Title
Cannabis Business Zoning Text Amendments - Applicant: City of Alameda. Public Hearing to Consider Zoning Text Amendments to modify existing cannabis business land use regulations, including whether to: (1) add cannabis retail businesses as conditionally permitted uses in the C-1, Neighborhood Business and C-M, Commercial-Manufacturing Zoning Districts; (2) add delivery-only cannabis retail businesses as a conditionally permitted use in the C-M, Commercial-Manufacturing Zoning District; (3) amend certain portions of the zoning code to enable cannabis retail businesses to dispense non-medicinal or “adult use” cannabis; and (4) any other necessary amendments, including amending certain portions of the zoning code to eliminate the dispersion requirement for delivery-only cannabis businesses. The proposed text amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to the Business and Professions Code section 26055(h) and pursuant to Section 15061(b)(3) of the CEQA Guidelines.
Body
To: Honorable President and
Members of the Planning Board
From: Allen Tai, Planning Services Manager
Date: September 24, 2018
RE: Cannabis Business Zoning Text Amendments - Applicant: City of Alameda. Public Hearing to Consider Zoning Text Amendments to modify existing cannabis business land use regulations, including whether to: (1) add cannabis retail businesses as conditionally permitted uses in the C-1, Neighborhood Business and C-M, Commercial-Manufacturing Zoning Districts; (2) add delivery-only cannabis retail businesses as a conditionally permitted use in the C-M, Commercial-Manufacturing Zoning District; (3) amend certain portions of the zoning code to enable cannabis retail businesses to dispense non-medicinal or “adult use” cannabis; and (4) any other necessary amendments, including amending certain portions of the zoning code to eliminate the dispersion requirement for delivery-only cannabis businesses. The proposed text amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to the Business and Professions Code section 26055(h) and pursuant to Section 15061(b)(3) of the CEQA Guidelines.
BACKGROUND
In 2017, the City Council adopted ordinances that covered all aspects of regulating the operations of cannabis businesses in Alameda, including land use regulations requiring conditional use permits for cannabis businesses, which the Planning Board had reviewed and recommended approval. These regulations were effective on January 18, 2018.
Because the maximum number of permits to be issued by business category is capped, the City Council directed staff to develop and implement a Request for Proposals (RFP) process to select the businesses in each category who would be eligible to move forward with applying for and obtaining the requisite approvals, with the exception of testing labs, which were later permitted to apply for a permit on a first come/first served basis.
These categories include:
• One nursery cultivation (including distributor’s) permit
• Four manufacturing permits (including distributor’s) permit
• Two medicinal retail dispensary permits (including delivery permits)
On July 24, 2018, staff provided City Council with a semi-annual report on cannabis, including an update on the RFP process, and sought direction from Council concerning potential amendments to the adopted ordinances and related regulations (Exhibit 1, July 24, 2018 City Council Staff Report).
At that meeting, the City Council directed staff to return with a number of potential amendments to existing cannabis land use regulations, including amendments to the Zoning Code to allow:
• Cannabis retail (dispensaries) in the C-1, Neighborhood Business Districts, and C-M, Commercial-Manufacturing Zoning District.
• Delivery-only dispensaries with no direct public retail interface in the C-M, Commercial-Manufacturing Zoning District.
• Sale or delivery of non-medicinal or “adult use” cannabis.
All of the above would be conditionally permitted uses requiring approval of a use permit through a public hearing process.
DISCUSSION
Adding Cannabis Retail to the C-1 and C-M Districts:
The C-1 zoning district regulations in Alameda Municipal Code (AMC) Section 30-4.8 describes the purpose of the district to “serve residential areas with convenient shopping and service facilities.” The C-1 districts are primarily located along the Lincoln Avenue and Central/Encinal Avenue at locations that once served as railroad stations (Exhibit 2, Map of C-1 and C-M zones in Alameda). Today, these areas are populated with small businesses engaged in retail, food, and office businesses. From a land use perspective, Cannabis Retail, is a form of retail business that is consistent with the purpose and intent of the C-1 zone. As a conditionally permitted use, the City also has the ability to consider and impose conditions on any aspect of the cannabis business to address potential negative impacts.
The C-M District regulations are described below, and as in the C-1 District, permitting cannabis retail sales conditionally in the C-M District would be complementary to the general commercial facilities and light manufacturing uses permitted in that District.
Adding Delivery-Only Cannabis Retail to the C-M District:
Under AMC Section 30-4.10, the C-M, Commercial Manufacturing Zoning District is intended for a broad variety of general commercial facilities and light manufacturing uses such as food distribution, research labs, and warehouses. The Harbor Bay Business Park, Wind River Campus, and Ballena Bay are the primary business locations zoned C-M. Two other locations zoned C-M include Stewart Court off of Constitution Avenue and the city block containing Fire Station 3 and the Emergency Operations Center on Grand Street.
Allowing delivery-only dispensaries as a conditionally permitted use in the C-M district would be consistent with the underlying intent for that zone. The nature of delivery-only dispensaries would be no different than other distribution or warehouse facilities that already exist in those locations. With all Cannabis Businesses, the City has the ability to impose conditions of approval to address potential impacts through the use permit process.
Adult Use of Cannabis:
Currently, the cannabis regulations in the Zoning Code only allow the sale or delivery of medicinal cannabis. At its July 24, 2018 meeting, the Council considered lifting the ban on adult-use sales based on a number of factors, including the filing of valid notice of intent to circulate a citizen-initiated petition to legalize adult use cannabis. Although this amendment does not raise land use concerns or change the nature of Cannabis Retail use from a land use and zoning perspective, it does require the Board to consider the requisite amendments to the Zoning Code should the Council ultimately decide to lift the ban. Accordingly, the City Council directed staff to prepare the draft ordinance language to allow adult use cannabis for its consideration Therefore, the Board is being asked to consider the requisite Zoning Code changes to effectuate potential Council direction. The draft language is included in Exhibit 3 (Draft Ordinance). As with all amendments to the Zoning Code, the Planning Board is being asked to make a recommendation to the City Council to either approve or deny the proposed amendment. The City Council is the approving body for all ordinances amending the Zoning Code.
Other Amendment(s): Delivery-Only Dispersion Requirements:
On July 24, 2018, the Council directed staff to leave in place the separation distance provision (or dispersion requirement), which requires that “no two Cannabis Businesses engaging in Cannabis Retail shall be permitted to operate within one (1) mile of each other.” Council’s direction on the separation distance requirement came before the Council directed staff and the Planning Board to consider Zoning Code amendments to allow “delivery-only” dispensaries in the C-M zoning district.
However, Staff later solicited and received clarification from Council that delivery-only dispensaries would not be subject to the one-mile dispersion requirement. The draft ordinance contains a revision to make this clear.
CONCLUSION
In summary, the changes directed by the City Council involve minor edits to the current Zoning Code. These amendments are consistent with existing zoning and do not raise significant land use concerns from what the Council adopted in 2017, to regulate cannabis business activities.
PUBLIC NOTICE AND COMMENT
This agenda item was advertised in the Alameda Sun and public notices were posted as required by the Alameda Municipal Code. No public comments were received by staff at the time this report was published.
ENVIRONMENTAL REVIEW
Recommending to adopt of the Zoning Code amendments is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Business and Professions Code section 26055(h) as discretionary review and approval, which shall include any applicable environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code, shall be required in order to engage in commercial cannabis activity within the City of Alameda under such amendment to the Zoning Code. Adoption of the amendments is additionally exempt from CEQA pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of these amendments may have a significant effect on the environment.
RECOMMENDATION
Hold a public hearing and recommend the City Council approve the draft zoning text amendments (Exhibit 3).
Respectfully submitted,
Allen Tai
Planning Service Manager
Exhibits:
1. July 24, 2018 City Council Staff Report
2. Map of C-1 and C-M Zones in Alameda
3. Draft Ordinance