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Elk River Spirits Co

Type of building a dsp can be in?

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Good evening everyone! I'm a newbie to ADI, and am in the beginning stages of starting a small dsp in TN. We have incorporated and began selling stock to raise capital. We have successfully negotiated with a small town to deed us a small piece of real estate to locate the dsp on. My question is related to whether or not there are any ttb regs on the actual type of building we can put the dsp in? We are considering several different options including pole barns, prefab cabins, site built, and even modular buildings such as a surplus classroom building set on piers and bricked underneath. We do not have any zoning restrictions in our county. Any insight would be appreciated! 

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I don't believe there are any set regulations on what kind of building it can be, but i think there is a requirement saying that storage needs to be in an area of substantial construction. 

 

I haven't seen anything made from a surplus classroom yet, but I'm pretty sure everything else you mentioned has been done already.

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No problem. I don't think you'll have an issue with that as long as you have TTB compliant locks on it. One thing to watch out for with having storage of bonded product in a separate building is having special requirements for your bond. 

I know we had an issue with trying to use 2 unconnected buildings when we were getting our DSP and would have had to file consent of surety to cover movement of untaxpaid spirits between buildings. I'm not sure what that involves, but if you talk to someone taking care of your bond, they should be able to help.

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TTB does not specify a type of building.  It must be secure.  All doors, windows and other opens must be secured when no one is on the premises. 

The regulations say premises must be continuous.  Discontinuous premises can be approved and it is common to do so. 

A storage container is acceptable and you may describe it as such without concern about objection.  You apply for that when you make your application. 

If you do not need a bond, then you do not need a consent of surety.  Few startup small distilleries need a bond. 

Generally, my advice is to listen to no one who does not cite chapter and verse to allow you to confirm what they say., but it is too late tonight to quote the regulations on this.  You will find it all in part 19. 

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Elk River,

 

You will probably have to follow state health department requirements concerning your building.  One of their requirements is that the interior walls in the production area be smooth and easy to clean.  Also they have requirements about hand washing sinks and other things.  Also if you are going to be open to the public there may be requirements concerning your bathrooms being handicap accessible etc.  You should contact your state health department and have them send you the requirements.

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On the issue of a barn - if you are locating on a tract that has a residence, it complicates things.  I know that six people will probably respond that they know of situations where it has not been a problem, but in the last month TTB has has specifically asked me, on three occasions,  if a DSP  for which I have made application, is located on a tract that also has a residence.  One was in a commercial building in the downtown area of a city and another was located in a rural area, which, when the specialist looked at the Google Maps satellite view appeared to  be in an areas that also had residences.  Yes, the specialist took a look at Google Maps to see that.   When I asked about it, the specialist said that since the bonding requirement went away, a lot of people want to start a small distillery in their backyard, so they are checking on it.   I submit a lot of applications for clients, so I get to see how things change.  In short, just like investing, past performance is not an indicator of future results.  TTB operating procedures,  like markets, can change.

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Right, I was aware it could not be on a tract with a residence. We are acquiring 3ac in an industrial park with only 1 other business in it, 30 ac away. It also has no zoning requirements other than it must be a business, so we were looking at cheaper building alternatives initially such as portable buildings and a shipping container for storage, until we grow into a larger facility. The land has been given to us, and we have sold enough stock to go this route for now. Thanks for the insight! 

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