Special Land Use & Liquor License Request, 510 Butler Street (Wickwood Inn)

To:

City of Saugatuck, City Council

From:

Grayson Moore, Director of Planning & Zoning

Meeting Date:

June 3, 2026

RE:

510 Butler, Special Land Use & Liquor License Request

City Commissioners, McKenna has submitted a Special Land Use application on behalf of the Wickwood Inn requesting approval to allow the service of alcoholic beverages at 510 Butler Street (Parcel No. 57-300-055-00), located within the R-4 City Center Transitional Residential District (CER). Pursuant to Section 154.092(P) of the Zoning Ordinance, establishments seeking approval to sell or serve alcoholic beverages outside of a commercial zoning district require Special Land Use approval in addition to obtaining the appropriate license from the Michigan Liquor Control Commission and local governmental approval from the City. During its May 21, 2026 meeting, the Planning Commission recommended approval of the special land use to serve alcoholic beverages at 510 Butler with conditions unanimously. Motion by LaChey, supported by Baldwin to recommend approval of the special land use to allow the service of alcoholic beverages at the Wickwood Inn bed and breakfast establishment. This motion is based on compliance with Section 14.092 P and on the positive findings related to the special land use standards of approval in Section 154.082, as documented in the staff memo dated May 15, 2026. The following conditions apply to this approval: 1. The applicant shall secure the appropriate license form the State of Michigan Liquor Control Commission. 2. Alcoholic beverages shall only be served to overnight guests of the Wickwood Inn at the stated capacity maximum of 28 persons as part of their regular meal service. 3. Alcoholic beverages shall not be sold by the glass or offered for purchase outside of the standard room charge. 4. Alcohol service shall remain incidental and accessory to the bed and breakfast use. 5. Outdoor service of alcohol shall not be permitted after 10pm.

During deliberation, the applicant requested removal of Condition No. 3, which prohibited alcoholic beverages from being sold by the glass or offered for purchase outside of the standard room charge. Following discussion, the Planning Commission agreed to amend the motion and proceed with the revised conditions listed below. Motion by LaChey, supported by Baldwin to approve the amended motion for approval of the special land use to allow the service of alcoholic beverages at the Wickwood Inn bed and breakfast establishment. This motion is based on compliance with Section 14.092 P and on the positive findings related to the special land use standards of approval in Section 154.082, as documented in the staff memo dated May 15, 2026. The following conditions apply to this approval: 1. The applicant shall secure the appropriate license from the State of Michigan Liquor Control Commission. 2. Alcoholic beverages shall only be served to overnight guests of the Wickwood Inn at the stated capacity maximum of 28 persons as part of their regular meal service. 3. Alcohol service shall remain incidental and accessory to the bed and breakfast use. 4. Outdoor service of alcohol shall not be permitted after 10pm. The applicant has submitted the attached presentation addressing their intended compliance with Chapter 90: Alcoholic Beverages and Section 154.082: Standards for Special Land Use Approval. In the submitted statement, the applicant agrees to service of alcoholic beverages being exclusively permitted to overnight guests. Section 154.092 outlines design standards for select special land uses including for the service of alcoholic beverages shown below. Each standard was evaluated by the Planning Commission in their evaluation and should be considered during the final decision made by Council. (P) Service of alcoholic beverages standards. (1) Any new establishment seeking a license for the sale and consumption of beer, wine, or alcoholic beverages on-premises shall require special land use approval and site plan review in accordance with this division. (2) The applicant shall provide a copy of any licensing materials submitted to the Michigan Liquor Control Commission. (3) The applicant shall provide a site plan illustrating the proposed location where the alcohol sales would occur, as well as all other locations where on-premises sales presently exist within a one thousand-foot radius of the closest lot lines of the subject site.

(4) The proposed establishment must promote the city’s economic development goals and objectives, and must be consistent with the city’s master plan and zoning ordinance. (5) Given the character, location, development trends and other aspects of the area in which the proposed use or change in use is requested, the applicant shall demonstrate that the use will: rejuvenate an underutilized property or an identifiable area within the city; provide a unique business model, service, product, or function; add to the diversity to the city or to an identifiable area within the city; or, that the addition of the use or proposed change in use will be otherwise a benefit or asset to the city or identifiable area. (6) The applicant must demonstrate that the use or change in use as constructed and operated is compatible with the area in which it will be located, and will not have appreciable negative secondary effects on the area, such as: (a) Vehicular and pedestrian traffic, particularly during late night or early morning hours that might disturb area residents; (b) Noise, odors, or lights that emanate beyond the site’s boundaries onto property in the area on which there are residential dwellings; (c) Excessive numbers of persons gathering outside the establishment; or (d) Peak hours of use that add to congestion or other negative effects in the neighborhood. Section 90.47 outlines the following reasons that a request for a license shall be denied: (1) For any reason which would prohibit the applicant from obtaining a license from the Michigan Liquor Control Commission. (2) For a person who does not own or have an option to purchase the location for which a license is sought or does not have a lease therefore for the full period for which the license is issued. (3) For a location where there exists an uncorrected violation of the applicable construction, building, electrical, mechanical, plumbing or fire codes, applicable zoning requirements, applicable public health regulations or any violation of any ordinance or other applicable law, rule, regulation, order or directive. (4) For a location where it is determined by the City Council that the premises does not or will not reasonably soon after commencement of operations have adequate off-street parking, lighting, refuse disposal facilities, screening, fire safety, or noise or nuisance control. (5) Where the City Council determines that the proposed location is inappropriate considering the zoning of the location; the desirability of establishing a location in developed,

commercial areas, in preference to isolated, undeveloped areas; the attitude of adjacent residents and property owners; traffic safety; accessibility to the site from abutting roads; capability of abutting roads to accommodate the commercial activity; distance from public or private schools for minors; proximity of an inconsistent zoning classification; accessibility from primary roads or state highways; or based on a recommendation from the Planning Commission to deny the request. (6) For any person, partnership or corporation in default of any financial or contractual obligation to the city, including, but not limited to, the payment of any administrative fee, civil or criminal fine, real or personal property tax, special assessment or any city administered utility fee or the breach of any contract, pledge or similar binding commitment to which the city is a party. Staff has not identified any apparent grounds for denial under Section 90.47 based upon the information submitted by the applicant and the City's review of the request to date. The decision of whether a license should be issued shall be determined in the sole discretion of the City Council. A sample motion has been provided to encompass the special land use request and resolution for the related liquor license. Motion to approve Resolution 260603, granting local governmental approval for a liquor license to be located at 510 Butler Street, the Wickwood Inn Bed & Breakfast Establishment, and to approve the associated Special Land Use request for the service of alcoholic beverages. This motion is based on compliance with Section 154.092(P) and the positive findings related to the Special Land Use standards contained in Section 154.082, as documented in the staff memorandum dated May 15, 2026. The following conditions apply: 1. The applicant shall secure the appropriate license from the State of Michigan Liquor Control Commission. 2. Alcoholic beverages shall only be served to overnight guests of the Wickwood Inn at the approved maximum occupancy of 28 persons. 3. Alcohol service shall remain incidental and accessory to the bed and breakfast use. 4. Outdoor service of alcohol shall not be permitted after 10:00 PM.

__________________________________________________________ 6. __________________________________________________________ 7. __________________________________________________________ 5.

Respectfully submitted,

LUCY STREET

WATER STREET

BUTLER STREET

GRIFFITH STREET

FRANCIS STREET

ST JOSEPH STREET

SPEAR STREET

MARY STREET

MAIN STREET

HOFFMAN STREET

MASON STREET

CULVER STREET

NORTH

Liquor-Licensed Properties within ~1000 ft of 510 Butler St (Saugatuck, MI) Working list; verify MLCC license numbers and types with MLCC database.

1. The Butler — 40 Butler St 2. Sand Bar Saloon — 141 Butler St 3. Phil’s Bar and Grill — 215 Butler St 4. Pumpernickels — 202 Butler St 5. Noble Twist Taphouse — 248 Butler St 6. Marro’s Restaurant — 147 Water St 7. Wicks Park Bar & Grill — 449 Water St 8. Coral Gables (Il Forno / Crow Bar / Rathskeller / Oyster Bar) — 220 Water St 9. Bowdie’s (Chophouse) — 230 Culver St 10. Scooters Café & Pizzeria — 322 Culver St 11. Loco Burrito — 322 Culver St 12. New Holland Brewing — 201 Culver St, Unit 3 13. Isabel’s Market (Pietsch/McWebb Hospitality Group) — 236 Culver St 14. Duck Alley (Weidman Outdoors) — 220 Culver St 15. Fenn Valley Vineyards — 310 Butler St 16. Mitten Brewing Company — 329 Water St 17. Retro Boat Rentals — 730 Water St 18. The Barge (528 Water Street, LLC & Ship ’N Shore LLC) — 528 Water St 19. Marker 14, LLC — 360 Water St, Units 1–6 & 12 20. Coppercraft Distillery LLC — 360 Water St, Units 9–11

24 Dining Room

30 Green Terrace

22 Brick Terrace

Butler Street

Pool House

Mary Street

the wickwood inn

5 1 0 b u t l e r s t r e e t s a u g at u c k , m i the wickwood inn

( 269) 8 57-14 65 wickwoodinn.com o w n e d & o p e r at e d b y s o u c i e h o r n e r d e s i g n c o l l e c t i v e

PROP LINE

184.93'

ACCESSORY 674.6 SQ. FT. 2 GUEST D.U.

132.00'

132.25'

PRINCIPAL 4,126.8 SQ. FT 11 GUEST D.U.

BUTLER STREET (66' WIDE)

ACCESSORY 413.0 SQ. FT.

ACCESSORY 1,403.5 SQ. FT. 3 GUEST D.U.

COMBINED LOT 24,729 SQ. FT.

PROP LINE

190.04'

MARY STREET (66' WIDE)

Wickwood Inn - Special Land Use Alcohol Sales in R-4 District Saugatuck Planning Commission May 21, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Application • This application is only for the service of alcohol. • Separate from the Conditional Rezoning process, and can be approved without rezoning. • Necessary because Wickwood is Zoned R-4/CER. • Wickwood would remain classified as a Bed and Breakfast Establishment.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Application Approval would not authorize Wickwood to alter their operations other than serving alcohol within their allowable food and beverage service operation: 1.

Wickwood is permitted to serve food to overnight guests only.

Wickwood is not permitted to charge a fee beyond the room rate for breakfast, but can offer other food service for an additional charge.

Wickwood can serve food and drink at meetings, parties, weddings, and other gatherings on property, but these activities are currently limited to overnight guests.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Application • Approval would not authorize Wickwood to alter their operations other than serving alcohol within their allowable food and beverage service operation:

• Planning and Zoning Director Grayson Moore confirmed via email on April 17 that Wickwood is

permitted to hold “activities” for overnight guests, which could include meetings, parties, weddings, and other gatherings that are sometimes described as “events.” Importantly, these activities are currently limited to overnight guests, per Director Moore. Food and drink can be served at these activities. This approval would allow alcoholic beverages to be served.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Confirming the Process •

The Zoning Ordinance contains conflicting provisions.  Generally, the Planning Commission is the final approving body for Special Uses.  But alcohol sales must go to Council?  When can Wickwood apply for the liquor license?  Can Site Plan Approval take place tonight?

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Standards  No New Construction  No External Alterations  No Changes to Automobile or Pedestrian Circulation.  No Operational Changes • Alcoholic beverages will be added to the existing food/drink offerings.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

By Request, for Groups of Guests

8 Pool House (interior)

30 Green Terrace (exterior)

22 Brick Terrace (exterior)

24 Dining Room (interior)

Regular Meal Service

Butler Street

Parking Spaces

Mary Street

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Standards •

The proposed request allows Wickwood to provide a more well-rounded service to its guests, within the current bounds of its approval as Bed and Breakfast Establishment.

The request enhances the use of existing structures, preserving their life, and reducing the demand for new development to sprawl into the countryside surrounding Saugatuck.

The impact on public services and facilities will be minimal.

Could reduce public intoxication and drunk driving.

Alcohol sales and storage regulated by Michigan Liquor Control.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Site Plan  No New Construction  No External Alterations  No Changes to Automobile or Pedestrian Circulation.  No Operational Changes • Alcoholic beverages will be added to the existing food/drink offerings.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Thank You for Considering our Request

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Wickwood Inn - Special Land Use Alcohol Sales in R-4 District Saugatuck Planning Commission May 21, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Application • This application is only for the service of alcohol. • Separate from the Conditional Rezoning process, and can be approved without rezoning. • Necessary because Wickwood is Zoned R-4/CER. • Wickwood would remain classified as a Bed and Breakfast Establishment.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Application Approval would not authorize Wickwood to alter their operations other than serving alcohol within their allowable food and beverage service operation: 1.

Wickwood is permitted to serve food to overnight guests only.

Wickwood is not permitted to charge a fee beyond the room rate for breakfast, but can offer other food service for an additional charge.

Wickwood can serve food and drink at meetings, parties, weddings, and other gatherings on property, but these activities are currently limited to overnight guests.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Application • Approval would not authorize Wickwood to alter their operations other than serving alcohol within their allowable food and beverage service operation:

• Planning and Zoning Director Grayson Moore confirmed via email on April 17 that Wickwood is

permitted to hold “activities” for overnight guests, which could include meetings, parties, weddings, and other gatherings that are sometimes described as “events.” Importantly, these activities are currently limited to overnight guests, per Director Moore. Food and drink can be served at these activities. This approval would allow alcoholic beverages to be served.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Confirming the Process •

The Zoning Ordinance contains conflicting provisions.  Generally, the Planning Commission is the final approving body for Special Uses.  But alcohol sales must go to Council?  When can Wickwood apply for the liquor license?  Can Site Plan Approval take place tonight?

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Standards  No New Construction  No External Alterations  No Changes to Automobile or Pedestrian Circulation.  No Operational Changes • Alcoholic beverages will be added to the existing food/drink offerings.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

By Request, for Groups of Guests

8 Pool House (interior)

30 Green Terrace (exterior)

22 Brick Terrace (exterior)

24 Dining Room (interior)

Regular Meal Service

Butler Street

Parking Spaces

Mary Street

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Special Use Standards •

The proposed request allows Wickwood to provide a more well-rounded service to its guests, within the current bounds of its approval as Bed and Breakfast Establishment.

The request enhances the use of existing structures, preserving their life, and reducing the demand for new development to sprawl into the countryside surrounding Saugatuck.

The impact on public services and facilities will be minimal.

Could reduce public intoxication and drunk driving.

Alcohol sales and storage regulated by Michigan Liquor Control.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Site Plan  No New Construction  No External Alterations  No Changes to Automobile or Pedestrian Circulation.  No Operational Changes • Alcoholic beverages will be added to the existing food/drink offerings.

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026

Thank You for Considering our Request

CONDITION AL REZONING REQUEST· CITY OF SAUGATUCK· May 6, 2026