HomeMy WebLinkAboutPC-1069-2023 (CODE-0046-2023 -- Citywide)
RESOLUTION NO. PC-1069-2023
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.
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 2
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.
On motion by Commissioner Cooley, seconded by Commissioner Munoz-Morris,
and on the following roll call vote:
AYES: Commissioners Cooley, Houghton, Jorgensen, Munoz-Morris and
Chair Kahn
NOES: None
REFRAIN: None
ABSENT: Vice Chair Hopkins
The foregoing resolution was adopted this 8th day of February, 2023.
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 3
_________________________
Brian Leveille, Secretary
Planning Commission
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 4
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
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 5
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.
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 6
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 center, 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.
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 7
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 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 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.
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 8
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 storefronts.
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.
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 ____, 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
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 9
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
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 10
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 City’s Municipal
Code.
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 11
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 the 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 be 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 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.
SECTION 4. Ordinance Number 1653 (2018 Series) is hereby amended and
superseded to the extent inconsistent herewith.
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
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 12
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
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 14
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 15
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 16
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 17
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 18
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 19
Resolution No. PC-1069-23
Citywide, CODE-0046-2023
Page 20