Title
PLN22-0425 - Administrative Use Permit - 2300 North Loop Road - Applicant: Caren Woodson on behalf of Kiva Confections. Public hearing to consider an administrative use permit to allow the manufacture of cannabis products at an existing cannabis products distribution warehouse. Previously the City approved an Administrative Use Permit to allow the existing distribution warehouse with a condition of approval that prohibited the on-site manufacturing of cannabis products. The applicant is requesting approval to permit small scale manufacture of cannabis products with no exterior impacts from noise, sound or odors.
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CITY OF ALAMEDA
PLANNING, BUILDING AND TRANSPORTATION DEPARTMENT
ADMINISTRATIVE USE PERMIT
PROJECT
DESCRIPTION: PLN22-0425 - Administrative Use Permit - 2300 North Loop Road - Applicant: Caren Woodson on behalf of Kiva Confections. Public hearing to consider an administrative use permit to allow the manufacture of cannabis products at an existing cannabis products distribution warehouse. Previously the City approved an Administrative Use Permit to allow the existing distribution warehouse with a condition of approval that prohibited the on-site manufacturing of cannabis products. The applicant is requesting approval to permit small scale manufacture of cannabis products with no exterior impacts from noise, sound or odors.
GENERAL PLAN: Business + Employment
ZONING: C-M-PD, Commercial Manufacturing Zoning District, Planned Development Combining District
ENVIRONMENTAL
DETERMINATION: The project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301 - Minor Alteration of Existing Facilities
PROJECT PLANNER: David Sablan, Planner
PUBLIC NOTICE: A notice for this hearing was mailed to property owners and residents within 300 feet of the site, published in the local newspaper of general circulation and posted in public areas near the subject property. Staff has not received any public comments on this proposed project.
EXHIBIT(S): 1. Project Plans
RECOMMENDATION: Approve the project with conditions.
PROJECT SUMMARY:
On July 20, 2020 the City approved an Administrative Use Permit to allow the operation of a distribution facility for cannabis products in the existing 32,000-square-foot warehouse building at 2300 North Loop Road (PLN20-0198). Cannabis businesses are required to obtain two separate permits from the City prior to operating within the City, an administrative use permit and a Cannabis Business Operator’s Permit (CBOP). Under Alameda Municipal Code (AMC) Section 30-10.1.c the proposed use qualifies as a “Cannabis industry” use, which requires the approval of an Administrative Use Permit in the C-M-PD Zoning District. Such a permit may be approved by the Zoning Administrator, pursuant to AMC Section 30-10.1(f)2.
The applicant has been using the site as a distribution warehouse for cannabis products manufactured off-site. Cannabis product manufactured off-site is stored at the project site while state mandated testing is conducted on samples at a state licensed testing facility. Once the cannabis products have been cleared by the testing facility they are distributed to state licensed cannabis dispensaries. The applicant has recently expanded operations to include small-scale R&D manufacturing of cannabis products on-site. This current R&D manufacturing does not produce cannabis products for retail sales. The applicant is requesting a modification to their previous use permit approvals to permit on-site cannabis product manufacturing for off-site retail sales. Per AMC Section 6-59.4 the applicant will require a Manufacturer Permit 1 CBOP, which is for the manufacture of cannabis products using nonvolatile or no solvents.
The project site is in the middle of the Harbor Bay Business Park and is surrounded on all sides by a mix of office buildings and warehousing and light manufacturing land uses. The loading docks are on the side of the building, the transfer of cannabis products between the warehouse and delivery vehicles will not be visible from the public right of way. The applicant is not proposing any exterior modifications to the building.
From a land use perspective, the facility will operate exactly the same as the existing light manufacturing and distribution warehouses in the Harbor Bay Business Park: materials are delivered to the site, cannabis products are manufactured entirely indoors with no off-site noise or odors, stored on-site while undergoing testing, and then delivered wholesale to off-site retailers. The two potential impacts that are unique to a cannabis industry land use are the potential for odor nuisances and site security. All odors must be mitigated through air filtration systems as required through the City’s Operator’s Permit. Also, as part of the Operator’s Permit process a security plan must be reviewed and approved by the Alameda Chief of Police prior to start of business operations.
USE PERMIT FINDINGS:
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.
The location of the proposed use is compatible with other land uses in the general neighborhood area, and the project architecture, aesthetics, and operations are harmonious with the community and surrounding development, especially since no exterior modifications to the building or site improvements are proposed. The proposed land use is light manufacturing and wholesale/distribution, the same as many existing businesses in the Harbor Bay Business Park. All business activity conducted on-site is wholesale.
2. The proposed use will be served by adequate transportation and service facilities, including pedestrian, bicycle and transit facilities.
The project site is located on a fully developed site within the Harbor Bay Business Park and does not require additional service facilities on-site. The property has an existing parking lot which is adequate to meet the demands of the business. The surrounding business park’s roads have been fully developed to accommodate vehicle traffic necessary to service use of the site. Funding for neighborhood traffic facility upgrades, such as new traffic lights at nearby intersections, are in place and plans are being developed for their construction.
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.
The proposed use with all conditions, will not adversely affect property in the vicinity and will not have substantial deleterious effects on existing business districts or the local economy. The project, through the conditions of approval of this use permit and subsequent Cannabis Business Operators Permit, will be required to install air filtration systems to address potential odor nuisances. The subsequent Operator’s Permit also requires the applicant’s security plan be reviewed and approved by the Alameda Police Department. Violations of the conditions herein or of the general conditions in AMC Sections 6-59.10 and 6-59.11a., as amended, are grounds for the City to take enforcement action, including the issuance of administrative citations, and to revoke or modify this use permit.
4. The proposed use relates favorably to the General Plan.
The project utilizes an existing light industrial building within the Business and Employment land use area. The project relates favorably to General Plan Land Use Policy LU-12, which calls for the protection and preservation of Business and Employment designated areas by prohibiting introduction of residential uses and discouraging the rezoning of property in these areas to allow residential use. Implementation of standard measures required as conditions of approval of this use permit will minimize potential nuisance and ensure that the use is compatible with surrounding properties.
1. Approved Uses: This Administrative Use Permit (PLN22-0425) supersedes the previously approved use permit for this property (PLN20-0198). This Administrative Use Permit approves the storage and wholesale distribution of cannabis products within the existing warehouse, and the manufacture of cannabis products using nonvolatile or no solvents, subject to all other applicable regulatory permits, building permits, and licenses. This use permit expressly prohibits onsite retail sales.
2. Hours of Operation: Deliveries shall not be accepted between the hours of 10:00 PM and 7:00 AM.
3. Compliance with Plans: Any modification of this site shall be in substantial compliance the plans submitted May 18, 2020, drawn by Nutraceutical Facility Solutions, on file in the City of Alameda Planning, Building, and Transportation Department, except as modified by the conditions listed in the accompanying resolution.
4. Compliance with All Applicable Laws: Applicant must comply with all applicable laws (as amended), including without limitation, the AMC provisions applicable to the project (including but not limited to AMC Sections 6-59 and 30-10) generally or the use or operation of the project site in particular (commercial cannabis activity), any implementing regulations adopted by the City (as amended), and State law and regulations governing cannabis (as amended), all of which is incorporated by this reference. And, specifically, the applicant must comply with the following:
a. Cannabis Business Operators Permit (Operators Permit): The applicant/operator must obtain and maintain an Operators Permit that is in compliance with AMC Section 6-59.10 et seq. (as amended)
b. Security/Lighting Plan: The security plan shall include a lighting plan that ensures adequate lighting for exterior areas outside the premises to the satisfaction of the City, and shall show compliance with subsections (c) and (f) of AMC Section 30-5.16(Performance Standards for New Buildings and Uses) to the satisfaction of the Planning, Building and Transportation Director.
c. Odor Control: Prior to commencing on-site manufacturing the applicant shall install equipment for odor control, filtration, and ventilation system(s) to control odors, humidity, and mold so that odor generated inside the property is not detected outside the property, anywhere on adjacent property or public rights-of-way. All components of the commercial cannabis activity shall comply with the requirements of the Bay Area Air Quality Management District. An odor detected no more than fifteen (15) minutes in one (1) day is acceptable.
d. Business License. Obtain a Business License and timely pay all applicable fees from the Alameda Finance Department.
5. Compliance with Conditions: Failure to comply with any conditions stated herein may result in issuance of a citation and/or modification, suspension, or revocation of the Use Permit. Upon receipt of three valid complaints due to business operations in violation of AMC Section 6-59.10 or these conditions of approval all commercial cannabis activities shall cease until a revocation hearing is conducted by the Planning Board.
6. Revocation: This Use Permit may be modified or revoked by the Planning Board, pursuant to AMC Section 30-21.3 should the Planning Board determine that: 1) the use or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity; 2) the property is operated or maintained so as to constitute a public nuisance; or 3) the use is operated in violation of the conditions of the Use Permit.
7. Hold Harmless: To the maximum extent permitted by law, the applicant (or its successor in interest) shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City of Alameda, its City Council, City Planning Board, officials, employees, agents and volunteers (collectively, “Indemnitees”) from and against any and all claims, actions, or proceedings against Indemnitees to attack, set aside, void or annul an approval by Indemnitees relating to this project. This indemnification shall include, but is not limited to, all damages, losses, and expenses (including, without limitation, legal costs and attorney’s fees) that may be awarded to the prevailing party arising out of or in connection with an approval by the Indemnitees relating to this project. The City shall promptly notify the applicant of any claim, action or proceeding and the City shall cooperate in the defense. The City may elect, in its sole discretion, to participate in the defense of said claim, action, or proceeding and the applicant (or its successor in interest) shall reimburse the City for its reasonable legal costs and attorneys’ fees.
8. Vesting: This use permit shall terminate one (1) year from the date of its granting, unless actual construction or alteration, or actual commencement of the authorized activities, has begun under all required, valid permits or approvals within such period, including without limitation the granting of a regulatory permit pursuant to Article XVI (Cannabis Businesses) of Chapter VI (Business, Occupations, and Industries) of the Alameda Municipal Code (AMC), hereafter referred to as the Cannabis Business Operators Permit. Pursuant to AMC Section 30-10.1(l), the applicant may seek a one-time one (1) year extension to the use permit for good cause by filing a written request to the Planning Director along with applicable filing fees but may only do so no earlier than sixty (60) days prior to expiration of the initial one (1) year term.
Environmental Determination
The Zoning Administrator finds that the 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.
Use Permit
The Zoning Administrator hereby approves the Administrative Use Permit with conditions.
The decision of the Zoning Administrator shall be final unless appealed to the Planning Board, in writing and within ten (10) days of the decision.
Approved by: Date: September 19, 2022
Allen Tai, Zoning Administrator