HomeMy WebLinkAboutItem 6b. Cannabis Business Overlay Zone Expansion (RZ-0118-2023)
PLANNING COMMISSION AGENDA REPORT
SUBJECT: REVIEW OF CANNABIS BUSINESS OVERLAY ZONES EXPANSION TO
INCLUDE THE RECENTLY ANNEXED FIERO LANE – CLARION COURT AND EAST
AIRPORT AREAS
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 Draft Resolution recommending City Council introduce and adopt an Ordinance
expanding the Cannabis Business Overlay Zones to include the recently annexed Fiero
Lane – Clarion Court and the East Airport Areas of the Airport Area Specific Plan.
1.0 COMMISSION'S PURVIEW
Review the recommended expansion of the Cannabis Business Overlay Zones and make
a recommendation to City Council for the introduction and adoption of an Ordinance
approving the proposed expansion.
2.0 SUMMARY
Staff is anticipating opening a new application period for commercial cannabis operator
permits, including for the third retail storefront permit, in summer 2023. In advance of the
new application period, staff recommends Council approve a proposed expansion of the
Cannabis Business Overlay Zones (CBZ) to include the recently annexed Fiero Lane –
Clarion Court Area and the East Airport Area along Broad Street. The intent is to obtain
and retain qualified operators by expanding opportunities for where cannabis businesses
may be permitted.
The CBZ expansion requires a change to the City’s Zoning Map which falls under the
purview of the Planning Commission. This report presents the background and
justification for the proposed expansion and a recommendation for the Planning
Commission to adopt a Resolution (Attachment A) recommending Council introduce and
adopt an Ordinance (Exhibit A to the Resolution) approving the proposed expansion.
3.0 PREVIOUS REVIEW
On February 8, 2023, the Planning Commission reviewed and approved a
recommendation amending the Municipal Code modifying specific rules for commercial
cannabis retail storefront operations and expanding the Cannabis Business Overlay
Zones to include the recently annexed East Airport Area of the Airport Area Specific Plan
(AASP).
Meeting Date: 4/12/2023
Item Number: 6b
Time Estimate: 30 Minutes
Page 129 of 149
Item 6b
RZ-0118-2023
Planning Commission Report – April 12, 2023
Linked for reference is PC Resolution No. PC-1069-2023, adopted by the Planning
Commission on February 8, 2023, approving staff’s recommendation. On March 7, 2023,
City Council reviewed and approved the introduction of an Ordinance amending the
Municipal Code modifying the specific rules for retail storefront operations. The Ordinance
returned to Council and was adopted on March 21, 2023.
At the Council March 7th meeting, staff did not present, for Council’s consideration,
introduction of an Ordinance expanding the Cannabis Business Overlay Zones to include
the East Airport Area. Instead, staff is scheduled to return to Council on May 2, 2023, with
a recommendation to introduce an Ordinance expanding the Cannabis Business Overlay
Zones to include both the Fiero Lane – Clarion Court Area and the East Airport Area.
4.0 PROJECT ANALYSIS
In September 2018, City Council approved the establishment of the Cannabis Business
Overlay Zones (CBZs) consisting of seven separate designated areas of the City where
commercial cannabis activities may be permitted. For reference, Attachment C is a map
of the City showing all the CBZs in green. The CBZs contain an appropriate mixture of
land use types for commercial cannabis activities; are generally free of 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 and will develop
recommendation(s) based on the evaluation for Planning Commission’s and City
Council’s consideration.
4.1 Fiero Lane – Clarion Court Area
In November 2019, City Council approved annexation of the Fiero Lane – Clarion Court
Area. The area is made up of 30 parcels totaling 38.97 acres of land and is located on
the west side of Broad Street within the Airport Area Specific Plan (AASP). The area
includes developed properties along Fiero Lane and Clarion Court with a mix of industrial,
manufacturing, commercial, and office uses; with an estimated 500,124 square feet of
total building area.
4.2 East Airport Area
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
opposite of the airport, bounded by Farmhouse Lane and Kendall Road, including Allene
Way, Morabito Place, and Prospect Street. Figure 1 shows the boundaries and
relationship of the proposed expansion areas to the San Luis Obispo Regional Airport.
Page 130 of 149
Item 6b
RZ-0118-2023
Planning Commission Report – April 12, 2023
Figure 1. Cannabis Business Zone Expansion Boundaries Map
4.3 Compatibility with Allowable Land Use Types
When the Cannabis Business Overlay Zones (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.
Fiero Lane – Clarion Court Area and East Airport Area are consistent with the
considerations used to develop and establish the initial CBZs. Fiero Lane - Clarion Court
area does not meet the zoning requirements for retail storefront permitting because the
Service Commercial parcels in the area do not front an arterial street but is appropriate
for all other cannabis permit types.
Table 1 shows the various cannabis activities permitted by the City, the land use type in
which each of the activities are allowed, and the approval level needed for use permit
issuance as adopted by City Council. The East Airport Area is zoned Service Commercial
(C-S) throughout which allows for all cannabis activities permitted by the City.
Page 131 of 149
Item 6b
RZ-0118-2023
Planning Commission Report – April 12, 2023
The Fiero Lane – Clarion Court Area is a mixture of Service Commercial (C-S),
Manufacturing (M), and Business Park (BP) zones. These three zones allow for all
permitted cannabis activities except for retail storefront since none of the parcels zoned
Service Commercial (C-S) in the Fiero Lane – Clarion Court Area front an arterial street
as required by the City’s Zoning Regulations.
If the CBZ expansion is approved, any retail storefront or Microbusiness with storefront
activity permitted in the annexed areas would return to Planning Commission for review
and approval prior to issuance of a use permit.
Cannabis Activity Land Use Type
O C-R C-S M BP
Cultivation D D D
Nursery D D D
Manufacturing D D D
Distribution D D D
Microbusiness PC* D/PC* D/PC* D/PC*
Testing Lab PC AA AA AA
Retail (Delivery) D D D
Retail (Storefront) PC PC
AA = Administrative Approval D = Director’s Approval PC = Planning Commission Approval
*Planning Commission Approval required if activity includes retail storefront
Table 1: Cannabis Activities Allowed by Land Use Type
5.0 ENVIRONMENTAL REVIEW
The recommended action was reviewed in accordance with the California Environmental
Quality Act (CEQA) Guidelines and is determined to be exempt from environmental
review pursuant to the “Common Sense” Rule (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 effect
on the environment because the inclusion does not alter the development standards for
the land use types within the proposed expansion areas. Commercial cannabis operator
permit applications for properties within the expansion areas would be required to comply
with all applicable state and local law, including CEQA compliance or exempt ion.
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
expansion and supports the recommendation in this report.
Page 132 of 149
Item 6b
RZ-0118-2023
Planning Commission Report – April 12, 2023
7.0 ALTERNATIVES
1. Recommend the City Council not adopt the recommended CBZ expansion. 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 prior to adoption of the Resolution.
8.0 ATTACHMENTS
A - Draft Resolution recommending Council action to expand the Cannabis Business
Overlay Zones
B - Cannabis Business Overlay Zones City Map
Page 133 of 149
Page 134 of 149
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 EXPANDING
THE CANNABIS BUSINESS OVERLAY ZONES (RZ-0118-2023)
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 April 12, 2023, for the purpose of reviewing and making a recommendation
to the City Council of San Luis Obispo 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:
a) The amendment to the City’s Zoning Map expanding the Cannabis Business
Overlay Zones to include the Fiero Lane – Clarion Court Area and 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.
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 “Common Sense” 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 expansion does
not alter the underlying base Zones land use types or 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 and Fiero Lane –
Clarion Court Area as part of the City’s existing permitting processes.
SECTION 3. Recommended actions. The Planning Commission does hereby
recommend the City Council:
Page 135 of 149
Resolution No. _____ (2023 Series) Page 2
R ______
1) Introduce and adopt an Ordinance amending the Zoning Map to expand the
Cannabis Business Overlay Zones to include the East Airport Area and Fiero
Lane – Clarion Court Areas shown in Exhibit A.
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 12th day of April, 2023.
___________________________
Tyler Corey, Secretary
Planning Commission
Page 136 of 149
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 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 ZONES
AND THE RULES AND REGULATIONS ESTABNLISHED IN THE CITY’S
MUNICIPAL CODE (RZ-0118-2023)
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 Zones; and
WHEREAS, on November 19, 2019, the City Council of the City of San Luis Obispo
approved the annexation of the properties along Fiero Lane and Clarion Court to the City
of San Luis Obispo; and
WHEREAS, on March 7, 2020, the City Council of the City of San Luis Obispo
approved the annexation of the East Airport Area Properties (East Airport Commerce
Park Association, Senn-Glick) to the City of San Luis Obispo; and
WHEREAS, overlay Zones supplement the base Zones and are used to establish
special use or development regulations for a particular area in addition to the provisions
of the underlying base Zones; and
WHEREAS, the expansion of the Cannabis Business Overlay Zones 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 Cannabis
Business Overlay Zones 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 April 12, 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:
Page 137 of 149
Resolution No. _____ (2023 Series) Page 4
R ______
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.
SECTION 2. Environmental Review. The proposed expansion of the Cannabis
Business Overlay Zones to include the Fiero Lane – Clarion Court Area and the East
Airport Area was reviewed in accordance with the California Environmental Quality Act
(CEQA) Guidelines. The proposed expansion is d etermined to be exempt from
environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common
Sense” 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 expansion does not alter the underlying base Zones land use types or
development standards for those land use types. Project specific environmental review
will be required for any new commercial cannabis operation located within the Fiero Lane
– Clarion Court Area and 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 nine 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 subdiv isions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
SECTION 4. Ordinance Number 1653 (2018 Series) is hereby repealed and
replaced.
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 2nd day of May, 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:
Page 138 of 149
Resolution No. _____ (2023 Series) Page 5
R ______
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 139 of 149
Resolution No. _____ (2023 Series) Page 6
R ______
EXHIBIT A
Page 140 of 149
Resolution No. _____ (2023 Series) Page 7
R ______
Page 141 of 149
Resolution No. _____ (2023 Series) Page 8
R ______
Page 142 of 149
Resolution No. _____ (2023 Series) Page 9
R ______
Page 143 of 149
Resolution No. _____ (2023 Series) Page 10
R ______
Page 144 of 149
Resolution No. _____ (2023 Series) Page 11
R ______
Page 145 of 149
Resolution No. _____ (2023 Series) Page 12
R ______
Page 146 of 149
Resolution No. _____ (2023 Series) Page 13
R ______
Page 147 of 149
Resolution No. _____ (2023 Series) Page 14
R ______
Page 148 of 149
Page 149 of 149
RZ-0118-2023 -Cannabis Business
Overlay Zone Expansion
Planning Commission
April 12, 2023
Recommendation
Adopt a Draft Resolution recommending City Council introduce
and adopt an Ordinance expanding the Cannabis Business
Overlay Zones to include recently annexed Fiero Lane –Clarion
Court and the East Airport Areas of the Airport Area Specific Plan.
Cannabis Business Overlay Zones
In September 2018,Council designated seven (7)
areas (shown in green)appropriate for commercial
cannabis activities.Areas were determined based on
the following criteria:
1.Contained land use types appropriate for various
commercial cannabis permit types
2.Free of state and locally identified sensitive uses
(schools,daycare facilities,residential uses,etc.)
3.Properties fronting an arterial street (required for
retail storefront permitting)
3
4Location of Proposed Expansion Areas
Fiero Lane –Clarion Court Area 5
In November 2019,Council annexed properties
along Fiero Lane -Clarion Court north of the
airport on the west side of Broad Street.
The Area is comprised of:
1.38.97 acres made up of 30 parcels
2.Zoned Service Commercial (C-S-SP),
Manufacturing (M-SP),and Business Park
(BP-SP)
3.500,000 square feet of total building area
4.Located within the Airport Area Specific Plan
East Airport Area 6
In March 2020,Council annexed an area
along Broad Street opposite of the airport
referred to as the East Airport Area.
The Area is comprised of:
1.The East Airport Commerce Park
Association and the Senn/Glick
Development
2.58.31 acres made up of 33 parcels (23
of which are developed)
3.Zoned Service Commercial (C-S-SP)
4.Located within the Airport Area
Specific Plan
7Compatibility with Allowable Land Use Types
Cannabis Activity Land Use Type
O C-R C-S M BP
Cultivation D D D
Nursery D D D
Manufacturing D D D
Distribution D D D
Microbusiness PC*D/PC*D/PC*D/PC*
Testing Lab PC AA AA AA
Retail (Delivery)D D D
Retail (Storefront)PC PC
AA = Administrative Approval D = Director’s Approval PC = Planning Commission Approval
*Planning Commission Approval required if activity includes retail storefront
Recommendation
Adopt a Draft Resolution recommending City Council introduce
and adopt an Ordinance expanding the Cannabis Business
Overlay Zones to include recently annexed Fiero Lane –Clarion
Court and the East Airport Areas of the Airport Area Specific Plan.