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HomeMy WebLinkAbout2016 01 20 AIS WS PC Marijuana Land Use Regs12016AGENDA ITEM SUMMARY Meeting Date: 1/20/2016 Meeting Type: Work Session Staff Contact/Dept.: Greg Mott, DPW Jim Donovan, DPW Staff Phone No: 541-726-3774 Estimated Time: 30 Minutes S P R I N G F I E L D PLANNING COMMISSION Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: Work session discussion of draft land use regulations for recreational marijuana activities including production, manufacturing, wholesale and retail sales. ACTION REQUESTED: Review of draft code proposal incorporating discussion from previous work sessions and recommend scheduling of public hearings prior to a Planning Commission recommendation to City Council. ISSUE STATEMENT: The City Council directed the Planning Commission to develop draft land use regulation of the production, manufacture, wholesale and retail sales of recreational marijuana for Council deliberation and action in early 2016. The Commission held work session discussions of this subject on December 15, 2015 and December 22, 2015. Staff has incorporated Commission feedback into the latest draft code language for Planning Commission consideration. ATTACHMENTS: Attachment #1: Council Briefing Memorandum with Draft Code Language DISCUSSION: The Council conducted a work session on 11/9/15 to begin consideration of new land use regulation of recreational marijuana activities. The Council generally supported the concept of traditional zoning separation of uses and site development standards, but wanted the Planning Commission to convert these concepts to specific proposals for Council review and possible action in early 2016. The Commission held work session discussions of this subject on December 15, 2015 and December 22, 2015. Staff has incorporated Commission feedback and Council direction into the latest draft code language for Planning Commission consideration. This work session is to consider staff recommendations and determine consensus that the draft code language is suitable for public hearing, testimony and recommendation to the City Council at the earliest convenience. Upon approval the package will be prepared and supplemented for action by the Planning Commission at a public hearing to be held on either February 17, 2016 or March 2, 2016 depending upon state-mandated scheduling standards. Page 1 of 10 DRAFT OF PROPOSED SPRINGFIELD DEVELOPMENT CODE (SDC) AMENDMENTS TO ALLOW MEDICAL AND RECREATIONAL MARIJUANA FACILITIES IN CERTAIN ZONING DISTRICTS (1/20/15) Introduction: This working document contains code language and concepts developed to address the changing regime of state statutes regulating recreational and medical marijuana uses. This document considers Council directions and Planning Commission work session discussions to date. While a full staff report with standard code change findings, work session, public hearing and a recommendation to City Council is forthcoming, this document attempts to identify general consensus on code proposals and highlight code sections where options for PC consideration may still exist. The intent of this document is to provide a basis to move the code package forward in that public process. Staff submits the following in an effort to capture input from the Commission and respond to the PC’s request for a staff proposal on certain items: 1) Proposed zoning code changes to allow medical and recreational marijuana retail outlets, (hereinafter “retail”) under the same heading, in the Community Commercial and Major Retail Commercial Zoning Districts. Special Use Standards are noted and include compliance with state statutes, certain licensing requirements as specified in Chapter 7 of the Springfield Municipal Code, (Ordinance 6324 adopted and effective on July 21, 2014) and specific standards as proposed. Retail sales are not recommended in mixed use or industrial zoning districts for reasons discussed and explained below. 2) Proposed zoning code changes to provide appropriate zoning districts for the remaining three types of marijuana businesses licensed under Oregon Liquor Control Commission as defined and detailed in state statute. Proposals for Specific Development Standards are provided as applicable for compliance with state statutes, local licensing requirements and mitigation of impacts on surrounding properties. 3) Specific Development Standards for each affected zoning district to be detailed in terms of reasonable time, place and manner standards to be consistent with state statute or address identified impacts. The following types of items are proposed to be contained in Subsection 4.7-177 of the code: Buffers and separation standards to protect sensitive uses or areas Reasonable time place and manner regulations for retail uses Mitigation standards for the impacts of industrial uses Annexation and planning review standards 4) Propose non-conforming use protections for existing legal uses. 5) Provide definitions in code for legal uses and other terms. I. The use tables of the Springfield Development Code are proposed to be amended as follows: Attachment 1, Page 1 of 10 Page 2 of 10 3.2-300 Commercial Zoning Districts Commentary. Marijuana retail sales are proposed to be permitted in the Community Commercial (CC) and Major Retail Commercial (MRC) Zoning Districts under Special Use standards as noted below and detailed under Special Use Standards section. Marijuana retail sales are proposed to be prohibited in the Neighborhood Commercial (NC) and General Office Zoning Districts for the following reasons: 1) The NC (Neighborhood Commercial) Zoning District, while listed under “Commercial Districts”, is discussed under the Metro Plan Residential Designation where “neighborhood commercial services” are allowed as auxiliary uses. The SDC limits the NC Zoning District to not more than 3 acres in size consisting of a neighborhood market, hair salon, etc. serving the neighborhood and it is typically surrounded by residential zoning districts. The proposed separation and buffer restrictions proposed in Subsection 4.7-177 below either would be difficult to, or cannot be met. 2) The GO (General Office) Zoning District, which is considered a buffer between more intense commercial uses and residential uses does allow retail uses as a secondary use. However, retail uses are limited to no more than 10 percent of the gross floor area of the office building in which they are sited and are typically serving the primary office uses. If retail sales are to be buffered from residential districts, any separation standards would be virtually impossible to meet. For these reasons, staff proposes that marijuana retail outlets should not be permitted in the GO Zoning District. 3) After PC discussion of zoning principles and the lack of crime statistics to support safety concerns, state licensed commercial daycare businesses are not buffered in this proposal. Proposed text is underlined and highlighted in yellow. 3.2-310 Schedule of Use Categories Commercial Districts Categories/Uses NC CC MRC GO Marijuana Uses (Section 4.7-177) Retail Sales (Recreational or Medical) N S* S* N Note: S* refers to a use that is permitted subject to Special Use Standards, an asterisk denotes site plan review. ******************* Section 3.2-400 Industrial Zoning Districts Commentary. This section addresses several issues identified with production of marijuana, processing of marijuana products or wholesaling of marijuana. Staff research of other jurisdictions, state statutes and code structure leads to the proposal not to permit marijuana dispensaries or retail outlets within industrial zoning Attachment 1, Page 2 of 10 Page 3 of 10 districts as a primary or secondary use. The LMI (Light Medium Industrial) and HI (Heavy Industrial Zoning) Districts do not permit retail uses as a primary use, which includes, but is not limited to: manufacturing; warehousing; and research, development and testing laboratories. While these zoning districts do allow secondary uses serving or related to the primary industrial uses, they are limited to those serving the employees of the primary industrial use. There are no secondary retail uses in these zoning districts. In addition, the SHI (Special Heavy Industrial) Zoning District is located outside of the Springfield city limits and is therefore not eligible for marijuana dispensaries, which are required to be located only within Springfield’s city limits due to the operational requirements contained in the Springfield Municipal Code Chapter 7. The Springfield Municipal Code does not apply outside of the city limits. 3.2-410 Schedule of Use Categories Industrial Districts Use Categories/Uses LMI HI SHI Marijuana Uses (Section 4.7-177) Production Facilities Indoor/Outdoor, Tier I-II Canopy Regulations- See Special Use Standards N S* N Processing Testing or Processing of Products, Concentrates and Extracts- See Special Use Standards S* S* N Wholesale Excludes retail sales- See Special Use Standards S* S* N Retail uses, as a primary or secondary use. N N N Note: S* refers to a use that is permitted subject to Special Use Standards, an asterisk denotes site plan review. 3.2-415 Schedule of Campus Industrial Use Categories Commentary. While the CI (Campus Industrial) Zoning District does allow certain retail uses, these uses are also intended to be secondary to the permitted primary Campus Industrial uses. The purpose of these permitted secondary retail uses is to serve the employees of the CI Zoning District. A retail use will serve customers from all over the metropolitan area and, therefore, is not considered secondary to permitted primary uses specified in SDC Subsection 3.2-415. All other marijuana uses will not meet operational or other standards of the district. Staff proposes adding marijuana dispensaries to the CI prohibited use list. Attachment 1, Page 3 of 10 Page 4 of 10 Prohibited Uses Heavy industrial uses that involve the primary manufacturing of large volumes of raw materials into refined materials including, but not limited to processing from trees to lumber, wood products or paper; from ores to primary metals; and animal or fish processing in packing plants N Any use that cannot meet the operational performance standards specified in Section 3.2- 425 N Any retail uses, unless permitted as a secondary use as specified in Section 3.2-415 N Stand-alone industrial/commercial warehousing, unless permitted as a secondary use as specified in Section 3.2-410 N Mini-warehouse storage facilities N Drive-through facilities N Medical and dental practitioner offices N Marijuana Uses N Motor freight terminals N Moving and storage facilities N Truck and auto repair and painting facilities N Truck and car washes N Gas stations N Motels N 3.4-200 Glenwood Riverfront Mixed-Use Plan District Commentary. Springfield has two sets of mixed-use zoning district. One applies to Glenwood Phase 1 only; the other to the rest of the City. This section addresses the Glenwood Riverfront Mixed-Use Plan Districts. All the zoning in Glenwood Riverfront Mixed-Use Plan District is either Employment Mixed-Use, Commercial Mixed-Use, Office Mixed-Use or Employment Mixed-Use. Any permitted primary uses in these zoning districts were limited to prevent conflicts with retail uses in downtown Springfield or other commercial areas and purposefully create a distinct business environment. Additionally, the purpose of permitted secondary retail uses in Glenwood is to serve either the residents or employees of a building, not the general public. Therefore, marijuana uses would not be allowed as a primary or secondary use in these zoning districts. 3.4-255 Prohibited Uses The following uses are similar in nature to other prohibited retail and industrial uses and shall be added to the list of prohibited uses within the Glenwood Riverfront Mixed-Use Plan District: Marijuana uses. Section 3.2-600 Mixed Use Zoning Districts Attachment 1, Page 4 of 10 Page 5 of 10 Commentary. These mixed use zoning districts are distinct from Glenwood districts, and differ in permitted uses, notably residential uses are allowed under all three districts. Therefore it would be very difficult to regulate any separation between retail or any other marijuana uses and the desired residential uses. For these reasons staff recommends no marijuana uses be permitted in any mixed use district having a residential district. 3.2-610 Schedule of Use Categories Districts Categories/Uses MUC MUE MUR Marijuana Uses Production, Processing, Wholesaling, Retail N N N Section 3.2-200 Mixed Use Zoning Districts Commentary. Marijuana businesses are prohibited in all standard residential districts by state statute, and verified for local compliance prior to the issuance of a license. This code section is intended to be consistent with those statutes. 3.2-610 Schedule of Use Categories Districts Categories/Uses LDR SLR MDR HDR Marijuana Uses (4.7-177) Production, Processing, Wholesaling, Retail N N N N II. The following new Special Use Standards are proposed to be added to Code Section 4.7 as indicated by asterisk in the permitted use tables above: Section 4.7-177 Marijuana Uses Commentary. SDC 4.7-100 currently contains “special use” standards for a number of permitted uses in various zoning districts. These “special use” standards typically involve specific standards designed to control location or mitigate impacts of a use on surrounding properties. The following proposed Subsection provides specific standards for permitting marijuana uses consistent with statutory regulations, Springfield Municipal Code and as recommended or requested for consideration by City Council or the Planning Commission. Attachment 1, Page 5 of 10 Page 6 of 10 A. Retail marijuana outlets shall be: 1. Licensed or registered and operated in accordance with Oregon Revised Statutes and applicable Oregon Administrative Rules. 2. Licensed and regulated as specified in Chapter 7 of the Springfield Municipal Code; 3. Located on and take access from an arterial or collector street; and 4. Fully contained in a permanent building in the Community Commercial or Major Retail Commercial Zoning Districts. 7. Prohibited in any district except CC and MRC. B. Where permitted by this Code, retail facilities shall not be located: Commentary. The following section is designed to be consistent with state statutes and recommendations or requests for consideration by the Planning Commission or City Council. 1. At the same address as another licensed or registered marijuana business; 2. Within 1,000 feet of the real property comprising a public or private elementary, secondary or career school attended primarily by minors (“within 1,000 feet” means a straight line measurement in a radius extending for 1,000 feet or less in every direction from any point on the boundary line of the real property comprising an existing public or private elementary, secondary or career school primarily attended by minors); 3. Within 1,000 feet of another retail outlet (“within 1,000 feet” means a straight line measurement in a radius extending for 1,000 feet or less in every direction from any point on the boundary line of the real property compromising a retail outlet); Commentary. The following proposed standards are not listed in statute; the intent was to provide additional protection of children. See the Cole Memorandum1. Staff reviewed adopted or proposed medical marijuana dispensary zoning regulations from Ashland, Beaverton and Salem and found that they addressed parks, pre- 1 In a memorandum to all United States Attorneys dated August 29, 2013, James M. Cole, Deputy Attorney General distributed information on Guidance Regarding Marijuana Enforcement. The memorandum states in part: “…the Department (Justice Department) in recent years has focused its efforts on certain enforcement priorities that are particularly important to the federal government…. Preventing the distribution of marijuana to minors…. The Department’s guidance in this memorandum rests on tis expectation that states and local governments that have enacted [and/or are proposing to] laws authorizing marijuana-related conduct will implement strong and effective regulatory and enforcement systems that will address the threat those state laws could pose to public safety, public health, and other law enforcement interests….” The Oregon Legislature has adopted Medical Marijuana regulations enacted by Senate Bill 1531 Attachment 1, Page 6 of 10 Page 7 of 10 schools and certified day care facilities. See Medical Marijuana Dispensaries – Other City Comparisons. Staff originally proposed 1,000 feet of separation between parks, pre-schools and certified day care centers. However, based upon input from the marijuana industry representatives (250 foot from parks) and the 100O foot buffer initially discussed, the 500 foot proposal represents a compromise of buffering. Pre-schools and day care facilities located in residential zoning districts will be addressed in the proposed residential setback locational standard below. 4. Within 500 feet of parks where minors congregate (“within 500 feet” means a straight line measurement in a radius extending for 500 feet or less in every direction from any point on the boundary line of the real property compromising a retail outlet); and Commentary. Setbacks from residential zoning districts. These standards are not listed in statute; the intent is to provide additional protection of children. This topic was initially discussed with City Council during review of regulations amending the Springfield Municipal Code to regulate licensing medical marijuana dispensaries in the City. A number of options were mentioned from 1,000 feet to 100 feet and possible distanced in between. Staff reviewed adopted, or soon to be adopted, medical marijuana dispensary zoning regulations from Ashland, Beaverton and Salem regarding setbacks from residential zoning districts. Staff found Ashland proposed a 200 foot setback, Salem proposed a 100 foot setback and Beaverton has no setback. Please note that when zoning was first applied along Main Street, commercial zoning included a 200 foot-wide swath that created a number of lots that were split zoned Community Commercial and residential. The linear pattern of Main Street also would prohibit the establishment of any medical marijuana dispensaries in this area if a 1,000 or even 200 foot setback was to be imposed. Staff prepared maps showing a proposed 50 foot and 100 foot setback from residential properties along Main Street and in other areas of Springfield where Community Commercial and Major Retail Commercial zoning occurs for review of Council and Planning Commission. Based upon input from Council, the Commission and initial feedback from marijuana industry representatives, a 50 foot setback was proposed. The 50 foot option should cover all residential pre-schools and day care facilities in the residential zoning districts and ensure that no retail outlet is located immediately adjacent to a residential zone. No separate setback for commercial day care facilities is proposed. 5. Within 50 feet of any residential zoning district (“within 50 feet” means a straight line measurement in a radius extending for 50 feet, including public right-of-way, in every direction from any point of the property containing a registered medical marijuana dispensary). C. Additional Retail Regulations. A marijuana retail outlet shall: 1. Not have a drive-up window; 2. Not operate from any temporary facility in any zone. 3. Provide for secure disposal of marijuana remnants or by-products, which shall not be placed within the businesses exterior refuse containers. 4. Not include outdoor storage of merchandise, raw materials, or any other material associated with retail sales. 5. Preclude any use of products on site unless expressly exempted by state statute. 6. Not be allowed as a home occupation in any zone. (2014) which grants Springfield the authority to adopt ordinances within the city limits that impose reasonable regulations on the operation of medical marijuana facilities registered under ORS 475.314 that are consistent with the latest directive. Attachment 1, Page 7 of 10 Page 8 of 10 Commentary: The following proposed Subsection provides specific standards for permitting production, processing or wholesale marijuana uses consistent with statutory regulations, Springfield Municipal Code and as recommended or requested for consideration by City Council or the Planning Commission. D. Industrial Uses Commentary: Discussions with the Planning Commission of characteristics related to production identified a need for reasonable operating and location conditions designed to mitigate olfactory impacts related to outdoor and indoor grow operations. The state defines two tiers of canopy sizes for indoor and outdoor grows under Production licenses: Indoor Production Outdoor Production Tier 1- Up to 5,000 square feet Tier 1- up to 20,000 square feet Tier II- 5001-10,000 square feet Tier II- 20,001-40,000 square feet Considering the potential olfactory impacts related to both indoor and outdoor production and other site design characteristics required for site plan and MDS approval the following special standards are proposed by staff for production within the Heavy Industrial District: State Licensed Production Facilities 1. Indoor Production facilities licensed by the State of Oregon as a Tier 1 operation shall be located within a permanent structure on a lot no smaller than 1 acre in size, shall not be located within 500 feet of any zoning district allowing residential use, and shall provide a controlled exhaust system with filters designed to significantly reduce or eliminate odors at the property line. 2. Indoor Production Facilities licensed by the State of Oregon as a Tier II operation shall be located within a permanent structure on a lot no smaller than 5 acres in size, shall not be located within 1000 feet of any zoning district allowing residential use, and shall provide a controlled exhaust system with filters designed to significantly reduce or eliminate odors at the property line. 3. Outdoor Production Facilities licensed by the State of Oregon as a Tier I operation shall be located on a lot no smaller than 5 acres in size, shall not be located within 1000 feet of any zoning district allowing residential use, and shall be screened or secured in accordance with state statutes and this code for outdoor storage. Any structure on site used for production purposes shall provide a controlled exhaust system with filters designed to significantly reduce or eliminate odors at the property line. 4. Outdoor Production Facilities licensed by the State of Oregon as a Tier II operation shall be located on a lot no smaller than 10 acres in size, shall not be located within 1000 feet of any zoning district allowing residential use and shall be screened or secured in accordance with state statutes and this code for outdoor storage. Any structure on site used for production purposes shall provide a controlled exhaust system with filters designed to significantly reduce or eliminate odors at the property line. Attachment 1, Page 8 of 10 Page 9 of 10 Commentary: Discussions with the Planning Commission of the known characteristics related to processing identified a need for reasonable operating conditions designed to mitigate impacts related to the most intense processing operations, notably extraction with butane or other chemicals. State Licensed Processing Facilities 1. State licensed processing facilities performing testing, including marijuana laboratories, processing, or manufacture of edibles or concentrates shall be located within LMI or HI Districts and be completely enclosed within a permanent structure provide with a controlled exhaust system with filters designed to significantly reduce or eliminate odors at the property line. 2. State licensed processing facilities processing cannabinoid extracts shall be located within HI Districts, shall be located 500 feet from any district allowing residential use and be completely enclosed within a permanent structure provide with a controlled exhaust system with filters designed to significantly reduce or eliminate odors at the property line and shall be subject to Type II Site Plan Review. Commentary: Discussions with the Planning Commission of the known characteristics related to production identified a need for reasonable operating conditions designed to mitigate olfactory impacts related to outdoor and indoor grow operations. State Licensed Wholesale Facilities 1. No retail sales shall be permitted from any wholesale marijuana distribution facility. 2. No outdoor storage of any materials shall occur at a wholesale marijuana distribution facility. Commentary. The intent of the Subsection below is to not penalize retail marijuana dispensaries that have been: 1) approved prior to these proposed amendments; or 2) if a school, park or another protected use locates within a proposed locational standard area after a marijuana business has been approved under these proposed regulations. E. The siting of a future school, daycare or park use that affects a licensed marijuana business existing at the time of the siting, shall not make the existing marijuana business in violation of the locational standards specified in Subsection B., nor shall it be grounds to refuse to renew a license. F. In the event that a licensed or registered marijuana business is existing on [INSERT EFFECTIVE DATE OF ORDINANCE HERE], that existing use is allowed to continue as approved. In the event a marijuana use is unoccupied, discontinued or unlicensed for 6 months or more after the above date, it shall be subject to the non-conforming use standards of Section 5.8-100 of this code. Attachment 1, Page 9 of 10 Page 10 of 10 Commentary. In addition to meeting the proposed locational standards, establishment of marijuana businesses will require the following applicable planning review process. All marijuana businesses are required to be located on properties annexed to the City of Springfield to allow enforcement and licensing as prescribed by the Springfield Municipal Code, and all businesses permitted under this code are considered urban uses and are not permitted in the UF/10 Overlay District. G. Planning Review. 1. When the proposed marijuana business is a change of use in an existing building, Minimum Development Standards (MDS) as specified in Section 5.15-100 will apply. 2. When the facility is proposed in a new building, Site Plan Review standards as specified in Section 5.17-100 will apply. 3. MDS or Site Plan Review approval by the Director will require, in addition to any other conditions of approval, a copy of the state license or registration and a copy of the Springfield medical marijuana facility business license. These documents shall be required prior to occupancy. 4. All marijuana businesses allowed under this code shall occur on properties inside city limits. Commentary. The statutory definitions of medical and recreational uses consistent with Chapter 7 of the Springfield Municipal Code will be inserted prior to public review. Section 6.1-110 Meaning of Specific Words and Terms Marijuana Uses Definitions consistent with state statutes shall be reviewed by the City Attorney and inserted here. Attachment 1, Page 10 of 10