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HomeMy WebLinkAbout08-14-2024 PC Agenda Packet Planning Commission AGENDA Wednesday, August 14, 2024, 6:00 p.m. Council Chambers, 990 Palm Street, San Luis Obispo Planning Commission meetings can be viewed remotely on Channel 20, the City’s YouTube Channel, and on the City’s website under the Public Meeting Agendas web page. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details. 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 may not be processed until the following day. Public Comment during the meeting: Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location. 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 must 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 Cooley 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 - JUNE 26, 2024 PLANNING COMMISSION MINUTES 5 Recommendation: To approve the Planning Commission Minutes of June 26, 2024. 4.PUBLIC HEARING 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 OF TEXT AMENDMENTS TO TABLE 2-1 OF THE ZONING REGULATIONS TO ALLOW CANNABIS RETAIL STOREFRONTS TO CONDUCT RETAIL SALES BY DELIVERY WITH APPROVAL OF A CONDITIONAL USE PERMIT OR BY AMENDMENT TO AN EXISTING CONDITIONAL USE PERMIT (CODE-0401-2024) 9 Recommendation: Recommend the City Council introduce and adopt an Ordinance amending Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code to allow cannabis retail storefronts to conduct retail sales by delivery with the approval of a Conditional Use Permit, or by amendment to an existing Conditional Use Permit. 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 August 28, 2024 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: www.youtube.com/CityofSanLuisObispo. 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 June 26, 2024, 6:00 p.m. Council Chambers, 990 Palm Street, San Luis Obispo Planning Commissioners Present: Commissioner Sheryl Flores, Vice Chair Dave Houghton, Commissioner Bob Jorgensen, Commissioner Steve Kahn, Commissioner Eric Tolle, Chair Justin Cooley, Commissioner Juan Munoz-Morris City Staff Present: Assistant City Attorney Markie Kersten, Senior Planner Rachel Cohen, City Clerk Teresa Purrington _____________________________________________________________________ 1. CALL TO ORDER A Regular Meeting of the San Luis Obispo Planning Commission was called to order on June 26, 2024 at 6:00 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo, by Chair Cooley. 2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA Public Comment: None --End of Public Comment-- 3. CONSENT 3.a CONSIDERATION OF MINUTES - JUNE 12, 2024 PLANNING COMMISSION MINUTES Motion By Commissioner Munoz-Morris Second By Commissioner Flores To approve the Planning Commission Minutes of June 12, 2024. Ayes (7): Commissioner Flores, Vice Chair Houghton, Commissioner Jorgensen, Commissioner Kahn, Commissioner Tolle, Chair Cooley, and Commissioner Munoz-Morris CARRIED (7 to 0) Page 5 of 21 2 4. PUBLIC HEARINGS 4.a 1925 SANTA BARBARA AVENUE (APPL-0232-2024) APPEAL OF THE COMMUNITY DEVELOPMENT DIRECTOR'S DECISION TO APPROVE ARCHITECTURAL REVIEW APPLICATION ARCH-0448-2022 Assistant Planner Walter Oetzell presented the staff report and responded to Commission inquiries. Appellant, Leslie Terry, provided a brief overview of the appeal and responded to questions raised. Applicant's representative, Barry Williams, provided a brief overview of the project. Chair Cooley opened the Public Hearing Public Comment: Debbie Collins Jaime Hendrickson --End of Public Comment-- Chair Cooley closed Public Comment Motion By Commissioner Jorgensen Second By Commissioner Kahn Adopt the Draft Resolution to deny the appeal and uphold the decision of the Community Development Director to approve Minor Development Review Application ARCH-0448-2022. "A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DENYING AN APPEAL AND UPHOLDING THE COMMUNITY DEVELOPMENT DIRECTOR’S DECISION APPROVING MINOR DEVELOPMENT REVIEW APPLICATION ARCH-0448-2022 REGARDING DEVELOPMENT OF A MIXED-USE PROJECT AT 1925 SANTA BARBARA AVENUE (APPL 0232-2024)" Ayes (7): Commissioner Flores, Vice Chair Houghton, Commissioner Jorgensen, Commissioner Kahn, Commissioner Tolle, Chair Cooley, and Commissioner Munoz-Morris CARRIED (7 to 0) Page 6 of 21 3 4.b 10 HIGUERA STREET (ARCH-0358-2023) REVIEW OF A NEW MIXED- USE PROJECT THAT CONTAINS APPROXIMATELY 23,164 SQUARE FEET OF COMMERCIAL SPACE AND A ONE BEDROOM RESIDENTIAL UNIT, WITH ASSOCIATED SITE IMPROVEMENTS Senior Planner Rachel Cohen presented the staff report and responded to Commission inquiries. Applicant representative, Neal Miller, provided a brief overview of the project and responded to questions raised. Chair Cooley opened the Public Hearing Public Comment: None --End of Public Comment-- Chair Cooley closed Public Comment Motion By Commissioner Munoz-Morris Second By Vice Chair Houghton Adopt the Draft Resolution approving the proposed new mixed -use project, associated site design and improvements, sign program, and the removal of two trees based on findings and subject to conditions of approval. "A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING COMMISSION APPROVING A NEW MIXED-USE PROJECT THAT CONTAINS APPROXIMATELY 23,164 SQUARE FEET OF COMMERCIAL SPACE AND A ONE BEDROOM RESIDENTIAL UNIT, WITH ASSOCIATED SITE IMPROVEMENTS, A SIGN PROGRAM, AND A REQUEST TO REMOVE TWO TREES AND REPLANT 25 TREES. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER SECTION 15332 (CLASS 32, INFILL DEVELOPMENT) OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED JUNE 26, 2024 (10 HIGUERA STREET, ARCH-0358-2023)" Ayes (7): Commissioner Flores, Vice Chair Houghton, Commissioner Jorgensen, Commissioner Kahn, Commissioner Tolle, Chair Cooley, and Commissioner Munoz-Morris CARRIED (7 to 0) Page 7 of 21 4 5. COMMENT AND DISCUSSION 5.a STAFF UPDATES AND AGENDA FORECAST Senior Planner Rachel Cohen provided an update of upcoming projects. 6. ADJOURNMENT The meeting was adjourned at 7:47 p.m. The next Regular Meeting of the Planning Commission is scheduled for July 10, 2024 at 6:00 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. APPROVED BY PLANNING COMMISSION: XX/XX/2024 Page 8 of 21 PLANNING COMMISSION AGENDA REPORT SUBJECT: REVIEW OF TEXT AMENDMENTS TO TABLE 2-1 OF THE ZONING REGULATIONS TO ALLOW CANNABIS RETAIL STOREFRONTS TO CONDUCT RETAIL SALES BY DELIVERY WITH APPROVAL OF A CONDITIONAL USE PERMIT OR BY AMENDMENT TO AN EXISTING CONDITIONAL USE PERMIT (CODE-0401- 2024) BY: Ivana Gomez, Cannabis Business Coordinator FROM: Tyler Corey, Deputy Director Phone Number: (805) 781-7147 Phone Number: (805) 781-7169 Email: igomez@slocity.org Email: tcorey@slocity.org APPLICANT: City of San Luis Obispo REPRESENTATIVE: Ivana Gomez RECOMMENDATION Recommend the City Council introduce and adopt an Ordinance amending Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code to allow cannabis retail storefronts to conduct retail sales by delivery with the approval of a Conditional Use Permit, or by amendment to an existing Conditional Use Permit. 1.0 COMMISSION'S PURVIEW The Planning Commission’s role is to review the proposed amendments to the City’s Zoning Regulations for consistency with the Major City Goals and the purpose of the allowable zones and provide a recommendation to the City Council. 2.0 SUMMARY On behalf of the City of San Luis Obispo (City), the Community Development Director (Director) has initiated a text amendment to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code (SLOMC). This amendment implements previous City Council direction to update the cannabis program to allow cannabis retail storefronts to offer delivery services. The proposed text amendments include a revision to Table 2-1 to specify that cannabis retail storefronts may conduct retail sales by delivery in allowable zones, with the approval of a Conditional Use Permit or by amendment to an existing Conditional Use Permit. 3.0 PROJECT INFORMATION 3.1 Background Cannabis retail storefronts (retail storefronts) sell cannabis goods, cannabis accessories, and branded merchandise to the public on site. Pursuant to SLOMC Section § 17.86.080(E)(10)(b), the number of these permits is limited to three total within the city. Current state law allows retail storefronts to also provide retail delivery services. Meeting Date: 8/14/2024 Item Number: 4a Time Estimate: 30 minutes Page 9 of 21 Item 4a CODE-0401-2024 Planning Commission Report – August 14, 2024 Retail non-storefronts (delivery-only businesses) are a separate land use category in Table 2-1 with a different type of permit, and they may conduct retail sales exclusively through delivery to physical locations. There is no numerical limit to the number of retail delivery-only businesses in the City. All cannabis businesses must be in the CAN Overlay Zones (Section § 17.86.080E(5)(b)) and are subject to the requirements of SLOMC Chapter 9.10 (Cannabis Regulations) and Title 17 (Zoning Regulations). Currently, the City has only two operational commercial cannabis businesses, both of which are retail storefronts: Megan’s Organic Market and SLOCAL Roots. An additional retail storefront has been issued a Contingent Operator Permit, pending approval of a Conditional Use Permit to commence operations. 3.2 Previous Review On February 2, 2023, the Planning Commission recommended the City Council allow retail storefronts to also engage in delivery services, which is consistent with state regulations that allow a Type 10 license to engage in retail sales on site and by delivery1. On March 7, 2023, the City Council provided direction to staff to update the Cannabis Program to allow retail storefronts to offer delivery services2. The proposed amendments before the Planning Commission for consideration implement Council’s previous direction. 3.3 Project Description The Director has initiated a text amendment in accordance with SLOMC Section § 17.124.020(B) (Authority to Initiate an Amendment to the Zoning Regulations) to align with previous City Council direction on March 7, 2023 to make amendments to the City’s Cannabis Program to allow cannabis retail storefronts to also conduct retail sales by delivery. Staff proposes amendments to SLOMC Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) to specify that cannabis retail storefronts may conduct retail sales by delivery in allowable zones, with the approval of a Conditional Use Permit, or by amendment to an existing Conditional Use Permit. 4.0 PROJECT ANALYSIS 4.1 Consistency with Previous City Council Action The proposed text amendments have been analyzed for consistency with prior City Council actions. On March 7, 2023, the City Council provided direction to staff to update the Cannabis Program to allow retail storefronts to offer delivery services. The proposed amendments align with this directive by updating Table 2-1 to explicitly authorize retail storefronts to deliver with approval of a Conditional Use Permit or by amendment to an existing Conditional Use Permit. 1 Planning Commission Meeting Agenda Packet (02-08-2023) 2 City Council Meeting Agenda Packet (03-07-2023) Page 10 of 21 Item 4a CODE-0401-2024 Planning Commission Report – August 14, 2024 Additionally, the amendments comply with the Council's broader objectives of regulating cannabis operations to ensure public safety and adherence to state laws by ensuring that all delivery services operate under strict guidelines that include security measures, record-keeping requirements, and compliance with both local and state regulations. 4.2 Consistency with Major City Goals Economic Resiliency, Cultural Vitality and Fiscal Sustainability were prioritized as Major City Goals in the 2023-2025 Financial Plan to support a thriving and sustainable local economy and ensure fiscally responsible city operations. The proposed text amendments align with these goals by expanding retail sales options to include delivery for existing and future retail storefront businesses. This promotes economic well-being by providing more flexible sales avenues, thereby supporting the local economy and contributing to the city’s financial sustainability. 4.3 Consistency with the Retail Commercial (C-R) Zone The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code align with the purpose of the Retail Commercial (C -R) Zone to serve the entire community and the region, as well as tourists and travelers . By allowing retail storefronts to offer delivery services, the proposed amendments increase flexibility and convenience for residents, regional customers, and visitors. This supports economic vitality by enabling businesses to meet evolving market demands, promoting res ilience and stability within the C-R Zone. 4.4 Consistency with the Service Commercial (C-S) Zone The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code align with the purpose of the Service Commercial (C-S) Zone to provide services to meet local needs and demands of the region, including services and limited retail. By allowing retail storefronts to offer delivery services, the proposed amendments enhance the ability of businesses in the C-S Zone to adapt to market needs and expand their service offerings. This supports the zone’s objective of catering to both the community and the broader region, while promoting economic vitality and improving service accessibility. 4.5 Proposed Amendments to Table 2-1 (Uses Allowed by Zone) Staff recommends amendments to the Land Use “Cannabis Activity” section of Table 2- 1, detailed in Figure 1. The proposed amendments clarify the following:  Retail non-storefronts engaging in delivery only are permitted in the C-S, M and BP Zones, with approval of a Minor Use Permit (MUP). Page 11 of 21 Item 4a CODE-0401-2024 Planning Commission Report – August 14, 2024  Retail storefronts, with or without delivery services, are permitted in the C-R and C-S Zones with approval of a Conditional Use Permit (CUP) or by amendment to an existing CUP3. Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required       M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP CANNABIS ACTIVITY Cannabis See Section 17.86.080 Specialty Cultivator MUP MUP MUP Small Cultivator MUP MUP MUP Nursery MUP MUP MUP Manufacturing MUP MUP MUP Distributor MUP MUP MUP Microbusiness CUP MUP/ CUP MUP/ CUP MUP/ CUP See Sec. 17.86.080(E)(12) for specific requirements per zone. Testing CUP A A A Director’s action required. See also Sec. 17.86.080(E)(9). Retailer (Delivery Only) MUP MUP MUP Retailer (Storefront with or without Delivery) CUP CUP Existing retail storefronts that wish to provide delivery services shall modify their existing Conditional Use Permit to include delivery. Figure 1: Proposed Amendment to Table 2-1 5.0 ENVIRONMENTAL REVIEW Recommendation of adoption of the proposed amendments to Table 2 -1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code was reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines and is determined to be exempt from environmental review pursuant to CEQA Guidelines Section § 15301(b)(3) (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 to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) constitute minor modifications to the rules governing commercial cannabis retail storefront operations and 3 Pursuant to 4 CCR § 15416(d), operators engaging in delivery may deliver to any jurisdiction within the State of California provided that such delivery is conducted in compliance with all applicable laws and regulations. Page 12 of 21 Item 4a CODE-0401-2024 Planning Commission Report – August 14, 2024 do not have a significant effect on the environment. Project specific environmental review will be required for any new commercial cannabis activity. Any new or existing cannabis retail storefront applying for a Conditional Use Permit or seeking to amend an existing Conditional Use Permit to engage in delivery would be required to comply with all applicable state and local law, including CEQA compliance. 6.0 OTHER DEPARTMENT COMMENTS The City has a designated steering committee comprised of representatives from the City Attorney’s Office, Police Department, Finance Department, Community Development Department, and City Administration to support the City’s Cannabis Program. The steering committee reviewed the previous amendment adopted by City Council to allow retail storefronts to also deliver. The proposed amendments to implement previous Council action contained within this report have also been reviewed and are supported by the steering committee as consistent with previous Council direction. 7.0 ALTERNATIVES 1. Recommend the City Council not adopt the recommended changes to the Zoning Regulations. This is not recommended because this would be inconsistent with previous direction from the City Council on March 7, 2023, to allow cannabis retail storefronts to also deliver. 2. Modify the recommendation. The Planning Commission may modify the recommended action prior to adoption of the Resolution. 3. Continue the item. An action to continue the item should include a detailed list of additional information or analysis required to make a recommendation. 8.0 ATTACHMENTS A - Draft PC Resolution (CODE-0401-2024) Page 13 of 21 Page 14 of 21 RESOLUTION NO. PC-XXXX-24 A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TABLE 2-1 (USES ALLOWED BY ZONE, SECTION § 17.10.020) OF THE MUNICIPAL CODE TO ALLOW CANNABIS RETAIL STOREFRONTS TO CONDUCT RETAIL SALES BY DELIVERY WITH APPROVAL OF A CONDITIONAL USE PERMIT, OR BY AMENDMENT TO AN EXISTING CONDITIONAL USE PERMIT. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA) AS REPRESENTED IN THE PLANNING COMMISSION AGENDA REPORT AND ATTACHMENTS DATED AUGUST 14, 2024 (CITYWIDE; CODE-0401-2024) 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 August 14, 2024, for the purpose of recommending an amendment to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code, pursuant to a proceeding under CODE-0401-2024; City of San Luis Obispo, applicant; and WHEREAS, notices of said public hearing were made at the time and in the manner required by the law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendations provided by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all evidence, the Planning Commission makes the following findings: 1. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code are consistent with the State of California’s Department of Cannabis Control regulations. 2. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code are consistent with previous City Council direction on March 7, 2023, to update the cannabis program to allow cannabis retail storefronts to offer delivery services. Page 15 of 21 Planning Commission Resolution No. PC-XXXX-2024 CODE-0401-2024 (Citywide) Page 2 3. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code are consistent with the Major City Goal (Financial Plan 2023-2025) to implement initiatives that reinforce a thriving and sustainable local economy as well as to ensure fiscally responsible and sustainable city operations by strengthening existing cannabis businesses, promoting the economic well-being of the community. 4. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code are consistent with the purpose of the Retail Commercial (C-R) Zone to serve the entire community and the region, as well as tourists and travelers. 5. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code are consistent with the purpose of the Service Commercial (C-S) Zone to provide services to meet local needs and demands of the region, including services and limited retail. SECTION 2. Environmental Determination. Recommendation of adoption of the proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code was reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines and is determined to be exempt from environmental review pursuant to CEQA Guidelines Section § 15301(b)(3) (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 to Table 2 -1 (Uses Allowed by Zone, Section § 17.10.020) constitute minor modifications to the rules governing commercial cannabis 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 activity. Any new or existing cannabis retail storefront applying for a Conditional Use Permit or seeking to amend an existing Conditional Use Permit to engage in delivery would be required to comply with all applicable state and local law, including CEQA compliance. Page 16 of 21 Planning Commission Resolution No. PC-XXXX-2024 CODE-0401-2024 (Citywide) Page 3 SECTION 3. Action. The Planning Commission hereby recommends to the City Council the introduction and adoption of an ordinance to amend Table 2 -1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code to allow cannabis retail storefronts to conduct retail sales by delivery in allowable zones with approval of a Conditional Use Permit or by amendment to an existing Conditional Use Permit as set forth in Exhibit A and incorporated herein. Upon motion of ______________________, seconded by __________________ and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this ________ day of _________ 2024. ___________________ Tyler Corey, Secretary Planning Commission Page 17 of 21 Planning Commission Resolution No. PC-XXXX-2024 CODE-0401-2024 (Citywide) Page 4 EXHIBIT A ORDINANCE NO. ____ (2024 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TABLE 2-1 (USES ALLOWED BY ZONE, SECTION § 17.10.020) OF THE MUNICIPAL CODE TO ALLOW CANNABIS RETAIL STOREFRONTS TO CONDUCT RETAIL SALES BY DELIVERY WITH APPROVAL OF A CONDITIONAL USE PERMIT OR BY AMENDMENT TO AN EXISTING CONDITIONAL USE PERMIT. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA) 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, on March 7, 2023, the City Council of the City of San Luis Obispo directed staff to update the cannabis program to allow cannabis retail storefronts to offer delivery services; and 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 O bispo, California on August 14, 2024, for the purpose of recommending an amendment to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) pursuant to a proceeding under CODE- 0401-2024; City of San Luis Obispo, applicant; and WHEREAS, notices of said public hearing were made at the time and in the manner required by the law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendations provided by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all evidence, the City Council makes the following findings: 1. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code are consistent with the State of California’s Department of Cannabis Control regulations. Page 18 of 21 Planning Commission Resolution No. PC-XXXX-2024 CODE-0401-2024 (Citywide) Page 5 2. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) are consistent with previous City Council direction on March 7, 2023, to update the cannabis program to allow cannabis retail storefronts to offer delivery services. 3. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code are consistent with the Major City Goal (Financial Plan 2023-2025) to implement initiatives that reinforce a thriving and sustainable local economy as well as to ensure fiscally responsible and sustainable city operations by strengthening existing cannabis businesses, promoting the economic well-being of the community. 4. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code are consistent with the purpose of the Retail Commercial (C-R) Zone to serve the entire community and the region, as well as tourists and travelers. 5. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section § 17.10.020) of the Municipal Code are consistent with the purpose of the Service Commercial (C-S) Zone to provide services to meet local needs and demands of the region, including services and limited retail. SECTION 2. Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the City of San Luis Obispo Municipal Code is hereby amended as follows: Table 2-1: Uses Allowed By Zone Key: A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required       M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above Land Use Permit Requirement by Zoning District Specific Use Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP CANNABIS ACTIVITY Cannabis See Section 17.86.080 Specialty Cultivator MUP MUP MUP Small Cultivator MUP MUP MUP Nursery MUP MUP MUP Manufacturing MUP MUP MUP Distributor MUP MUP MUP Microbusiness CUP MUP/ CUP MUP/ CUP MUP/ CUP See Sec. 17.86.080(E)(12) for specific requirements per zone. Testing CUP A A A Director’s action required. See also Sec. 17.86.080(E)(9). Retailer (Delivery Only) MUP MUP MUP Page 19 of 21 Planning Commission Resolution No. PC-XXXX-2024 CODE-0401-2024 (Citywide) Page 6 Retailer (Storefront with or without Delivery) CUP CUP Existing retail storefronts that wish to provide delivery services shall modify their existing Conditional Use Permit to include delivery. SECTION 3. Environmental Determination. Adoption of the proposed amendments to Table 2-1 (Uses Allowed by Zone § 17.10.020) was reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines and is determined to be exempt from environmental review pursuant to CEQA Guidelines Section § 15301(b)(3) (General Rule Exemption), which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environmen t. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) constitute minor modifications to the rules governing commercial cannabis 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 activity. Any new or existing cannabis retail storefront applying for a Conditional Use Permit or seeking to amend an existing Conditional Use Permit to engage in delivery would be required to comply with all applicable state and local law, including CEQA compliance. SECTION 4. Action. The City Council hereby adopts an ordinance amending Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code to allow cannabis retail storefronts to conduct retail sales by delivery with approval of a Conditional Use Permit or by amendment to an existing Conditional Use Permit. SECTION 5. 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. Page 20 of 21 Planning Commission Resolution No. PC-XXXX-2024 CODE-0401-2024 (Citywide) Page 7 SECTION 6. 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 _____ 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2024, 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 Page 21 of 21