Title
Conditional Use Permit - 1528 Webster Street - Applicant: Dustin Moore on behalf of Main Street Supply, LLC. Public hearing to consider a Use Permit to allow the operation of a Cannabis Retail dispensary within the existing commercial building at 1528 Webster Street for the sale of Cannabis and Cannabis Products. The dispensary will also have a delivery service and will have an indoor area for on-site consumption of products by customers. The project is located within the C-C (Community Commercial) Zoning District. The project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 - Minor Alteration of Existing Facilities
Body
To: Honorable President and
Members of the Planning Board
From: Andrew Thomas
Planning, Building and Transportation Director
BACKGROUND
In November and December 2017 the City Council adopted two separate ordinances which permitted, and established guidelines for, commercial cannabis activity within the City of Alameda. These ordinances were in response to the legalization of commercial cannabis activity in California and the State’s subsequent Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).
The first ordinance established the guidelines for the operation of commercial cannabis activity and was codified in Alameda Municipal Code (AMC) Section 6-59 (hereafter referred to as the Cannabis Business Regulations). Among other things, these guidelines defined the different types of commercial cannabis businesses, set the maximum number of permits for each type of business (cap), established buffers around sensitive uses where commercial cannabis businesses are prohibited, and required that all commercial cannabis businesses receive a Cannabis Business Operators Permit (Operators Permit).
The second ordinance modified AMC Section 30-10 to repeal the City’s prohibition on medicinal marijuana dispensaries and cultivation, identified specific zoning districts in which commercial cannabis activity is permitted, and required all commercial cannabis businesses obtain a use permit for their location.
In April 2018, to administer the cap, the City issued a request for proposals (RFP) to potential businesses seeking an Operators Permit. In July 2018, the applicant, Main Street Supply, LLC, was awarded the limited privilege to apply for an Operators Permit to operate a cannabis retail dispensary at 1528 Webster Street. The applicant is requesting the approval of a use permit to establish a cannabis retail dispensary at the project site pursuant to the revised cannabis land use regulations adopted in 2017.
discussion
Regulatory Process
As discussed above, the City requires two different permits for all commercial cannabis businesses to lawfully operate within the City. AMC Section 6-59.4 requires both an administrative use permit, which is discretionary, and an Operators Permit, which is ministerial.
Use Permit
AMC Section 30-10.1.f. states that the administrative use permit be issued by the Zoning Administrator, in accordance with AMC Section 30-21.4, prior to the issuance of the Operators Permit. However, as in other instances, projects with large public interest may be referred to the Planning Board, as is the case with this application. The use permit process calls on the Planning Board to make the following findings regarding the proposed land use:
1. The location of the proposed use is compatible with other land uses in the general neighborhood area, and the project design and size is architecturally, aesthetically, and operationally harmonious with the community and surrounding development.
2. The proposed use will be served by adequate transportation and service facilities including pedestrian, bicycle, and transit facilities.
3. The proposed use, if it complies with all conditions upon which approval is made contingent, will not adversely affect other property in the vicinity and will not have substantial deleterious effects on existing business districts or the local economy.
4. The proposed use relates favorably to the General Plan.
As part of considering this use permit, the Planning Board may establish conditions of approval with respect to maintenance and operation of the cannabis business to ensure that the purposes of the Zoning Ordinance and AMC Section 6-59.1 et seq. are met by the project. If violations to the conditions are found, a use permit can be revoked or modified following a public hearing in accordance with AMC Section 30-21.3.
Operators Permit
After receiving approval of a use permit, the applicant must also obtain an Operators Permit from the City. The Operators Permit is a ministerial review process where the City will issue a permit upon determining that the applicant has met all the requirements for the permit specific in AMC Section 6-59, which generally includes the following topics:
1. Compliance with State requirements
2. Compliance with Operational Radius Guidelines
3. On-Site Consumption
4. Air Quality, Odor Control, and Ventilation
5. Security Measures (including a Security Guard)
6. Alarm Systems
Pursuant to AMC Section 6-59.4(a), the Operators Permit is specific to the location where the cannabis business is permitted to operate, is a conditional privilege to conduct activities set forth in the permit. The Operators Permit is not transferrable, and unlike a use permit, it does not run with the land.
Subsequent Regulatory Approvals
The applicant will also need to comply with applicable law, including without limitation, obtaining a “Type-10” license through the State prior to beginning operations. If a use permit is granted, upon the use permit’s approval being final the applicant will move forward with its Operators Permit application. Additionally, the project will require building permits for the interior alterations to the building.
Existing Site and Surrounding Uses
The project site is a vacant commercial building at the northeast corner of Webster Street and Haight Avenue and it is located within the C-C (Community Commercial) zoning district. The building was built in 1916 and operated as a bank/credit union until mid-2018, and has been vacant since. The building was expanded and altered over the years, with the last significant renovations occurring in 1952. The main floor is approximately 4,550 square feet and there is an approximately 870 square foot mezzanine located at the rear of the building. The footprint of the building covers the entire lot and there has never been off-street parking on the property.
Properties directly to the east of the project site are located within the R-5 (General Residential) zoning district and are primarily residential, with two religious institutions and a City owned public parking lot also located along the 700 block of Haight Avenue. All other adjacent properties are located within the C-C zoning district. The International Chi Institute martial arts studio is located in the building directly north of the project site, Tapout Fitness is located south across Haight Avenue, and several restaurant, retail, and personal service uses are located west across Webster Street. On Tuesdays and Saturdays of every week there is a Farmers’ Market in the mornings on Haight Avenue immediately outside this building.
Proposed Operation
The applicant proposes using approximately 3,500 square feet of the main floor for a retail cannabis dispensary and lounge for on-site consumption (Exhibit 1). The applicant has provided a letter describing the operation of the proposed Cannabis Retail Dispensary (Exhibit 2). Of the 3,500 square feet, approximately 1,500 square feet will be dedicated to the cannabis retail operations. Approximately 1,200 square feet will be dedicated to an indoor lounge for on-site consumption. The remaining 800 square feet will be dedicated to a reception area where customers are checked in prior to accessing either retail or lounge areas. The remainder of the main floor and the mezzanine will be used for storage and other employee only uses.
Hours of operation will be from 9:00 AM to 9:00 PM. These hours are in compliance with AMC Section 6-59.10.o., which permits commercial cannabis activity to take place between 7:00 AM and 9:00 PM, and with the applicable State implementing regulations, which permits Type-10 licensees to operate between 6:00 AM and 10:00 PM.
In accordance with AMC Section 6-59.10(g), on-site consumption is permitted for Dispensary/Retail Permittees. AMC Section 24-11, which is the prohibition on smoking in places of employment and enclosed and unenclosed public places, does not apply to businesses that obtain a Type-10 license through the State. However, on-site consumption is only permitted in areas excluded from public view or access. The applicant also proposes to operate an off-site delivery service from the project site.
Land Use Compatibility
The Cannabis Business Regulations prohibit cannabis businesses from being located within specified distances from sensitive uses. Specifically, dispensary/delivery shall not be located within a one thousand foot radius of a public or private school providing instruction in kindergarten or any grades 1 through 12. Additionally, a dispensary/delivery use shall not be located within a six hundred foot radius of a youth center, tutoring center, or day care center. The project’s location was verified for compliance with these operational radius requirements during the RFP process prior to this application of a use permit. The uses nearby include martial arts studio, a religious institution, and residences just a few doors down, however under the Cannabis Business Regulations these uses are not sensitive uses, as a determined by the City Council.
From a land use compatibility perspective the cannabis retail dispensary is similar to other retail and service oriented businesses intended for the C-C zoning district, such as a pharmacy or the building’s previous bank use. Commercial activity for a cannabis retail dispensary, pharmacy or bank all operate similarly, where customers visit the business to purchase a product or conduct business. Therefore, the nature of cannabis retail dispensary does not raise land use compatibility issues in the C-C zone.
Conditions of Approval/Good Neighbor Policies
Residents are concerned about the potential nuisances generated by commercial cannabis activity. “Good Neighbor Policies” have been used by other California cities when permitting cannabis retail dispensaries. The applicant has worked with staff to establish a set of “Good Neighbor Policies” to address any potential impacts on the surrounding neighborhood (Exhibit 3). Some of these policies are addressed through the Operators Permit, while other policies will require conditions of approval through the use permit process. The following is a brief summary of the Good Neighbor Policies as they are included as conditions of approval of this use permit:
• Outdoor Lighting: Provide outside lighting in a manner that illuminates the outside street and sidewalk areas and adjacent parking as appropriate. The lighting plan shall be subject to review and approval by the Chief of Police and Planning, Building, and Transportation Director, or their designees, and shall be compliant with the City’s recently adopted Dark Skies Ordinance and other applicable provisions of the regulatory ordinance (e.g., AMC Section 6-59.10.q.4, “All outdoor lighting used for security purposes shall be shielded and downward facing.”).
• Litter cleanup: Maintain the premises, adjacent sidewalk and/or alley in good condition at all times.
• Odor: Provide adequate and appropriate ventilation to ensure odor controls result in no emission of noxious odors. The applicant must prepare an air quality, odor and ventilation control plan that complies with the requirements of the Bay Area Air Quality Management District (BAAQMD). An odor detected no more than fifteen (15) minutes in one (1) day is acceptable. Documented violations of these guidelines by the City are grounds to initiate a revocation hearing.
• Posted Notices: The applicant/operator shall post notices on the premises that:
o Direct patrons to leave the establishment and neighborhood peacefully and in an orderly fashion.
o Direct patrons to not litter or block driveways.
o Advise individuals of the prohibition on loitering.
o Advise individuals that smoking or consumption of cannabis or cannabis products is prohibited in public places.
o Indicate “No Smoking” in any area of the premises where smoking is prohibited per AMC Section 24-11, where not excepted by the Type-10 license.
o Indicate “No Consuming Cannabis” in any area of the premises where the consumption of cannabis and cannabis products is prohibited.
• Security: The applicant/operator shall provide at least one private security guard during hours of operation. In addition to providing onsite security, the security guard shall assist patrons to avoid the following activity around the premises:
o Double parking
o Loitering
o Littering
o Smoking or consuming cannabis products in public spaces.
• Visual screening: The applicant shall coordination with the West Alameda Business Association (WABA) and the City’s Planning Division on the design of screening for all public facing windows to obscure view of on-site consumption from the public right of way. As previously mentioned, the proposed smoking lounge will be located along the south portion of the building, where there are windows facing onto Haight Avenue. This condition ensures all on-site consumption activity will be screened from the public right of way and that the method of screening will be acceptable according to WABA and City design standards.
Operators Permit Standard Requirements
In addition to the conditions of approval for a use permit, the Operators Permit also prescribes specific requirements for cannabis businesses. For instance, one requirement stipulates that the business employ both an On-Site Community Relations staff member and an On-site Operations Manager. The Operators Permit requires that the name and phone number of the individual responsible for each position be posted on-site and provided to the City and kept current. The role of the On-Site Community Relations staff member is to be the contact person for any potential operating problems so that the business can immediately address the issue. The On-Site Operations Manager will be supervising the day to day operations as well as being available 24-hours a day to be the point of contact between the City and the business.
Parking
The C-C zoning districts, which run along portions of Park Street and Webster Street, are considered Alameda’s “downtown districts,” and place an emphasis on pedestrian retail and service uses on the ground floor level. As a result, most properties in the C-C zoning districts do not have off-street parking on-site. Webster Street is a main corridor in Alameda for AC Transit, the 51A, 20, 93, and O bus lines travel along Webster Street and provide transit access between the main island and the 12th Street BART station and other regional transit connections in downtown Oakland. Per AMC Section 30-7.2(d), when approving a conditional use permit, the City may impose measures that will reduce the parking demand of the project and other mitigation measures. Consistent with prior Use Permit approvals within the C-C zone, staff is recommending conditions of approval that require the applicant work with WABA and the City’s Public Works Department to identify locations for new bicycle racks within the Webster Street business district, and to provide funding to the City for the purchase and installation costs of two (2) bicycle racks, which the City would then install. Staff also recommends a condition of approval that requires the applicant join the Alameda Transportation Management Association (ATMA), which would result in all full-time and part-time employees receiving transit passes. The ATMA is the Transportation Demand Management (TDM) program required pursuant to AMC Section 30-7.13.
Conclusion
The application is consistent with the findings required for the approval of a conditional use permit as shown in the draft resolution (see Exhibit 4). The applicant has demonstrated a dedication to the good neighbor policies to minimize any impact on the surrounding neighborhood, and staff has included conditions of approval to ensure that the good neighbor policies not already mandated through the standard conditions of approval of AMC Section 6-59.10 are required as part of the review and approval of the Operators Permit.
PUBLIC NOTICE and Comments
Property owners and residents within 300 feet of the project’s boundaries were notified of the public hearing and given the opportunity to review and comment on the proposal. As of the writing of this report, no comments specific to this use permit request were received by staff.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 - operation, permitting or leasing of existing private structures involving negligible or no expansion of use beyond that which exists. As a separate and independent basis, the project is also exempt from CEQA pursuant to CEQA Guidelines section 15183 (projects consistent with General Plan and Zoning).
RECOMMENDATION
Hold a public hearing and adopt the Draft Resolution approving a Use Permit for a Retail Cannabis dispensary, with on-site consumption and off-site delivery.
Respectfully submitted:
David Sablan, AICP
Project Planner
Exhibits:
1. Project Plans
2. Operation Narrative from Applicant
3. Good Neighbor Policies
4. Draft Resolution