City Council
MEETING DATE: 5/11/2016
TITLE:
Title
Second Reading of Ordinance Amending Title 9 Related to Medical Cannabis Businesses (ZOA 16-002)
End
FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council conduct the second reading and approve the Ordinance.
Body
BACKGROUND:
The City Council adopted Zoning Ordinance Amendment No. 16-001 (ZOA 16-001) amending Chapters 9.08, 9.30, 9.36, 9.40, 9.42, and 9.108 of the Zoning Ordinance related to medical cannabis on February 24, 2016. ZOA 16-001 was the first step in a comprehensive update to the Zoning Ordinance provisions regulating medical cannabis. ZOA 16-001 repealed the existing regulations that allowed medical marijuana dispensaries to operate in the City with a conditional use permit and replaced them with a new set of regulations that allowed medical cannabis dispensaries and cultivation sites to operate in the City with the proper approvals, including a conditional use permit. The City began accepting conditional use permit applications for dispensaries and cultivation sites on April 1, 2016.
The City Council has also adopted two related ordinances establishing medical cannabis business licensing requirements in Chapter 5.88 of the Code. The first ordinance established the overall licensing scheme and included regulations specific to dispensaries and cultivation sites. The second ordinance added regulations pertaining to manufacturing and transportation of medical cannabis.
The next step in fulling implementing a regulatory structure to deal with cannabis businesses is this omnibus ordinance. The ordinance was introduced and received first reading on April 27, 2016.
DISCUSSION:
This Zoning Ordinance Amendment 16-002 (ZOA 16-002) further revises the Zoning Ordinance with regard to medical cannabis. ZOA 16-002 amends the Zoning Ordinance to allow medical cannabis “manufacturing sites” to operate in the I-1 Light Industrial district subject to a conditional use permit. Manufacturing sites must be set back at least 600 feet from any school, day-care center or youth center, and 300 feet from any residential zone. These setbacks are the same as are imposed on cultivation sites. A “manufacturing site” is “a location that produces, prepares, propagates, or compounds manufactured medical cannabis or medical cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a licensee for these activities.” Manufacturing sites include sites where raw cannabis is transformed into a concentrate, an edible product, or a topical product (“manufactured medical cannabis”). All manufacturing must occur within an enclosed, locked structure and there must be no evidence that medical cannabis manufacturing is occurring within the structure from the public right-of-way, except for any signage that is approved by the City.
ZOA 16-002 makes several clarifying amendments to the text that was approved in ZOA 16-001. Specifically, ZOA 16-001 allowed cultivation sites to locate in the OS Open Space district with a conditional use permit. However, cultivation of medical cannabis must occur within an “enclosed, locked structure” and the OS district development standards state that “areas within the OS district are to be protected from "extensive building encroachment” and only “necessary amenities, appurtenant structures, or public services” may be constructed in the OS district. ZOA 16-002 adds language to Section 9.42.070 of the Code clarifying that structures to house medical cannabis cultivation are allowed in the OS district. In addition, the definition of “enclosed, locked structure” is revised to specifically allow greenhouses with solid sides and glass roofs.
In addition, after the approval of ZOA 16-001 staff began receiving questions regarding which sites in the City were eligible for medical cannabis businesses and how to measure the setback requirements. In particular, questions arose as to what uses constituted a “youth center” that triggered the 600 foot setback requirement, and whether zones where residential uses were conditionally permitted were considered “residential zones” for the purpose of calculating the 250-300 foot setback from those zones. Also, questions arose as to whether the setback requirements applied to uses and zones outside of the City.
ZOA 16-002 adds definitions of “residential zone” and “youth center” to clarify what uses and districts trigger these setback requirements, and clarifies that the setback measurements stop at the City limits. A residential zone is defined as a zoning district where any residential use other than a “caretaker’s residence” is permitted by right. The exclusion for a caretaker’s residence is necessary because such use is permitted by right in the NBP Neighborhood Business Park zone. There are several zones where residential uses are conditionally permitted, and under this definition they would not be considered residential zones from which medical cannabis businesses must be setback 250-300 feet. The list below indicates which zones are “residential zones” as defined in this ordinance, which zones conditionally allow residential uses, and which zones do not allow residential uses at all (except for a caretaker’s residence). The only zone not listed in the table is the Specific Plan Overlay Zone. If a property has a Specific Plan overlay, the Specific Plan will govern which uses are permitted by right and which are conditionally permitted.
Residential zones (permitted by right): RE, R1. R2, RM, R3, R4, DRN, OS-R
Residential uses conditionally permitted: RR, MXC, CTR
Residential uses prohibited: PPO, PLC, PCC, CBP-1, CBP-2, NBP, I-1, OS, BB
Questions arose regarding whether facilities that are frequented by high volumes of children but do not cater exclusively to children, including parks, would be considered a youth center. ZOA 16-002 defines a “youth center” as “any facility that is operated by a public agency or non-profit entity with the sole purpose of providing educational and/or recreational services to minors.” Under this definition, the Boys and Girls Club would be considered a youth center but public parks and any other facilities that do not cater exclusively to children would not be considered a youth center. In addition, for-profit businesses that cater to children but are not a school or day-care facility would not be considered a youth center. The Planning Commission recommended the adoption of this definition, but they did request that the City Council consider including a setback from parks.
ZOA 16-002 clarifies that in measuring the setback requirements, the measurements stop at the City limits. After some consideration, it was determined that since the City has no control over the zoning of land and the siting of uses outside of its borders that a better approach would be to have flexibility to determine whether a proposed medical cannabis businesses’ location is acceptable when it comes into close proximity with residential or child-centered uses in another jurisdiction. ZOA 16-002 also codifies a provision from the Medical Cannabis Administrative Rules that specifies when a proposed businesses is located in a multi-unit building that the measurements are taken from the suite where the use is located.
ZOA 16-002 also makes numerous non-substantive clean-up revisions to ZOA 16-001. All of the proposed changes are shown in redline format in the Ordinance.
Finally, questions have arisen regarding which medical cannabis businesses should be set back from East Palm Canyon Drive. Currently, dispensaries are required to be at least 250 feet away from East Palm Canyon Drive, but no other medical cannabis businesses have a setback requirement. ZOA 16-002 as approved at first reading will add a new setback requirement that all cannabis business must be located at least 250 feet away from East Palm Canyon. Additionally, Council acted at first reading to clarify the methodology for measuring distances from residential zones. The new language clarifies that dispensaries must be 250 feet from a residential zone as measured to the nearest structure in the zone. If the nearest parcel in the residential zone is vacant the measurement will be to the nearest property line.
FISCAL IMPACT:
A taxing structure is in place as approved by the voters to collect taxes from cannabis businesses.
ATTACHMENTS:
Ordinance