft Brewery Ordinance (PA2017-181) Zoning Code Amendment No. CA2017-004 SITE LOCATION: Citywide APPLICANT: City of Newport Beach PLANNER: Chelsea Crager, Assistant Planner 949-644-3227, ccrager@newportbeachca.gov PROJECT SUMMARY March 22, 2018 Agenda Item No. 5 An amendment to the Zoning Code revising the City's regulations related to alcoholic beverage manufacturing. Specifically, the amendment would establish regulations permitting alcoholic beverage manufacturing with tasting rooms in the Industrial Zoning District. RECOMMENDATION 1) Conduct a public hearing; 2) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305 (Minor Alterations in Land Use Limitations), because it has no potential to have a significant effect on the environment; and 3) Adopt Resolution No. PC2018-010 (Attachment No. PC 1) recommending the City Council approve Zoning Code Amendment CA2017-004. 1 9 Ptdlb '®® jj6" 4 • t ¢61Np4 !b .FJ.IA.L.JLJL. 'f � i.i t.it. . .+t -• _ . �.� - fi•++.� _ -, _ ��iia tit}> wsaf .: ..��-y,,. _ .. www w�■. i_ . i rnu:au �[f n:rs£ C3[dEIl Hall�Im - rrtu�,t - «utf r^�3n fax• ....•........ ......�. . . . . . . . . . . . . . . . . . . . . ua. • w au ..mra. LC -.-_- Ptdlb '®® jj6" 4 • t ¢61Np4 !b .FJ.IA.L.JLJL. 'f � i.i t.it. . .+t -• _ . �.� - fi•++.� _ -, _ ��iia tit}> wsaf .: ..��-y,,. _ .. www w�■. i_ . V� QP �. Craft Brewery Ordinance Planning Commission, March 22, 2018 Page 3 The alcoholic beverage manufacturing industry, including tasting rooms, is a growing industry that provides new economic opportunity for small businesses. In the last decade, the craft breweries industry has expanded substantially within Orange County. Currently alcoholic beverage manufacturing is defined as a "food processing" land use under the Zoning Code and is a permitted use within the Industrial (IG) Zoning District. However, the Zoning Code does not allow on-site consumption of alcohol (tasting rooms) in conjunction with food processing. Based on research, staff believes that tasting rooms are an important component of the craft alcoholic beverage manufacturing business model and that an amendment to the zoning standards is warranted. On October 5, 2017, the Planning Commission initiated a Code Amendment to consider allowing craft breweries, wineries, and distilleries with tasting rooms in the IG Zoning District subject to discretionary review. DISCUSSION The proposed Zoning Code Amendment is included as Exhibit A of Attachment No. PC 1. It provides development standards and operational limitations for new craft breweries, wineries and distilleries, including limitations to the size of the tasting room, hours of operation, provision of food service, and parking as summarized below. The Newport Beach Police Department has also incorporated security and training standards into the proposed Amendment and is not opposed to the allowance of tasting rooms with no late hours (after 11 p.m.) in the IG Zoning District. In addition, the draft ordinance requires discretionary review through a minor use permit, which allows the City to evaluate a proposal on a case-by-case basis and to place appropriate conditions of approval on establishments based upon the unique circumstances of each proposal. Location and Permit Processing The draft ordinance conditionally allows alcoholic beverage manufacturing in the IG Zoning District subject to approval of a minor use permit. Approval of a minor use permit requires a public hearing with the Zoning Administrator and notification of all property owners within a 300 -foot radius. There are a total of 39 IG zoned properties located in the West Newport -Mesa industrial area near Costa Mesa. Alternatively, the draft ordinance could be written to require a conditional use permit necessitating a public hearing with the Planning Commission. Although the IG zoning district allows moderate and low -intensity industrial uses, more sensitive land uses that surround the zone include the Multi -Unit Residential (RM), Private Institutions (PI), and Public Facilities (PF) zoning districts. Therefore, a discretionary 5 Craft Brewery Ordinance Planning Commission, March 22, 2018 Page 4 process allows the review authority to review each case for compatibility with surrounding land uses and apply conditions of approval as appropriate. Definition The draft ordinance includes a land use definition for "alcoholic beverage manufacturing." This would reclassify breweries, wineries and distilleries from a "food processing" land use to a land use with specific standards appropriate for alcoholic manufacturing, sales and service. Tasting Room Standards To maintain land use compatibility with the surrounding industrial and office uses, the draft ordinance regulates the accessory tasting rooms as follows: Size — The size of tasting rooms would be limited to 750 square feet. Hours of Operation — Hours of operation of the tasting rooms will be limited to between the hours of 11 a.m. and 11 p.m., daily. No late hours (after 11 p.m.) would be permitted. The proposed ordinance does not include a limitation on hours of operation for the manufacturing aspect of the use. Food Service — The proposed ordinance does not require food service; however, food preparation and/or service is allowed to be included as an accessory use of the tasting room. The establishment may prepare food onsite or allow food stands/trucks that do not interfere with required parking or circulation. Requiring food service is an option; however, some craft breweries do not provide food service and staff felt it could be an impediment to establishing the targeted uses. Outdoor Patio — Outdoor patios up to 1,000 square feet in size would be allowed. The patio design would be considered as a part of individual use permit applications and reviewed for compatibility with surrounding land uses and zoning districts. Parking The ordinance includes a parking requirement of one parking space per 500 square feet of gross floor area for the manufacturing use including the tasting room. This ratio is the same requirement for small industrial uses. The tasting rooms associated with alcoholic beverage manufacturing are anticipated to have peak hours of operation offset from the general manufacturing and office uses located in the vicinity, with highest demands on weekdays after 5 p.m. and weekends. As a result, staff does not anticipate any parking conflicts. Again, the discretionary process will require a review of parking to ensure the adequacy of parking based upon an individualized assessment. VI Craft Brewery Ordinance Planning Commission, March 22, 2018 Page 5 General Plan Consistency All properties within the IG Zoning District are also designated General Industrial (IG) within the Land Use Element of the General Plan. This designation is intended to provide for a wide range of moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses. The proposed tasting rooms with possible food service are accessory to the manufacturing use. Therefore, staff believes the proposed amendment is consistent with the General Plan land use designation. Alternatives The following alternatives are available to the Planning Commission: 1. The Planning Commission may suggest specific changes to the ordinance or request additional study to address issues of concern. If any changes are substantial, the item should be continued to a future meeting to allow additional analysis and drafting of a revised ordinance. 2. If the Planning Commission believes the proposal is inappropriate for the community for any reason, the Commission may move to discontinue pursuit of the amendment and direct no further action. Environmental Review Staff recommends the Planning Commission find the proposed amendment categorically exempt under Section 15305, of the California Environmental Quality Act (CEQA) Guidelines — Class 5 (Minor Alterations in Land Use Limitations). All the lots within the IG Zone have an average slope of less than twenty percent; this amendment does not change the land use density, category or zoning district of the affected lots. Public Notice Notice of this amendment was published in the Daily Pilot as an eighth page advertisement, consistent with the provisions of the Municipal Code, and mailed to all owners of property within the IG Zoning District and owners of property within 300 feet of the boundaries of the IG Zoning District. Notice of the hearing was posted at 18 locations throughout the IG Zoning District. Additionally, the item appeared on the agenda for this meeting, which was posted at the Civic Center and on the City website. 7 Prepared by: " "I-�L Chelsea Crager, As #ant Planner ATTACHMENTS Craft Brewery Ordinance Planning Commission, March 22, 2018 Page 6 Submitted by: Jim Campbell Deputy Community Development Director PC 1 Draft Resolution Recommending City Council Approval of CA2017-004, including Code Revisions 01112/18 2 Attachment No. PC 1 Draft Resolution Recommending City Council Approval of CA2017-004, Including Code Revisions 0 10 RESOLUTION NO. PC2018-013 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING CITY COUNCIL ADOPTION OF ZONING CODE AMENDMENT NO. CA2017-004 TO AMEND LAND USE REGULATIONS RELATING TO ALCOHOLIC BEVERAGE MANUFACTURING WITHIN THE INDUSTRIAL ZONING DISTRICT (PA2017-181) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. Pursuant to Newport Beach Municipal Code ("NBMC") Subsection 20.66.020(B), the Planning Commission initiated an NBMC amendment on October 5, 2017, to amend the land use regulations relating to alcoholic beverage manufacturing within the Industrial Zoning District. 2. The subject properties are designated Industrial ("IG") by the Land Use Element of the General Plan and are located within the Industrial ("IG") Zoning District. 3. The subject properties are not located within the Coastal Zone. 4. A public hearing was held on March 22, 2018, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. This code amendment is categorically exempt under Section 15305, of the California Environmental Quality Act ("CEQA") Guidelines — Class 5 (Minor Alterations in Land Use Limitations) because the lots affected by this amendment have an average slope of less than twenty percent; this amendment does not change the land use density, category or zoning district of the affected lots. SECTION 3. FINDINGS. 1. The alcoholic beverage manufacturing industry is a new and upcoming industry that provides new economic opportunity for small businesses. 2. The NBMC does not address alcohol consumption as an accessory use to an industrial use, and therefore provides no regulation or allowance for alcoholic beverage manufacturing with a tasting room. 3. Alcoholic beverage manufacturing is an appropriate use in the Industrial Zoning District provided that it is adequately regulated. 11 Planning Commission Resolution No. PC2018-013 Paqe 2 of 5 4. The attached code amendment provides a review process and standards to ensure that alcoholic beverage manufacturing establishments and tasting rooms are operated with no detriment to the surrounding community. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby recommends approval of Code Amendment No. CA2017-004 as set forth in Exhibit "A," which is attached hereto and incorporated herein by reference. PASSED, APPROVED, AND ADOPTED THIS 22ND DAY OF MARCH, 2018. AYES: NOES: ABSTAIN: ABSENT: BY: Peter Koetting, Chairman I--ya Erik Weigand, Secretary 01-03-17 12 Planning Commission Resolution No. PC2018-013 Paqe 3 of 5 EXHIBIT "A" Zoning Code Amendment No. CA2017-004 Section 1: NBMC Subsection 20.70.020(A) (Definitions of Specialized Terms and Phrases) is amended to add a definition to read as follows: "Alcoholic beverage manufacturing" means establishments that produce or manufacture alcoholic beverages of all types. Businesses under this use class may have a tasting room and/or outdoor patio where they sell and serve alcohol produced or manufactured on the alcoholic beverage manufacturer's licensed premises for On -Sale or Off -Sale consumption. Section 2: Table 2-12 in NBMC Section 20.24.020 (Allowed Uses and Permit Requirements) is amended to add a row as follows: Alcoholic Beverage Manufacturing I MUP I Section 20.48.230 Section 3: Table 3-10 in NBMC Section 20.40.040 (Off -Street Parking Requirements) is amended, in part, to add the "Alcoholic Beverage Manufacturing" row as follows: Alcoholic Beverage Manufacturing 1 per 500 sq. ft. Section 4: NBMC Section 20.48.230 (Alcoholic Beverage Manufacturing) is added to NBMC Chapter 20.48 (Standards for Specific Land Uses) to read as follows: 20.48.230 Alcoholic Beverage Manufacturinq This section establishes standards for the establishment and operation of alcoholic beverage manufacturing and tasting rooms. A. Tasting Room. An accessory tasting room may not exceed a total of 750 square feet. A tasting room shall consist of the floor area where alcoholic beverages are consumed, including any bar and seating areas, but shall not include restrooms or employee service areas. B. Outdoor Patio. In addition to a tasting room, an outdoor patio may be permitted by the review authority and shall comply with the following standards: 1. Location. An outdoor patio shall be located on private property and not located in any required parking space or access way. 2. Area. An outdoor patio area may not exceed 1,000 square feet in area. 01-03-17 i3 Planning Commission Resolution No. PC2018-013 Paqe 4 of 5 3. Barriers. Appropriate barriers shall be placed between outdoor patio areas and parking, pedestrian, and vehicular circulation areas. Barriers shall serve only to define the areas and shall not constitute a permanent all-weather enclosure. 4. Associated Elements. Physical elements (e.g., awnings, covers, furniture, umbrellas, etc.) that are visible from public rights-of-way shall be compatible with one another and with the overall character and design of the principal structure(s). C. Hours of Operation. Hours of operation of the tasting room and/or outdoor patio area shall be limited to between the hours of 11:00 a.m. to 11:00 p.m., daily. The review authority may further limit hours to ensure compatibility with surrounding uses. D. Grain Silo. A grain silo may be permitted to be located outside of the building serving as the alcoholic beverage manufacturing use. The grain silo may not be located in any required parking space or access way. E. Outdoor Storage. Outdoor storage, with the exception of a grain silo, shall be screened in accordance with the requirements in Section 20.48.140 (Outdoor Storage, Display, and Activities), or any successor section. F. Outdoor Equipment. Roof -mounted and ground -mounted mechanical equipment shall be screened in accordance with Section 20.30.020 (Buffering and Screening), or any successor section. G. Entertainment. 1. No video, electronic or other similar amusement devices or games shall be permitted. 2. The review authority may permit live entertainment and dancing. H. Security. Management shall maintain a security recording system with a thirty (30) calendar day retention and make those recordings available to police upon request. Management shall maintain an operational log of daily activities related to the sale and service of alcoholic beverages, as well as any additional security actions. Management shall make this log available to the police upon request. The review authority may require additional security measures. I. Occupancy. The number of persons shall not exceed the maximum occupancy load as determined by the Newport Beach Fire Department. Signs indicating the occupant load shall be posted in a conspicuous place on an approved sign near the main exit from the room. 01-03-17 7 Planning Commission Resolution No. PC2018-013 Paqe 5 of 5 J. Food Service. Food preparation and/or service may be allowed as an accessory use to an alcoholic beverage manufacturer's licensed premises. Portable food stands, street kitchens or food trucks shall not obstruct required parking, fire lanes, or circulation. K. Lighting. Parking lots, driveways, circulation areas, aisles, passageways, recesses and grounds contiguous to building making up an alcoholic beverage manufacturing use shall be provided with enough lighting to illuminate and make clearly visible the presence of any person on or about the alcoholic beverage manufacturer's licensed premises during the hours of darkness and shall provide a safe and secure environment for all persons, property, and vehicles onsite. L. Signage and Display. 1. Signs shall be posted inside the authorized alcohol service area near the exit stating, "No alcohol allowed past this point." 2. The display of alcoholic beverages shall not be located outside of a building or within five (5) feet of any public entrance to the building. M. Sales. 1. A licensed alcoholic beverage manufacturer may sell alcoholic beverages that are produced and bottled by, or produced and packaged for, that manufacturer for either on-site or off-site consumption. 2. A licensed alcoholic beverage manufacturer may sell equipment and ingredients intended for the purposes of brewing beer at home. N. Admission. There shall be no admission fee, cover charge, nor minimum purchase required for admission into the building or premises. O. Training. All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages within sixty (60) calendar days of date of hire. This training must be updated at a minimum every three (3) years regardless of certificate expiration date. The certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying/licensing body, which the State may designate. The establishment shall comply with the requirements of this section within sixty (60) calendar days of approval. Records of each owner's, manager's and employee's successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 01-03-17 15 Planning Commission - March 22, 2018 Item No. 5a Additional Materials Received Craft Brewery Ordinance (PA2017-181) From: Elliott Loft To: Planning Commissioners Subject: Craft Brewery Ordinance (PA2017-181) Zoning Code Amendment No. CA2017-004 Date: Tuesday, March 20, 2018 7:48:18 PM Attachments: Craft Brewery Ordinance (RA2017-181)docz Elliott Loft, LLC 870 Production Place Newport Beach, CA 9263 (949) 642-5415 City of Newport Beach Planning Commission. Subject: Craft Brewery Ordinance (PA2017-181) • Zoning Code Amendment No. CA2017-004 Dear Planning Commissioners; This letter is in response to the proposal to allow microbreweries in the Industrial District. The proposed use is incompatible with the Industrial District. Parking issues, environmental concerns and attempting to bring a bar/restaurant into the Industrial District are detrimental to the business environment and property values. History Our family purchased the industrial building located at 864-870 Production Place in the Fall of 1983. Since that time, we have operated a sail making business in a portion of the building. When we first opened our business on Production Place the area was quiet with many manufacturing businesses. There was ample on -street parking for customers coming to the area. Today this situation has dramatically changed for the worse. Typically, there is no on - street parking available. We feel there should be a Two-hour time limit for on street parking. Additionally, "Pop Up Events" are now common place with the associated problems they bring. Study Area We believe the proposed incompatible use brings to the forefront the need to perform a study of the entire Industrial District. The City and stakeholders must begin the process to determine the highest and best uses for the properties located in the Industrial District. We believe the piecemeal approach to zoning is creating serious issues and problems, thereby impacting real property values. Environmental The Staff Report is woefully inadequate in the following areas; Planning Commission - March 22, 2018 Item No. 5a Additional Materials Received Craft Brewery Ordinance (PA2017-181) • On-site parking. • Hours of operation. • Wastewater treatment • Excessive use of domestic water for beer production purposes. • Brewery mash/waste disposal. • Security and protection of neighboring properties: trash, special events, public urination, and property damage. • Airborne emissions including odors generated by the brewing process. • No specification of the number of restrooms required. • Noise pollution from live entertainment. Elliott Building, LLC and Elliott Loft, LLC reserve the right to bring all legal actions available to us based on the above objections to the proposed project. Thank you very much for considering our concerns and comments regarding not only the brewery project but also the Industrial District. We desire to continue operating our sail loft in our building. The question is whether special projects or other zoning issues will allow us to continue operating our sail loft in Newport Beach. We are more than happy to open a dialog with you and the City Staff regarding the future of the Industrial District. We look forward to working with you. Sincerely, Ian Elliott Elliott Loft, LLC Planning Commission - March 22, 2018 Item No. 5a Additional Materials Received Craft Brewery Ordinance (PA2017-181) Elliott Loft, LLC 870 Production Place Newport Beach, CA 9263 (949)642-5415 City of Newport Beach Planning Commission. Subject: Craft Brewery Ordinance (PA2017-181) • Zoning Code Amendment No. CA2017-004 Dear Planning Commissioners; This letter is in response to the proposal to allow microbreweries in the Industrial District. Executive Summary The proposed use is incompatible with the Industrial District. Parking issues, environmental concerns and attempting to bring a bar/restaurant into the Industrial District are detrimental to the business environment and property values. History Our family purchased the industrial building located at 864-870 Production Place in the Fall of 1983. Since that time, we have operated a sail making business in a portion of the building. When we first opened our business on Production Place the area was quiet with many manufacturing businesses. There was ample on -street parking for customers coming to the area. Today this situation has dramatically changed for the worse. Typically, there is no on -street parking available. We feel there should be a Two-hour time limit for on street parking. Additionally, "Pop Up Events" are now common place with the associated problems they bring. Study Area We believe the proposed incompatible use brings to the forefront the need to perform a study of the entire Industrial District. The City and stakeholders must begin the process to determine the highest and best uses for the properties located in the Industrial District. We believe the piecemeal approach to zoning is creating serious issues and problems, thereby impacting real property values. Planning Commission - March 22, 2018 Item No. 5a Additional Materials Received Craft Brewery Ordinance (PA2017-181) Environmental The Staff Report is woefully inadequate in the following areas; • On-site parking. • Hours of operation. • Wastewater treatment • Excessive use of domestic water for beer production purposes. • Brewery mash/waste disposal. • Security and protection of neighboring properties: trash, special events, public urination, and property damage. • Airborne emissions including odors generated by the brewing process. • No specification of the number of restrooms required. • Noise pollution from live entertainment. Elliott Building, LLC and Elliott Loft, LLC reserve the right to bring all legal actions available to us based on the above objections to the proposed project. Conclusion: Thank you very much for considering our concerns and comments regarding not only the brewery project but also the Industrial District. We desire to continue operating our sail loft in our building. The question is whether special projects or other zoning issues will allow us to continue operating our sail loft in Newport Beach. We are more than happy to open a dialog with you and the City Staff regarding the future of the Industrial District. We look forward to working with you. Sincerely, Ian Elliott Elliott Loft, LLC Planning Commission - March 22, 2018 Item No. 5b Additional Materials Received Craft Brewery Ordinance (PA2017-181) From: Craaer. Chelsea To: Ramirez, Brittanv Subject: RN: Craft Brewery Ordinace Date: Thursday, March 22, 2018 10:02:53 AM Attachments: imaae001 ona CHELSEA CRAGER Community Development Department Assistant Planner ccraoer(@ ne woortbeoch ca. ao v 949-644-3227 CITY OF NEWPORT BEACH 100 Civic Center Drive, First Floor Bay B, Newport Beach, California 92660 1 newportbeachca.gov From: gordon.wanlass@gmail.com[mailto:gordon.wanlass@gmail.com] On Behalf Of Gordon Wanlass Sent: Wednesday, March 21, 20181:48 PM To: Crager, Chelsea <ccrager@newportbeachca.gov> Subject: Craft Brewery Ordinace Dear Planning Commissioners, For the official record I would like to state the following concerns with the Craft Brewery Ordinance (PA2017-181): • Parking is already very bad on Production Place and adding tasting rooms will only make the problem worse. The residents of the apartment buildings and mobile homes near the IG area park on Production Place and Monrovia all night. The argument that the tasting room customers will be parking during off hours is incorrect. There are no off hours. • The odor, air pollution and waste water from the manufacture of beer and wine will be an issue. Isn't the city trying to "Go Green" and be sustainable? Every brewery will have a smoke stack. • The noise from the entertainment provided by tasting rooms will be an issue. • Keeping the street clean is already an issue. There is no designated day when parking is prohibited for street cleaning. The tasting rooms will bring more trash into the area. • Traffic will be impacted. Do we really need more bars and drunk drivers near Carden Hall grade school, Coastline Community College and Pacifica High School? Also, increased truck traffic will be required to remove the waste mash from beer production. Thank you for considering our concerns. Please question why the city is driving this change. We are happy to work with the city to make Newport Beach a better place to live and work. Best regards, Gordon Wanlass Benda Building LLC 871-877 Production Place Newport Beach, CA 92663 If you received this message in error please let me know. Planning Commission - March 22, 2018 Item No. 5c - Additional Materials Presented At Meeting Craft Brewery Ordinance Craft Brewery Ordinance (PA2017-181) Planning Commission Public Hearing March 22, 2o18 PA2o17-181 .`, o3/22/i8 i i 1 - L • r Community Development Department - Planning Division s K 25 NIWNILL ST Costa Mesa 'o r Costa Mesa e ■ IG (Industrial) 3 m PF (Public Facilities) ■ PI (Private Institutions) �c sr �< ■ OM (Office Medical) - • — - • — - • — - • — - ■ RM (Multi -Unit Residential) oa oa - PRODW noN Pt Community Development Department- Planning Division 3 Planning Commission - March 22, 2018 Item No. 5c - Additional MaterialsPr t Meeting Craft Brewery Or ' 17-181) Definition o3/22/z8 Outdoor patio l,000 SF max Community Development Department- Planning Division ►A 110nrr»tIIid o3/22/z8 Community Development Department- Planning Division N 1 For more information contact: Chelsea Crager, Assistant Planner 949-644-3227 ccragerQa newportbeachca.gov www.newportbeachca.gov Item Planning Commission - March 22, 2018 No. 5c - Additional Materials Presented At Meeting Craft Brewery Ordinance (PA2017-181)