Council approves specific-use permit for Mad Hatter Distillery tasting room in downtown Nacogdoches

The Nacogdoches City Council on May 21 unanimously approved a specific-use permit to allow a craft distillery with an on-site tasting room at 403 East Hospital Street in downtown Nacogdoches.

Interim city planner Juan told the council the property lies in the B3 central business district adjacent to downtown historic districts and that staff had sent nine property-owner notices and received one written comment in favor. Staff recommended approval with conditions, including restricted hours of operation and that tasting and service be limited to the interior of the existing building. The Planning and Zoning Commission had voted unanimously to recommend approval on May 13.

Applicant Sherry Hat, who identified herself as owner of the Mad Hatter Distillery, said the operation will use the existing building (described in the staff presentation as approximately 12200 square foot) and emphasized local sourcing for ingredients, tourism and downtown economic benefits. She told the council the business will pursue required state permits — a distiller’s and rectifier’s permit from the Texas Alcoholic Beverage Commission (TABC) and a distiller’s permit and labeling/bottling approvals from the Alcohol and Tobacco Tax and Trade Bureau (TTB) — and expected TTB processing to take about 75 days and TABC timelines to be longer (the applicant described current TABC waits of six to 12 months).

After brief public comment and a motion, the council voted to approve the specific-use permit with the listed conditions.

Next steps for the applicant include applying for TTB and TABC licensure and Fire Marshall review; the approved city permit allows the use subject to the listed conditions but does not replace state licensing requirements.