Retail sales may be permitted as a matter of right under local zoning laws when they are accessory to manufacturing activities, the Commonwealth Court has ruled.

The court’s decision in House 2 Home v. Zoning Hearing Board of North Coventry Township, held that under the township’s ordinance, no special exception or conditional use approval is needed.

The case stems from a dispute over the use of a property located in the township's I-2 Industrial District. The property had long been used for manufacturing, but the owner, House 2 Home, sought to add a retail component as an accessory use, specifically to sell goods produced on-site.

The township’s zoning board initially ruled that retail sales would require a special exception, asserting that such an addition would be a significant change to the nonconforming use of the property.

Court’s Analysis

The Commonwealth Court disagreed, stating that retail sales, when properly defined as accessory to manufacturing, do not constitute a change or expansion of the original use. North Coventry’s zoning ordinance allows for retail on the premises of manufacturing businesses, provided the area devoted to retail does not exceed 20% of the building’s gross floor area.

This use, the court found, is explicitly permitted by right as an accessory to manufacturing, meaning no special approval is needed.

In its decision, the court also addressed the addition of outdoor seating for beverage consumption, ruling that this service is incidental to the retail activity. The court noted that retail outlets like bookstores or clothing stores often provide seating as an incidental service, and this should apply similarly to a beverage manufacturer’s retail operations.

For more information, please contact Robert Kravets at 215.918.3621 or rkravets@foxrothschild.com or any member of Fox Rothschild’s Real Estate Department.