HomeMy WebLinkAbout02-08-2023 PC Agenda Packet
Planning Commission
AGENDA
Wednesday, February 8, 2023, 6:00 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
The City of San Luis Obispo has returned to in-person meetings. Zoom participation will not be
supported. For those attending in-person, City facilities will be at limited capacity and masks are
strongly recommended. Planning Commission meetings can be viewed remotely on Channel 20 and
the City’s YouTube Channel: http://youtube.slo.city
INSTRUCTIONS FOR PUBLIC COMMENT:
Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):
Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990
Palm Street, San Luis Obispo, California, 93401.
Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your
email, please include the date of the meeting and the item number (if applicable). Emails will not
be read aloud during the meeting.
Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the
agenda item number you are calling about, and leave your comment. Verbal comments must be
limited to 3 minutes. Voicemails will not be played during the meeting.
*All correspondence will be archived and distributed to members, however, submissions received
after the deadline will not be processed until the following day.
Public Comment during the meeting:
Meetings have returned to an in-person format. To provide public comment during the meeting,
you must be present in the Council Chambers.
Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy,
Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire
to utilize electronic visual aids to supplement their oral presentation are encouraged to provide
display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the
City Clerk's Office at cityclerk@slocity.org or (805) 781-7114.
Pages
1.CALL TO ORDER
Chair Kahn will call the Regular Meeting of the Planning Commission to order.
2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
At this time, people may address the Commission about items not on the
agenda. Comments are limited to three minutes per person. Items raised at this
time are generally referred to staff and, if action by the Commission is
necessary, may be scheduled for a future meeting.
3.CONSENT
Matters appearing on the Consent Calendar are expected to be non-
controversial and will be acted upon at one time. A member of the public may
request the Planning Commission to pull an item for discussion. The public may
comment on any and all items on the Consent Agenda within the three-minute
time limit.
3.a CONSIDERATION OF MINUTES - JANUARY 25, 2023 PLANNING
COMMISSION MINUTES
5
Recommendation:
To approve the Planning Commission Minutes of January 25, 2023.
4.PUBLIC HEARINGS
Note: Any court challenge to the action taken on public hearing items on this
agenda may be limited to considering only those issues raised at the public
hearing or in written correspondence delivered to the City of San Luis Obispo at,
or prior to, the public hearing. If you wish to speak, please give your name and
address for the record. Please limit your comments to three minutes; consultant
and project presentations limited to six minutes.
4.a REVIEW PROPOSED AMENDMENTS TO THE MUNICIPAL CODE
MODIFYING RULES FOR CANNABIS BUSINESS RETAIL
STOREFRONT OPERATIONS AND REVIEW OF EXPANSION OF
THE CANNABIS BUSINESS OVERLAY ZONES TO INCLUDE THE
RECENTLY ANNEXED EAST AIRPORT AREA
9
Recommendation:
Adopt a Resolution recommending the City Council introduce and
approve Ordinances to amend the Municipal Code modifying specific
rules for commercial cannabis retail storefront operations and to expand
the Cannabis Business Overlay Zones to include recently annexed
areas east of Broad Street in the Airport Area Specific Plan.
5.COMMENT AND DISCUSSION
5.a STAFF UPDATES AND AGENDA FORECAST
Receive a brief update from Deputy Community Development Director
Tyler Corey.
6.ADJOURNMENT
The next Regular Meeting of the Planning Commission is scheduled for
February 22, 2023 at 6:00 p.m. in the Council Chambers at City Hall, 990 Palm
Street, San Luis Obispo.
LISTENING ASSISTIVE DEVICES for the hearing impaired--see the Clerk
The City of San Luis Obispo wishes to make all of its public meetings accessible
to the public. Upon request, this agenda will be made available in appropriate
alternative formats to persons with disabilities. Any person with a disability who
requires a modification or accommodation in order to participate in a meeting
should direct such request to the City Clerk’s Office at (805) 781-7114 at least
48 hours before the meeting, if possible. Telecommunications Device for the
Deaf (805) 781-7410.
Planning Commission meetings are televised live on Charter Channel 20 and on
the City's YouTube Channel: http://youtube.slo.city. Agenda related writings or
documents provided to the Planning Commission are available for public
inspection on the City’s website: https://www.slocity.org/government/mayor-and-
city-council/agendas-and-minutes.
1
Planning Commission Minutes
January 25, 2023, 6:00 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
Planning
Commissioners
Present:
Commissioner Justin Cooley, Commissioner Dave Houghton,
Commissioner Bob Jorgensen, Commissioner Juan Munoz-
Morris, Vice Chair Michael Hopkins, Chair Steve Kahn
(one vacant seat)
City Staff Present: Community Development Director Michael Codron, Deputy
Community Development Director Tyler Corey, Deputy City
Attorney Sadie Symens, Megan Wilbanks, Deputy City Clerk
_____________________________________________________________________
1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Planning Commission was called to
order on January 25, 2023 at 6:00 p.m. in the Council Chambers at City Hall , 990
Palm Street, San Luis Obispo, by Chair Kahn.
2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public Comment:
None
--End of Public Comment--
3. CONSENT
3.a CONSIDERATION OF MINUTES - DECEMBER 14, 2022 PLANNING
COMMISSION MINUTES
Motion By Commissioner Munoz-Morris
Second By Commissioner Cooley
To approve the Planning Commission Minutes of December 14, 2022.
Ayes (6): Commissioner Cooley, Commissioner Houghton, Commissioner
Jorgensen, Commissioner Munoz-Morris, Vice Chair Hopkins, and Chair
Kahn (one vacant seat)
CARRIED (6 to 0)
Page 5 of 35
2
4. PUBLIC HEARINGS
4.a 841 PATRICIA (ARCH-0040-2021) REVIEW OF CONSTRUCTION OF A
SINGLE-FAMILY DWELLING, ACCESSORY DWELLING UNIT, AND
ACCESS BRIDGE, WITH REQUEST FOR AN EXCEPTION FROM
REQUIRED CREEK SETBACK, AND CONSIDERATION OF A
MITIGATED NEGATIVE DECLARATION
Assistant Planner Walter Oetzell presented the staff report and responded
to Commission inquiries.
Commissioner Houghton and Chair Kahn provided an ex-parte
announcement and reported that they visited the project site and were
allowed access by the project's representative, Carol Florence; they
walked the site and did not discuss project specifics.
Applicant representatives, Carol Florence, Oasis Associates, Inc.; David
Wolf, David Wolf Environmental; and Ediberto ‘Eddie’ Herrera, RRM
Project Designer, provided an overview of the project and responded to
questions raised.
Chair Kahn opened the Public Hearing
Public Comments:
Rev. Edward Holterhoff
Elizabeth [no last name given]
Victoria Frydenlund
Kathy apRoberts
James apRoberts
Jud Clark
Donny Vallien
Susan Farrington
Robert Schroeter
--End of Public Comment--
Chair Kahn closed the Public Hearing
Page 6 of 35
3
Motion By Commissioner Jorgensen
Second By Vice Chair Hopkins
Adopt a Resolution denying the application, based on the project’s
inconsistency with General Plan Policies for protection of natural
resources, Creek Setback provisions specific to criteria for discretionary
exception in Section 17.70.030(G)(4)(c), and Community Design
Guidelines for Creekside Development.
"A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
SAN LUIS OBISPO, CALIFORNIA, DENYING THE CONSTRUCTION OF
A SINGLE-FAMILY DWELLING, ACCESSORY DWELLING UNIT, AND
ACCESS BRIDGE, AND DENYING A REQUEST FOR AN EXCEPTION
FROM THE REQUIRED CREEK SETBACK, AS REPRESENTED IN THE
STAFF REPORT AND ATTACHMENTS DATED JANUARY 25, 2023 (841
PATRICIA DRIVE, ARCH-0040-2021)"
Ayes (6): Commissioner Cooley, Commissioner Houghton, Commissioner
Jorgensen, Commissioner Munoz-Morris, Vice Chair Hopkins, and Chair
Kahn (one vacant seat)
CARRIED (6 to 0)
5. COMMENT AND DISCUSSION
5.a STAFF UPDATES AND AGENDA FORECAST
Deputy Community Development Director Tyler Corey provided the following
update:
On February 8, 2023, Commissioners will review Municipal Code and
Zoning amendments for the City’s Cannabis Business Program and
make recommendations to the City Council for final approval.
On February 22, 2023, Commissioners will review Flexible Density
Ordinance updates and make recommendations to the City Council for
final approval.
The Institute for Local Government will be hosting a free virtual Planning
Commissioner training on February 17th. The training will cover topics
such as the role of a planning commission, how to work effectively with
staff and the governing board, effective community engagement, CEQA
basics and local planning challenges and opportunities.
Page 7 of 35
4
The 2023 Planning Commissioners Academy, hosted by the League of
California Cities, will be held March 29 – 31 in Garden Grove, CA;
Commissioner Munoz-Morris expressed interest in attending.
6. ADJOURNMENT
The meeting was adjourned at 8:19 p.m. The next Regular Meeting of the
Planning Commission is scheduled for February 8, 2023 at 6:00 p.m. in the
Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY PLANNING COMMISSION: XX/XX/2023
Page 8 of 35
PLANNING COMMISSION AGENDA REPORT
SUBJECT: REVIEW PROPOSED AMENDMENTS TO THE MUNICIPAL CODE
MODIFYING RULES FOR CANNABIS BUSINESS RETAIL STOREFRONT
OPERATIONS AND REVIEW OF EXPANSION OF THE CANNABIS BUSINESS
OVERLAY ZONES TO INCLUDE THE RECENTLY ANNEXED EAST AIRPORT AREA
BY: Alex Fuchs, Cannabis Business Coordinator FROM: Tyler Corey, Deputy Director
Phone Number: 805-783-7877 Phone Number: 805-781-7169
Email: afuchs@slocity.org Email: tcorey@slocity.org
APPLICANT: City of San Luis Obispo REPRESENTATIVE: Alex Fuchs
RECOMMENDATION
Adopt a resolution recommending the City Council introduce and approve Ordinances to
amend the Municipal Code modifying specific rules for commercial cannabis retail
storefront operations and to expand the Cannabis Business Overlay Zones to include
recently annexed areas east of Broad Street in the Airport Area Specific Plan .
1.0 COMMISSION'S PURVIEW
Review the recommended amendments to the Municipal Code and the expansion of the
Cannabis Business Overlay Zones and make a recommendation to City Council for the
introduction and adoption of Ordinances for the proposed changes to the City’s Cannabis
Business Program.
2.0 SUMMARY
The City Council has directed staff to return annually with an update on the City’s
Cannabis Business Program. The annual update is an opportunity for staff to recommend
policy and regulatory changes to improve the commercial cannabis application and
operational processes. It is also an opportunity for existing cannabis businesses to
request changes based on their experiences operating in the City.
The next annual Cannabis Business Program update is scheduled before City Council on
March 7, 2023. Staff will present, for Council’s consideration, proposed amendments to
Chapter 17.86 and Chapter 9.10 of the Municipal Code to modify certain rules for
commercial cannabis retail storefront operations. The proposed amendments are a
follow-up to Council direction provided at the last annual Cannabis Business Program
update in October 2022.
Staff will also present a proposed expansion to the Cannabis Business Overlay Zones to
include a recently annexed area east of the airport along Broad Street. The intent is to
expand the opportunities for cannabis businesses to be permitted in appropriately zoned
areas of the City.
Meeting Date: 2/8/2023
Item Number: 4a
Time Estimate: 60 Minutes
Page 9 of 35
Item 4a
CODE-0046-2023
Planning Commission Report – February 8, 2023
Both items require changes to the City’s Zoning Regulations and the Zoning Map which
fall under the purview of the Planning Commission. This report presents the background
and justification for the proposed amendments and recommendation to adopt a
Resolution (Attachment A) recommending Council introduce and adopt Ordinances
(Exhibit A and Exhibit B to the Resolution) approving the proposed amendments.
3.0 PREVIOUS REVIEW
At the last annual Cannabis Business Program update in October 2022, Council provided
direction to further evaluate and return with recommended amendments to cannabis retail
storefront policies including the expansion of retail storefront operational hours, allowance
of medical cannabis users aged 18-20 to access retail storefronts, and to allow retail
storefronts to also include delivery operations.
4.0 PROJECT ANALYSIS
The next annual Cannabis Business Program update on March 7, 2023, consists of five
parts: 1) review of operator permit changes; 2) tax revenue forecast updates; 3)
recommendation to expand the Cannabis Business Overlay Zones; 4) recommendations
to modify the requirements for retail storefront operations described above; and 5)
recommendation to update the merit criteria and application evaluation process. The merit
criteria and evaluation process updates do not fall under the purview of the Planning
Commission but are mentioned in the report for context and transparency purposes.
4.1 Expansion of the Cannabis Business Overlay Zones
In September 2018, City Council approved the establishment of the Cannabis Business
Overlay Zones (CBZs) consisting of seven separate designated areas where commercial
cannabis activities may be permitted. For reference, Attachment B is a map of the City
showing all the CBZs in green. The CBZs contain an appropriate mixture of zoning types
for commercial cannabis activities; separation from sensitive land uses like schools,
daycare facilities, and public parks; and properties fronting an arterial street required for
retail storefront operations. Staff periodically evaluates areas of the City that may be
suitable to permit commercial cannabis activities.
In March 2020, City Council approved the annexation of what is referred to in the Airport
Area Specific Plan (AASP) as the East Airport Area. The East Airport Area is made up of
33 parcels (23 of which are developed), 58.31 acres of land, is within the AASP, and is
zoned Service Commercial (C-S) throughout. The area is on the east side of Broad Street,
bounded by Farmhouse Lane and Kendall Road, including Allene Way, Morabito Place,
and Prospect Street. Figure 1 is zoning map showing the boundaries and streets that
make up the East Airport Area.
When the CBZs were initially developed, staff considered areas of the city with land use
types that are appropriate for cannabis operations, are free of sensitive uses, and have
properties that front an arterial street. The East Airport Area is consistent with the se
Page 10 of 35
Item 4a
CODE-0046-2023
Planning Commission Report – February 8, 2023
considerations used to develop and establish the initial Cannabis Business Zones and
represents an opportunity to provide more locations where cannabis activities may occur.
Figure 1. East Airport Area
4.2 Requested Changes to Cannabis Retail Storefront Operations
Staff has received direction from Council to evaluate changes to three specific retail
storefront operational policies. The requested changes include: 1) extending hours of
operation; 2) allowing medical cannabis users aged 18-20 to access storefronts; 3) and
allowing storefronts to also deliver. In October 2022, staff presented the requested
changes to City Council with the annual Cannabis Business Program update. Council
provided direction to further evaluate and return with recommendations for their
consideration.
4.2.1 Extend Storefront Operating Hours
Existing storefront retailers are requesting extension of the operating hours from 9:00am
- 8:00pm to 7:00am - 9:00pm. The City currently has the most restrictive retail storefront
hours of operations based on an analysis of other cities throughout California as shown
in Table 1 below. The requested change in operating hours is within the City’s authority
since the State of California allows all permitted cannabis businesses to operate between
6:00am – 10:00pm, daily.
Extending the retail storefront operating hours increases access to cannabis and
cannabis products for recreational users and allows operators to better serve the
community. Extending the operating hours is also anticipated to result in an increase in
tax revenue generation.
Page 11 of 35
Item 4a
CODE-0046-2023
Planning Commission Report – February 8, 2023
4.2.2 Allow Medical Cannabis User Aged 18-20 to Access Storefronts
The City’s cannabis regulations only allow delivery to medical cannabis users aged 18-
20 but does not allow those users to access retail storefronts. The requested change is
within the City’s authority since the State of California allows adults aged 21+ and medical
cannabis users aged 18+ with a valid physician’s recommendation to purchase cannabis
in retail storefronts. The City is the only agency that does not allow medical users aged
18-20 to access storefronts when compared to the other cities as shown in Table 1 below.
Access is dependent upon the type of state license held by the retailer which would be
verified by the City before approving such change, if approved by Council. The City’s
current regulations restrict the ability of medicinal cannabis patients aged 18 -20 to obtain
medicine from businesses within the City that may be deemed necessary for certain
individuals by a licensed physician.
4.2.3 Allow Storefronts to Also Deliver
The current administrative regulations prohibit storefronts from also operating a delivery
service in the City. Again, the requested change is within the City’s authority, since the
State of California allows a business to conduct both types of operations. The City is only
agency shown in Table 1 that does not allow retail storefronts to also deliver. If approved
by Council, the administrative regulations for the Cannabis Business Program would be
updated via City Manager report to explicitly allow retail storefront operators to engage in
delivery services. The City of Morro Bay and the City of Grover Beach who also have
retail storefront operations allow storefronts to also engage in delivery services.
Under state law, the City cannot restrict retailers licensed in other jurisdictions from
delivering to customers within the City. There are about a dozen delivery services located
outside City limits that are licensed to deliver within the City. Staff anticipates that allowing
existing retail storefronts to also deliver will reduce the number of outside delivery
services operating in the City. Because of this, there will likely be minimal increase in tax
revenue if approved. However, if approved, existing operators may opt to open delivery-
specific locations in the City under a separate operating permit which would increase one -
time application fee revenue and on -going permit renewal fees. Application fees are
$26,699 and permit renewal fees are $44,310 for the 2022 -23 fiscal year.
4.2.4 Outreach for Requested Operational Changes
Staff conducted outreach to Cal Poly, Cal Poly’s Associated Students, Inc. (ASI), Cuesta
College, existing cannabis operators, and the City’s Police Department as part of the
evaluation. As a public institution, Cal Poly will not be taking a position. ASI also stated
they will not take an official position on the operational changes. Staff did not receive a
response back from Cuesta College.
The existing cannabis operators that did provide comment are supportive of the requested
changes and are interested in continuing their operations within the City. The Police
Department, initially, expressed concerns with verification and enforcement of allowing
medical cannabis users aged 18-20 to access retail storefronts. But, after review of the
State of California’s Department of Cannabis Control’s Code of Regulations for retail
customers, the Police are supportive of the three requested changes. If approved, any
Page 12 of 35
Item 4a
CODE-0046-2023
Planning Commission Report – February 8, 2023
code violations found during the quarterly compliance inspections or reported to the City
would be subject to disciplinary action including revocation of operator permits.
Staff also reached out HdL Companies (HdL) who provides contracted consulting
services to the City for commercial cannabis operations about the direction provided to
evaluate the proposed changes. HdL has extensive experience assisting local agencies
with developing, implementing, and administering cannabis programs throughout
California. From their experience, most cities align their policies with state regulations
established by the Department of Cannabis Control and opt not to establish more
restrictive local policies.
4.2.5 Comparative Agency Analysis
Staff reviewed the cannabis regulations for nine other cities used in the past to compare
and recommend changes to the City’s Cannabis Business Program. Of the nine other
agencies, the City has the most restrictive hours of operation, is the only city that does
not allow 18-20 medical cannabis users to access storefronts, and is the only city that
does not allow storefronts to also deliver.
Table 1. Comparison of Retail Storefront Operational Policies
4.2.5 Recommended Actions for the Proposed Changes
Based on the feedback received, authority provided by state regulations to local agencies,
and the comparative agency analysis; staff recommends amending the City’s Municipal
Code and updating the cannabis administrative regulations to implement the proposed
changes. The hours of operation and the age limitation for entry into retail storefronts are
detailed in both Chapter 9.10 (Cannabis Regulations) and Chapter 17.86 (Regulations for
the Specific Land Uses and Activities) of the Municipal Code. Allowing retail storefronts
to also deliver is an administrative regulation that would be updated internally.
Page 13 of 35
Item 4a
CODE-0046-2023
Planning Commission Report – February 8, 2023
5.0 ENVIRONMENTAL REVIEW
The recommended actions were reviewed in accordance with the California
Environmental Quality Act (CEQA) Guidelines. The recommended actions are
determined to be exempt from environmental review pursuant to the General Rule (CEQA
Guidelines Section 15061(b)(3), which exempts activities that can be seen with certainty
to have no possibility for causing a significant effect on the environment.
The expansion of the Cannabis Business Overlay Zones will not have a significant
physical effect on the environment because the inclusion of a portion of the Airport Area
Specific Plan east of Broad Street does not alter the development standards for those
land use types. The proposed amendments to Chapter 17.86 and Chapter 9.10 of the
Municipal Code constitute minor modifications to the rules governing commercial
cannabis business retail storefront operations and do not have a significant effect on the
environment.
Project specific environmental review will be required for any new commercial cannabis
operation. Any new or existing retailer applying for a delivery permit would be required to
comply with all applicable state and local law, including a showing of CEQA compliance
or exemption.
6.0 OTHER DEPARTMENT COMMENTS
City staff convened a steering committee comprised of representatives from the City
Attorney’s office, Police Department, Finance Department, Community Development
Department, and City Administration. The steering committee reviewed the proposed
changes to the Cannabis Business Program and support the recommendations in this
report.
7.0 ALTERNATIVES
1. Recommend the City Council not adopt recommended Municipal Code
Amendments and CBZ designation in the East Airport Area. This is not
recommended as it does not align with the City Council’s overall cannabis goal to
obtain and retain qualified cannabis business operators in the City.
2. Modify the Recommendation. The Planning Commission may modify the
recommended action.
8.0 ATTACHMENTS
A – Draft Resolution Recommending Council Action on Updates to the City’s Cannabis
Business Program
B – Cannabis Business Zones Map
Page 14 of 35
R ______
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
SAN LUIS OBISPO, CALIFORNIA, RECOMMENDING THE CITY
COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING
CHAPTER 17.86 AND CHAPTER 9.10 OF THE MUNICIPAL CODE
MODIFYING SPECIFIC RULES FOR COMMERCIAL CANNABIS
BUSINESS RETAIL STOREFRONTS AND INTRODUCE AND ADOPT AN
ORDINANCE AMENDING THE ZONING MAP TO EXPAND THE
CANNABIS BUSINESS OVERLAY ZONES (CODE-0046-2023)
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo,
California on February 8, 2023, for the purpose of reviewing and making
recommendations to the City Council of San Luis Obispo to amend the Municipal Code
modifying specific rules for commercial cannabis business retail storefront operations and
to amend the Zoning Map for the Cannabis Business Overlay Zones; and
WHEREAS, notices of said public hearing were made at the time and in the
manner as required by law; and
WHEREAS, the Planning Commission has duly considered all evidence presented
by City staff and public commentors at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence presented, the Planning
Commission makes the following findings:
1. The amendments to Chapter 17.86 and Chapter 9.10 of the Municipal Code
modifying specific rules for commercial cannabis business retail storefronts are
consistent with State of California’s Department of Cannabis Control
regulations.
2. The amendments to Chapter 17.86 and Chapter 9.10 of the Municipal Code
modifying specific rules for commercial cannabis business retail storefronts
establish reasonable regulations for the operation of commercial cannabis
retail storefront businesses in the City.
3. The amendment to the City’s Zoning Map expanding the Cannabis Business
Overlay Zones to include the East Airport Area intends to provide more
locations that may be appropriate for commercial cannabis activities to occur,
as detailed in Chapter 17.86 and Chapter 9.10 of the Municipal Code.
Page 15 of 35
Resolution No. _____ (2023 Series) Page 2
R ______
4. The City requires discretionary review and approval of permits, licenses, and
other authorizations necessary to engage in commercial cannabis activity.
Such review and approval include applicable environmental review.
SECTION 2. Environmental Review. The recommended actions were reviewed in
accordance with the California Environmental Quality Act (CEQA) Guidelines. The
recommended actions are determined to be exempt from environmental review pursuant
to CEQA Guidelines Section 15061(b)(3), the General Rule exemption which exempts
activities that can be seen with certainty to have no possibility for causing a significant
effect on the environment. The expansion of the Cannabis Business Overlay Zones will
not have a significant effect on the environment because the inclusion of the East Airport
Area does not alter the development standards for those land use types. The proposed
amendments to Chapter 17.86 and Chapter 9.10 of the Municipal Code constitute minor
modifications to the rules governing commercial cannabis business retail storefront
operations and do not have a significant effect on the environment. Project specific
environmental review will be required for any new commercial cannabis operation located
within the East Airport Annexation Area and for any new commercial cannabis delivery
applications approved by the City as part of the City’s existing permitting processes.
SECTION 3. Recommended actions. The Planning Commission does hereby
recommend the City Council:
1. Introduce and adopt an Ordinance amending Chapter 17.86 and Chapter 9.10
of the Municipal Code modifying specific rules for commercial cannabis
business retail storefront operations as shown in Exhibit A; and
2. Introduce and adopt an Ordinance amending the Zoning Map to expand the
Cannabis Business Overlay Zones to include the East Airport Area as shown
in Exhibit B.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 8th day of February, 2023.
___________________________
Tyler Corey, Secretary
Planning Commission
Page 16 of 35
Resolution No. _____ (2023 Series) Page 3
R ______
EXHIBIT A
ORDINANCE NO. _____ (2023 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING CHAPTER 17.86 (REGULATIONS
FOR SPECIFIC LAND USES AND ACTIVITES) AND CHAPTER 9.10
(CANNABIS REGULATIONS) OF THE MUNICIPAL CODE MODIFYING
SPECIFIC RULES FOR COMMERCIAL CANNABIS BUSINESS RETAIL
STOREFRONT OPERATIONS
WHEREAS, on May 1, 2018, the City Council of the City of San Luis Obispo
adopted regulations allowing for the operation of commercial cannabis businesses and
personal cultivation in the City; and
WHEREAS, Municipal Code Chapter 17.86 and Chapter 9.10 establishes the
hours of operations and the age restrictions for access to commercial cannabis retail
storefronts operating in the City; and
WHEREAS, the City currently has two permitted commercial cannabis retail
storefronts operating in the City; and
WHEREAS, the permitted commercial cannabis retail storefronts requested the
City expand the hours of operations from 9:00 a.m. and 8:00 p.m., daily to 7:00 a.m. and
9:00 p.m., daily; and to allow individuals 18 to 20 years of age who have a valid
physician’s recommendation for medicinal cannabis to access retail storefronts; and
WHEREAS, on October 18, 2022, City Council directed staff to further evaluate
and return with recommendations addressing requests to modify the regulations for hours
of operations and access restrictions for medicinal cannabis customers 18 to 20 years of
age; and
WHEREAS, the State of California’s Department of Cannabis Control’s Code of
Regulations allows licensed cannabis retailers and delivery businesses to operate
between the hours of 6:00 a.m. and 10:00 p.m. and allows licensed cannabis retailers
who possess either an M-designation license or and A- and M-designation license to sell
medicinal cannabis goods to individuals who are at least 18 years of age and who
possess a valid physician’s recommendation; and
WHEREAS, City staff conducted extensive public outreach for the requested
changes submitted by the permitted commercial cannabis retail storefronts; and
WHEREAS, consistent with State of California regulations and the feedback
collected during the public outreach component of the requested changes evaluation, the
City desires to in continue to support existing and future commercial cannabis retail
storefront operations by amending Chapter 17.86 and Chapter 9.10 of the Municipal
Code; and
Page 17 of 35
Resolution No. _____ (2023 Series) Page 4
R ______
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, on February 8, 2023, for the purpose of considering updates to the City’s
commercial cannabis program including amending Chapter 17.86 and Chapter 9.10 of
the Municipal Code for retail storefront operations and making recommendations to the
City Council regarding such amendments.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence presented, the Council makes
the following findings.
1. The proposed amendments to Chapter 17.86 and Chapter 9.10 are
consistent with State of California’s Department of Cannabis Control
regulations.
2. The proposed amendments establish reasonable regulations for the
operation of commercial cannabis retail storefront businesses in the City.
3. The proposed amendments continue to promote the public health, safety,
and welfare of the City as they relate to commercial cannabis business
operations.
4. The City requires discretionary review and approval of permits, licenses,
and other authorizations necessary to engage in commercial cannabis
activity. Such review and approval include applicable environmental review.
SECTION 2. Section 17.86.080 (E)(10), Retail—Storefront, of the San Luis
Obispo Municipal Code is hereby amended as follows:
10. Retail—Storefront.
a. Commercial cannabis storefront retail may be conditionally permitted, subject
to the requirements of this section and the obtaining and maintaining of a
commercial cannabis operator permit, and the appropriate state license, in the
following zones:
i. Retail commercial (C-R);
ii. Service commercial (C-S);
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
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ii. Only three retail storefronts, which must front arterial streets, will be
allowed within the city. Selection of the retail commercial cannabis operator
will be selected from qualified commercial cannabis operators as set forth
in Chapter 9.10, Cannabis Regulations. One of the retail storefronts shall
have a medicinal license and may also have an adult use license.
iii. Retail storefronts shall be located at least one thousand feet from any
preschool, elementary school, junior high school, high school, public park
or playground, six hundred feet from any licensed day care cen ter, and
three hundred feet from any residentially zoned area. Youth centers do not
require a buffer. Distance shall be measured from the nearest point of the
property line to the nearest point of the property line of the enumerated use
using a direct straight-line measurement.
iv. Retail storefronts must be separated from each other by at least one
thousand feet.
v. Hours of operation shall be limited between nine seven a.m. to eight nine
p.m.
vi. Retail storefronts that possess a valid State of California cannabis
retailer license with an A-designation mMust include a sign at each entrance
of a retail storefront that prohibits persons under twenty-one years of age
from entering. Retail storefronts that possess a valid State of California
cannabis retailer license with an M-designation or both an A-designation
and an M-designation must include a sign at each entrance of the retail
storefront that prohibits persons under twenty-one years of age from
entering unless the person is at least eighteen years of age and is also in
possession of a valid physician’s recommendation for medicinal cannabis.
SECTION 3. Section 9.10.230, Minors, of the San Luis Obispo Municipal Code is
hereby amended as follows:
A. Minors shall not be allowed on the premises of a commercial cannabis business
having either an “A” or “M” license, or both, even if accompanied by a parent or
guardian.
B. No person under twenty-one years of age shall be allowed on the premises of
a commercial cannabis business having either an “A” or “M” license or both.
C. No person under twenty-one years of age shall be allowed on the premises of
a commercial cannabis business having either an “M” license or both an “A” and
“M” license unless the person is at least eighteen years of age and possesses a
valid physician’s recommendation for medicinal cannabis.
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C. D. Every entrance to an “A” or “M” licensed commercial cannabis business shall
be clearly and legibly posted with the following notice: “ENTRY ONTO THESE
PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY
LAW. VALID PHOTO ID REQUIRED.” Each letter of the notice must be at least
two inches high and clearly visible.
E. Every entrance to an “M” licensed or both an “A” and “M” licensed commercial
cannabis business shall be clearly and legibly posted with the following notice:
“ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE
IS PROBIHITED BY LAW UNLESS THE PERSON IS EIGHTEEN YEARS OF
AGE OR OLDER AND POSSESSES A VALID PHYSICIAN’S
RECOMMENDAITON FOR MEDICINAL CANNABIS. VALID PHOTO ID
REQUIRED.” Each letter of the notice must be at least two inches high and clearly
visible.
D. F. No person, business, or other entity conducting a commercial cannabis
activity with either an “A” or “M” state license shall employ any person who is not
at least twenty-one years of age. (Ord. 1647 § 4 (Exh. A (part)), 2018)
SECTION 4. Section 9.10.250 (C), Security and public safety measures, of the
San Luis Obispo Municipal Code is hereby amended as follows:
C. Hours of Operation.
1. Retail Storefront. Retail storefront commercial cannabis business shall not
operate between the hours of eight nine p.m. and nine seven a.m.
2. Retail Non-Storefront (Delivery Services). Retail non-storefront (delivery
services) commercial cannabis business shall not operate between the hours
of ten p.m. and six a.m.
3. Commercial Other than Retail. All commercial cannabis activity other than
retail is prohibited between the hours of ten p.m. and seven a.m. (Ord. 1647
§ 4 (Exh. A (part)), 2018)
SECTION 5. Environmental Review. The proposed amendments to Chapter 17.86
and Chapter 9.10 of the Municipal Code was reviewed in accordance with the California
Environmental Quality Act (CEQA) Guidelines. The proposed amendments are
determined to be exempt from environmental review purs uant to CEQA Guidelines
Section 15061(b)(3), the General Rule exemption which exempts activities that can be
seen with certainty to have no possibility for causing a significant effect on the
environment. The proposed amendments constitute minor modifications to the rules
governing commercial cannabis business retail storefront operations and do not have a
significant effect on the environment. Any new the retailer-applicant would be required to
comply with all applicable state and local law, including a showing of CEQA compliance
or exemption.
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SECTION 6. Action. The City Council hereby adopts an ordinance amending
Chapter 17.86 and Chapter 9.10 of the Municipal Code modifying the hours of operations
and access requirements for commercial cannabis retail st orefronts.
SECTION 7. Ordinance Number 1647 (2018 Series) is hereby amended and
superseded to the extent inconsistent herewith.
SECTION 8. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalid or unenforceability shall not affect the validity or
enforcement of the remaining provisions of this Ordinance, or any other provisions of the
City’s rules and regulations. It is the City’s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
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SECTION 9. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of _____ 2023, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 202 3, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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EXHIBIT B
ORDINANCE NO. _____ (2023 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE CITY’S ZONING MAP TO
EXPAND THE CANNABIS BUSINESS OVERLAY ZONES WHERE
CANNABIS BUSINESSES MAY BE LOCATED AS MAY BE ALLOWED
OR CONDITIONALLY ALLOWED BY THE UNDERLYING BASE ZONE
AND THE RULES AND REGULATIONS ESTABLISHED IN THE CITY’S
MUNICIPAL CODE.
WHEREAS, on September 18, 2018, the City Council of San Luis Obispo
amended the zoning map and designated areas of the City as Cannabis Business Overlay
Zones where commercial cannabis activities may be located and allowed or conditionally
allowed by the underlying base zone; and
WHEREAS, on March 7, 2020, the City Council of the City of San Luis Obispo
approved the annexation of the East Airport Annexation Area Properties (East Airport
Commerce Park Association, Senn-Glick) to the City of San Luis Obispo; and
WHEREAS, overlay zones supplement the base zone and are used to establish
special use or development regulations for a particular area in addition to the provisions
of the underlying base zone; and
WHEREAS, the expansion of the Cannabis Business Overlay Zones to include the
East Airport Annexation Area provides more locations that may be appropriate for a
variety of commercial cannabis activities to occur in the City; and
WHEREAS, the location of commercial cannabis activities within the East Airport
Annexation Area are subject to issuance of a land use permit, which is a process that
provides notification for neighboring property owners, businesses, and residents; and
ensures compatibility of uses through the imposition of conditions of approval; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing on February 8, 2023 in the Council Chamber of City Hall, 990 Palm Street,
San Luis Obispo, California, for the purpose of considering amending the zoning map to
expand the Cannabis Business Overlay Zones and making a recommendation to the City
Council regarding such an amendment.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Finding. The expansion of the Cannabis Business Overlay Zones
intends to provide more locations that may be appropriate for commercial cannabis
activities to occur, as detailed in Chapter 9.10 and Chapter 17.86 of the C ity’s Municipal
Code.
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SECTION 2. Environmental Review. The proposed expansion of the Cannabis
Business Overlay Zones to include the East Airport Annexation Area was reviewed in
accordance with the California Environmental Quality Act (CEQA) Guidelines. The
proposed expansion is determined to be exempt from environmental review pursuant to
CEQA Guidelines Section 15061(b)(3), the General Rule exemption which exempts
activities that can be seen with certainty to have no possibility for causing a significant
physical effect on the environment. The expansion of t he Cannabis Business Overlay
Zones will not have a significant physical effect on the environment because the inclusion
of the East Airport Area does not alter the development standards for those land use
types. Project specific environmental review will b e required for any new commercial
cannabis operation located within the East Airport Area as part of the City’s existing
permitting processes.
SECTION 3. Action. The City Council hereby adopts an ordinance amending the
City’s Zoning Map designating properties that will be included in the Cannabis Business
Overlay Zones in eight separate areas of the City as depicted in Exhibit A which is
incorporated herein by reference.
SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalid or unenforceability shall not affect the validity or
enforcement of the remaining provisions of this Ordinance, or any other provi sions of the
City’s rules and regulations. It is the City’s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
SECTION 4. Ordinance Number 1653 (2018 Series) is hereby amended and
superseded to the extent inconsistent herewith.
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SECTION 5. A summary of this ordinance, together with the names of the Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ___ day of ______, 2023, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ______, 2023, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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