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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.