Nags Head adopts rules for wine bars and tap rooms, bars on distilled spirits and outdoor entertainment

The Nags Head Board of Commissioners on May 6 adopted a board-initiated amendment to the town’s Unified Development Ordinance creating two new use categories — wine bar and tap room — and placing operational limits on them.

Planning Director Kelly Wyatt, presenting the staff recommendation, said the amendment was written to allow lower-intensity beer and wine–focused establishments while safeguarding the town’s longstanding prohibition on standalone bar and nightclub uses. Key provisions include prohibiting the sale of distilled spirits, requiring seated patron service, an 11 p.m. closing time, permitting indoor entertainment that complies with the town noise ordinance, and applying a parking standard consistent with restaurants (one space per 55 square feet of customer service area).

The Planning Board unanimously recommended approval after line-by-line review and edits to clarify enforceability. Commissioners discussed enforcement and the potential impact of pending state legislation that could limit local parking standards. Several commissioners described the change as a cautious, incremental step; others emphasized the need to monitor the use and preserve compatibility with adjacent properties. The board voted to adopt the ordinance and its consistency statement.

What the ordinance does not do: it does not allow distilled spirits, does not permit outdoor entertainment, and includes caps on outdoor customer service areas (500 square feet or 25% of indoor customer service area, whichever is less). Staff said the amendment aims to distinguish lower-intensity beverage-oriented businesses from higher-intensity microbreweries and bars.

Next steps: the ordinance takes effect as adopted; staff will enforce the new supplemental standards through the permitting process and inspect for compliance when uses are established.