Title
PLN20-0164 - Use Permit - 1222 Park Street - Applicant: Aaron Kraw on behalf of Park Social, LLC. Public hearing to consider a Use Permit to allow the operation of a cannabis retail dispensary with off-site delivery within the existing commercial building at 1222 Park Street for the on-site sale of Cannabis and Cannabis Products. The project is located within the C-C-T (Community Commercial, Theatre Combining) Zoning District. The project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 - Minor Alteration of Existing Facilities and Section 15183 - Projects consistent with General Plan and Zoning
Body
To: Honorable President and
Members of the Planning Board
From: David Sablan
Planner III
BACKGROUND
The subject use permit application for a cannabis retail dispensary follows a brief history of City Council actions that established the current cannabis permitting framework:
In 2017, the City Council adopted two separate ordinances which permitted commercial cannabis activity within the City of Alameda (City). The first ordinance codified Alameda Municipal Code (AMC) Section 6-59, which established Cannabis Business Regulations for commercial cannabis activity in the City. The Cannabis Business Regulations require that every commercial cannabis business obtain a Cannabis Business Operator’s Permit (Operator’s Permit), and capped the number of cannabis retail dispensaries to two in the City. The second ordinance modified the Zoning Ordinance (AMC Section 30-10) to allow commercial cannabis activity in certain zoning districts, and required all commercial cannabis businesses obtain a use permit.
In March 2019, the Planning Board approved the first use permit for a retail cannabis dispensary at 1528 Webster Street, which began operations in February of 2020.
In May 2019, the City Council adopted an ordinance that increased the maximum number of cannabis dispensaries in the City from two to four, with no more than two dispensaries allowed on either side of Grand Street. During the City Council’s public deliberations, both Park Street and Webster Street commercial corridors were specifically identified by the City Council as appropriate locations for dispensaries in Alameda. With one dispensary already approved on Webster Street, the City then issued a second RFP for the remaining three cannabis retail dispensary spots.
In December 2019, the applicant was one of the three RFP respondents to be awarded the privilege to seek approval for their proposed dispensary at 1222 Park Street. If approved, this use permit will be for the first of two retail dispensaries on the east side of Grand Street. A second dispensary application is also located in the Park Street business district at 2416 Lincoln Avenue, but the application is currently incomplete and will be brought to the Planning Board for consideration in the near future.
Approval Process for a Dispensary
The AMC requires commercial cannabis businesses to obtain both a Use Permit and an Operator’s Permit in order to lawfully operate within the City. The use permit is a discretionary permit, where the Planning Board may establish conditions of approval with respect to maintenance and operation of the cannabis business to ensure that the project meets the purposes of the Zoning Ordinance and AMC Section 6-59.1 et seq. After receiving approval of a use permit, the applicant must also obtain an Operator’s Permit, which is issued at a staff level and primarily reviewed by the Alameda Police Department. The Operator’s Permit is issued and remains in good standing upon a determination that the applicant has met all the standards specified in AMC Section 6-59, including the following:
1. Compliance with all applicable law, i.e., state and local requirements, including conditions of approval established by the Planning Board
2. Compliance with Operational Radius Guidelines
3. Systems for Air Quality, Odor Control, and Ventilation
4. Security Measures (including a Security Guard)
5. Provision of Alarm Systems
Pursuant to AMC Section 6-59.4(a), the Operator’s Permit is specific to the location where the cannabis business is permitted to operate, and is a conditional privilege to conduct activities set forth in the permit. The Operator’s Permit is not transferrable, and unlike a use permit, does not run with the land.
Subsequent Regulatory Approvals
In addition to a use permit and Operator’s Permit, the project must meet other requirements, including building permits for the interior tenant improvements to the building, business license, labor peace agreement or declaration, etc. Finally, the applicant will also need to obtain and maintain in good standing a “Type-10 (Dispensary; General)” license from the State Bureau of Cannabis Control prior to beginning operations.
DISCUSSION
Existing Site and Surrounding Uses
The project site is an existing commercial building located on the 1200 block of Park Street within the C-C-T (Community Commercial, Theatre Combining) zoning district. The building is approximately 4,000 square feet in size and has a vacant 2,550 square foot commercial space at the front of the building, and a single residential unit at the back of the building. The commercial space was most recently occupied by The Red Onion restaurant. The property has a curb cut onto Park Street and a driveway that provides access to one parking space for the residential unit at the rear of 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. All other adjacent properties are located within the C-C-T zoning district. The Alameda Athletic Club is directly north of the project site. Another mixed use building is directly south of the project site, which has a liquor store in the commercial tenant space along Park Street and a residential unit at the rear of the building. The parking lot for the liquor store is directly adjacent to the project site. There are several similar mixed use buildings directly west of the project site, across Park Street. These properties each have small retail, personal service and restaurant businesses along Park Street and one to two dwelling units at the rear of each building.
Proposed Operation
The applicant proposes using the 2,550 square foot commercial tenant space for the retail cannabis dispensary and off-site delivery. The use does not include facilities for on-site consumption. (Exhibit 1).The applicant has provided a letter describing the operation of the proposed Cannabis Retail Dispensary (Exhibit 2).
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.
Exterior modifications to the building are limited to repairing the existing tile bulkhead, replacing the front door, window screening, and changing business signage. Due to the historic designation of the building and to be consistent with AMC Section 30-37.2 (Design Review Exemptions), conditions of approval ensure that the replacement tiles and the new front door are in-kind replacements.
The new signs will be processed under a separate permit. The building’s historic survey, conducted in 1990, identified the signs as a character-defining historic feature, Therefore, current signage, as well as previous tenant’s signs, has been designed to match the original signage for the building. The proposed signs will also be required to match this style of signage.
Land Use Compatibility
Cannabis Business Regulations prohibit location of cannabis businesses within specified distances of sensitive uses. Specifically, dispensary/delivery businesses shall not locate within a 1,000-foot walking distance door-to-door of a public or private school providing instruction in kindergarten or any grades 1 through 12. Additionally, such uses shall not locate within a 600-foot walking distance door-to-door of a youth center, tutoring center, or day care center. The project location at 1222 Park Street is in compliance with these operational radius requirements.
From a land use compatibility perspective, the cannabis retail dispensary is similar to other retail and service oriented businesses in the C-C-T zoning district, such as a pharmacy or the building’s previous restaurant use. Commercial activity for a cannabis retail dispensary, pharmacy or restaurant all operate similarly; customers visit the business to purchase a product or conduct business. Therefore, the nature of a cannabis retail dispensary does not raise land use compatibility issues in the C-C-T zone.
Conditions of Approval/Good Neighbor Policies
“Good Neighbor Policies” have been used by other California cities when permitting cannabis retail dispensaries, and were imposed by the City Planning Board as conditions of approval for the City’s first dispensary at 1528 Webster Street. Following this precedent, the applicant has worked with staff to establish a similar set of “Good Neighbor Policies” for this dispensary (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 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 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 coordinate with the Downtown Alameda Business Association (DABA) and the City’s Planning Division on the design of screening for all public facing windows to obscure view of cannabis products and advertisements. Any changes to the interior floor plan shall be submitted for review by the City for conformance with this condition.
Operator’s Permit Standard Requirements
One condition of approval for a use permit is compliance with all applicable laws, including the Cannabis Business Regulations and all conditions in the Operator’s Permit, which prescribes specific requirements for certain 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 Operator’s 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 supervise the day-to-day operations and be available 24-hours a day as 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 historical “downtown districts,” and as a result, most properties in the C-C zoning districts were developed without any off-street parking. Therefore, General Plan policy and Zoning regulations for the C-C zone emphasize pedestrian retail and service uses on the ground floor.
Park Street is a main corridor in Alameda for AC Transit; the 51A, 20, 21, and O bus lines travel along Park Street, or have stops within a quarter mile walking distance, and provide transit access between the main island and the 12th Street and Fruitvale BART stations, along with other regional transit connections in downtown Oakland. Per AMC Section 30-7.2(d), when approving a conditional use permit, the Planning Board may impose measures that will reduce the parking demand of the project and other mitigation measures. Consistent with prior Use Permit approvals within commercial retail areas, staff recommends requiring the applicant fund the City’s purchase and installation of two bicycle racks on Park Street. Staff also recommends requiring the applicant join the Alameda Transportation Management Association (ATMA) to provide all full-time and part-time employees with transit passes. The ATMA is the Transportation Demand Management (TDM) program specifically established to reduce parking and vehicular travel demand under AMC Section 30-7.13. Staff believes the location of the business on Park Street, which is well-served by public transit, and the combination of requiring the business to join the ATMA and fund the purchase and installation of two bicycle racks would effectively reduce parking demand.
Conclusion
In conclusion, staff recommends that the Planning Board approve Use Permit PLN20-0164 based on the findings in the draft resolution (see Exhibit 4). The proposed conditions of approval include Good Neighbor Policies to minimize potential impacts on the surrounding neighborhood. These conditions of approval are in addition to other standards required under AMC Section 6-59.10 for an Operator’s Permit, which the applicant must obtain to operate a cannabis retail dispensary at the project site.
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 Sections 15301 for the operation, permitting or leasing of existing private structures involving negligible or no expansion of use beyond that which exists, and 15183 for projects that are consistent with the General Plan and Zoning, each as a separate and independent basis.
RECOMMENDATION
Staff recommends the Planning Board hold a public hearing and adopt the Draft Resolution approving a Use Permit for a Retail Cannabis dispensary with off-site delivery at 1222 Park Street.
Reviewed By:
Andrew Thomas
Planning, Building and Transportation Director
Exhibits:
1. Project Plans
2. Operation Narrative from Applicant
3. Good Neighbor Policies
4. Draft Resolution