Gunwhale Ales wants to open a microbrewery in Newport but needs a rule change

The Costa Mesa-born Gunwhale Ales craft brewery wants to expand to Newport Beach, but to do that the way it wants, it will need Newport to change its rules.

Current zoning code allows beer production in Newport’s industrial-zoned areas but doesn’t allow onsite tasting rooms, an element that commercial craft brewers say is key to their success. In a step toward bridging that gap, the city Planning Commission on Thursday will consider initiating a code amendment to allow onsite consumption.

Justin Miller, one of Gunwhale Ales’ three founders, grew up in Newport Beach and wants to see the Gunwhale concept in his hometown. He said he and business partner J.T. Wallace have known each other since kindergarten and now live near each other in Newport Heights. The other partner, Robert Fitzgerald, lives a few blocks away in Costa Mesa.

Miller said Los Angeles and San Diego have hundreds of microbreweries but Orange County has only about 40 to 50, mostly in inland cities.

The niche is growing in Costa Mesa, though, with its fifth and sixth microbreweries getting city approval last week. Gunwhale was Costa Mesa’s second locally based brewery when it opened its first location at 2960 Randolph Ave. in November. And business has been good, Miller said.

“We’re too small,” he said. “We’re outgrowing our space already.”

The partners submitted a letter to the city of Newport Beach last month proposing a brewery with a tasting room in an industrial pocket of west Newport around 16th Street and Placentia Avenue, near the Costa Mesa line. They have identified a few properties in the area that they could convert to a production brewery with a small space for selling beer for onsite consumption or packaged to buy and take away.

The potential code amendment would allow breweries with tasting rooms, subject to review on a case-by-case basis, with some regulations on building size, hours of operation, provision of food service and parking. Any change would need further Planning Commission review before being finalized by the City Council.

A staff report acknowledged that tasting rooms are an important part of the craft brewery model.

The proposal, written by Fitzgerald, described Gunwhale as a “premium but approachable brand.” It said the brewery would not prepare food but would be interested in hosting food trucks or receiving deliveries from nearby businesses. It also could provide food pairings or private beer and culinary experiences with local catering companies or restaurants.

“We believe Gunwhale Ales will complement other nearby concepts to prevent people from leaving the area for cultural, retail and entertainment purposes,” Fitzgerald wrote. “We also believe the city of Newport Beach (which is at virtual full development) can begin to compete in the craft beer boom that other cities are enjoying through a synergy of similar entrepreneurial ventures.”

Thursday’s Planning Commission meeting starts at 6:30 p.m. at City Hall, 100 Civic Center Drive.

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