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HomeMy WebLinkAboutOrd 1329 - ZOA 17-027 Cannabis Use and RegulationsREQUEST: Ordinance No. 1329 CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT CONSIDERATION TO ADOPT A ZONING ORDINANCE AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE SECTION 25.34.120 CANNABIS USE AND REGULATIONS AND CHAPTERS 25.16 COMMERCIAL AND INDUSTRIAL DISTRICTS AND 25.18 DOWNTOWN DISTRICTS TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ESTABLISH PALM DESERT MUNICIPAL CODE SECTION 5.101 COMMERCIAL CANNABIS REGULATORY PERMITS SUBMITTED BY: Eric Ceja, Principal Planner APPLICANT: City of Palm Desert CASE NO.: ZOA 17-027 DATE: August 24, 2017 CONTENTS: 1. Planning Commission Resolution No. 2706 2. Planning Commission Meeting Minutes — August 1, 2017 3. City Council Ordinance No. 1329 ; approving changes to the City's Municipal Code 4. Exhibit A— Section 25.34.120 Cannabis Use and Regulations 5. Exhibit B — Chapter 25.16 Commercial and Industrial Districts 6. Exhibit C — Chapter 25.18 One Eleven Development Code 7. Exhibit D — Section 5.101 Commercial Cannabis Regulatory Permits 8. Potential Cannabis Locations Map 9. The Desert Sun Legal Notice Recommendation Waive further reading and pass Ordinance No. 1329 , approving amendments to the City's Municipal Code as described in Exhibits A, B, C, and D, allowing commercial cannabis businesses within the City, subject to certain separation and operational requirements and a Conditional Use Permit. Strategic Plan Objectives Envision Palm Desert — Forward Together is the foundational document used to establish a guiding vision for the City and sets priorities to nine strategic areas of focus. These municipal code amendments which will allow commercial cannabis businesses in the City of Palm Desert, subject to review and approval of a Conditional Use Permit (CUP), execute the following principles of the Strategic Plan: Staff Report ZOA 17-027 Cannabis Page 2 of 6 August 24, 2017 Ordinance No. 1329 1. Economic Development Priorities: "Expand job and business creation opportunities." 2. Energy and Sustainability Priorities: "Promote greater usage of more sustainable materials." The proposed ZOA accomplishes these goals by expanding retail opportunities to an emerging cannabis industry, expands the retail tax base and supports Palm Desert's financial stability, and promotes sustainability by requiring energy and water assessments for cannabis cultivation operators. Executive Summary Approval of staff's recommendation would approve an update to the City's municipal code to allow for commercial cannabis businesses in certain zoning districts, subject to separation requirements and approval of a CUP. The ordinance reflects the State's provisions of the Medicinal and Adult Use of Cannabis Regulations and Safety Act (MAUCRSA), and recommendations of the ordinance have been reviewed and studied by the City's Ad Hoc Cannabis Committee. Planning Commission Recommendation The City's Planning Commission held a public hearing to consider the amendments to the Zoning Ordinance at their meeting of August 1, 2017. The Planning Commission voted 3-1- 1 (Chair DeLuna voting no and Commissioner Holt absent) in adopting a resolution recommending approval to the City Council. Chair DeLuna advocated that the 600-foot radius applied to schools (K-12) should also apply to higher education facilities since some students are under the age of 21. However, after much discussion, the Commission did not support the expanded radius citing that bars and alcohol establishments are located adjacent to the same facilities. Background In February 2016, the City Council directed staff to establish a Cannabis Committee to review criteria for medical marijuana delivery operators. The Committee is comprised of two Councilmembers, a Planning Commissioner, a cannabis delivery operator, a medical doctor, and Code Compliance staff, the Police Department, and Planning Division staff. The Committee met several times during 2016, and ultimately decided not to recommend any land use regulation until voters weighed in on Proposition 64. On November 8, 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act (AUMA). This proposition allows adults over the age of 21 to use marijuana for recreational purposes under certain conditions. The AUMA also permits residents to grow up to six plants on their property, and allows local jurisdictions to retain local control and establish individual land use restrictions. Following the passage of the AUMA on January 26, 2017, the City Council took action and directed Planning staff to meet with the Cannabis Committee to draft and review a new Staff Report ZOA 17-027 Cannabis Page 3 of 6 August 24, 2017 Ordinance No. 1329 ordinance to regulate commercial cannabis operations in the City of Palm Desert, with the general direction being cautiously open to the industry based on the passage of AUMA. The Committee met several times over the past few months to review language for a new ordinance, and to discuss the limitations and regulations imposed on operators. In June of this year, the Committee recommended moving the draft ordinance through the public hearing process. Project Description If approved, Section 25.34.120 of the Palm Desert Municipal Code will be retitled to Cannabis Use and Regulations. The draft changes reflect the allowance of both medicinal and adult use of cannabis in accordance with the Medical Cannabis Regulations and Safety Act (MCRSA) and the AUMA approved by the California voters, now named the Medicinal and Adult -Use Cannabis Regulations and Safety Act (MAUCRSA). The City's ordinance will allow for limited retail cannabis uses within the city's commercially zoned property, testing facilities within the city's Service Industrial and Office Professional zoned properties; and limited cultivation, manufacturing, distribution, and delivery in the city's Service Industrial zones. Cannabis related businesses associated with retail/dispensaries, cultivation, manufacturing, distribution, and delivery will be subject to a separation requirement of 1,500 feet from other cannabis related businesses, while testing facilities will be subject to a separation requirement of 500 feet from other testing facilities. All cannabis businesses are subject to review and approval of a CUP by the Planning Commission. Commercial cannabis businesses must also meet State guidelines imposed by the Bureau of Cannabis Regulations and are subject to State licensing requirements. No commercial cannabis business may operate without first obtaining a City CUP and a license from the Bureau of Cannabis Regulations. Analysis Adult -Use and Personal Cultivation of Cannabis MAUCRSA permits the adult -use of cannabis, by persons over the age of 21, for recreational purposes. The new law also allows persons over the age of 21 to grow and maintain up to six (6) mature cannabis plants at their residence. The proposed ordinance addresses adult -use by reiterating the State limitations, which prohibit cannabis use within 1,000 feet of a school, day care, or youth center, and restricts cannabis use similar to the restrictions in the City's Smoking Ordinance (P.D.M.C. Chapter 8.36). MAUCRSA allows local agencies to prohibit outdoor cultivation of cannabis plants for personal use at residences; however, local agencies cannot prohibit indoor cultivation. The Committee discussed this particular requirement at length and ultimately recommended that the ordinance permit outdoor personal cultivation citing safety concerns. The ordinance permits outdoor cultivation for personal use and limits cultivation to rear and side yard areas only, and only where not visible from public streets. The ordinance also provides limitations Staff Report ZOA 17-027 Cannabis Page 4 of 6 August 24, 2017 Ordinance No. 1329 for indoor cultivation, including requirements for proper ventilation and prohibits the use of certain flammable solvents, such as kerosene, gasoline, and butane, within the residence. Commercial Cannabis Businesses MAUCRSA establishes the Bureau of Cannabis Regulation as the State agency charged with licensing commercial cannabis operators in the State. The agency has created 20 distinct licensing types of commercial operators and requires that operators obtain a State license prior to operation. These 20 licenses generally fall into six (6) categories: retail dispensary, cultivation, testing, manufacturing, delivery, and distribution. Therefore, the proposed ordinance provides language related to the six (6) categories. The ordinance provides a definition for Commercial Cannabis Business and requires that all Commercial Cannabis Businesses obtain a CUP and State license prior to operation. By applying the CUP process, the Planning Commission will review and vet all cannabis operations prior to permit issuance. All Commercial Cannabis Businesses are limited to specific zoning districts in the City, are required to be separated by 500-1,500 feet, are required to apply best business practices, and must submit supplemental information with the CUP application. Permitted Locations Retail cannabis operations are conditionally permitted in all commercial zoning districts in the City except the Downtown Core Overlay zone. Retail cannabis is similar to other retail operations; therefore, is limited to commercial areas of the City. The ordinance prohibits cannabis businesses from the Downtown Core Overlay zone. Cultivators, manufactures, distributors, and delivery operations are conditionally permitted in the City's Service Industrial (SI) zones only. These businesses are similar to existing light industrial uses in the City; therefore, limited to similar locations. Testing facilities are conditionally permitted in the City's Office Professional (OP) and SI zoning districts. Testing facilities operate similar to other testing and laboratory uses that exist in OP zones. Because testing facilities are more conspicuous and similar to other testing operations, staff believes they are compatible with other professional office operations and should be allowed in similar zones. Separation Requirements The ordinance requires retailers, manufactures, cultivators, deliverers, and distributors to be at least 1,500 feet from another cannabis business. Separation requirements are measured from the outer extents of a business's leased space. In addition, no cannabis business is allowed within 600 feet of a school, day care, or youth center, or on properties abutting a residence or park. The separation requirements ensure that sufficient opportunities for commercial cannabis businesses exist without permitting them to proliferate in a single location or in great numbers. Staff Report ZOA 17-027 Cannabis Page 5 of 6 August 24, 2017 Ordinance No. 1329 Staff is proposing that a 500-foot separation requirement be applied between testing facilities. Testing facilities provide for professional uses similar to existing testing and laboratory uses in the city. Because testing facilities have limited cannabis on site and are more discreet, a reduced separation distance is being proposed. Operational Requirements & Supplemental Application Information The ordinance requires applicants of a CUP to submit additional information for review and to commit to certain operational requirements. The additional application requirements will be presented to the Planning Commission as part of their review and consist of the following: 1. A background check for the applicant and highest ranking employee. 2. Business plan. 3. Exterior facade plan. 4. Open premise agreement. 5. Energy and water supply assessments. 6. A detailed security plan that includes: a. Use of product and inventory tracking software. b. Installation and operation of security cameras. c. Alarm systems monitored by independent third party. d. Product that is securely stored and not accessible to the general public. 7. Access plan and 24-hour emergency contact information. 8. A "community relations" plan notifying other business in the area of their operations. 9. Odor control. 10. Annual State license and City business license renewal. 11. An indemnity agreement. These requirements are in line with State guidelines and best practices employed in the industry. These requirements will be conditions on the business operations and any operator found in violation of these requirements could lose their ability to operate the business by revocation of the CUP. This information is intended to identify legitimate cannabis businesses and ensure a professional and safe operation that is in line with community standards. These additional requirements will be reviewed by the Planning Commission as part of a CUP application. Summary The proposed ordinance provides guidance and regulations for personal use and cultivation and commercial cannabis operations. Commercial operations are subject to approval of a CUP, and are required to be separated by specific distances from parks, residences, and other cannabis businesses. The ordinance will allow the City to establish regulations that are compliant with State law. However, State law is constantly in flux, and staff anticipates amendments to the ordinance over the next few years to keep up with changes in the law. Staff Report ZOA 17-027 Cannabis Page 6 of 6 August 24, 2017 Findings of Approval Ordinance No. 1329 Findings can be made in support of the project, and in accordance with the City's Municipal Code. Findings in support of this project are contained in the Ordinance attached to this staff report. Fiscal Impact There is no fiscal impact associated with the adoption of this Zoning Ordinance Amendment. The future fiscal impact of taxable retail sales or policing of cannabis is unknown at this time. Submitted By: 16 Ceja, Pr ncip I Planner Department Head: Ryan Stendell, Director of Community Development Approval: PLANNING COMMISSION RESOLUTION NO. 2706 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO THE CITY COUNCIL TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 MEDICAL CANNABIS USE TO CANNABIS USE AND REGULATIONS AND SECTION 25.16 COMMERCIAL AND INDUSTRAIL DISTRICTS AND SECTION 25.18 ONE ELEVEN DEVELOPMENT CODE TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL DUALITY ACT CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulation and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised of industry representatives, community members, and City staff, to review a potential cannabis ordinance and to make recommendations for changes to the City's Municipal Code to allow and regulate cannabis businesses; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 1st day of August 2017, hold a duly noticed public hearing to consider changes to the City's Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional Use Permit and certain regulations; and WHEREAS, the requirements established in the ordinance ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to licensing from the State Bureau of Cannabis Control; and WHEREAS, the Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution and laws of the State of California. PLANNING COMMISSION RESOLUTION NO. 2706 B. The California Constitution and Planning and Zoning Laws authorize cities to establish, by ordinance, the regulations imposed on certain business operations and that cannabis businesses can be conditioned and limited in the City. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Municipal Code amendment to Section 25.34.120 Cannabis Use and Regulations and 25.16 Commercial and Industrial Districts, and 25.18 One Eleven Development Code as shown in Exhibit "A", "B" and Exhibit "C" which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. The Director of Community Development therefore, is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Palm Desert, Califomia, at its regular meeting held on the 1st day of August 2017 by the following vote, to wit: AYES: GREENWOOD, GREGORY, and Pradetto NOES: DE LUNA ABSENT: HOLT ABSTAIN: NONE (4ta4V-ti gelk(a NANCY DEILtJNA, CHAIRPERSbN ATTEST: RYAN STE PALM DES Coo- L, SECRETARY PLANNING COMMISSION 2 MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja responded two weeks, which would be the Planning Commission meeting scheduled for August 15. Commissioner Greenwood interjected that he would be interested to have formal comments and review by the ARC in regard to the Monterey Crossing sign design prior to the Planning Commission meeting on August 15. Mr. Ceja replied that the ARC will meet on August 8, and he would add the Monterey Crossing sign design to their agenda. Vice Chair Pradetto moved to, By Minute Motion, continue Case No. ZOA 17-070 to August 15 so City staff could further study the ZOA; and receive formal comments and review by the ARC regarding the design for the Monterey Crossing freeway - oriented monument sign. Motion was seconded by Commissioner Greenwood and carried by a 4-0-1 vote (AYES: DeLuna, Greenwood, Gregory, and Pradetto; NOES: None; ABSENT: Holt). D. REQUEST FOR CONSIDERATION to adopt a resolution recommending approval to the City Council to adopt a Zoning Ordinance Amendment to amend and retitle Palm Desert Municipal Code Section 25.34.120 Medical Cannabis Use to Cannabis Use and Regulations and Sections 25.16 Commercial and Industrial Districts and 25.18 One Eleven Development Code to allow for cannabis businesses within the City, subject to a Conditional Use Permit; and adopt a Notice of Exemption under the California Environmental Quality Act. Case No. ZOA 17-027 (City of Palm Desert, California, Applicant). The Planning Commission was provided with a PowerPoint presentation and an oral interpretation of the staff report by Mr. Ceja (staff report is available at www.citvofoalmdesert.orq). He noted that it has taken City staff over a year to draft the cannabis ordinance due to the constant changes at the State level. Consequently, the Commission may see the cannabis ordinance again in a relatively short time. Staff recommended approval to the City Council of the ZOA for adult -use of cannabis and commercial cannabis operations. He offered to answer any questions. Commissioner Greenwood asked if the definition of commercial also pertains to retail. Mr. Ceja replied that is correct. Commissioner Greenwood inquired if there is a map of the Downtown District Overlay that has been omitted from retail opportunities. He asked where the retail opportunities exist within the City of Palm Desert. 13 G:\Planning\Monica OReilly\Planning Commission \2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja replied that he does not have a map of the Downtown District Overlay. He referred to a map displayed on the screen and pointed to commercial centers in the City that could accommodate a cannabis business. He noted that a cannabis business is not allowed where there is red hatching indicated on the map. Commissioner Gregory asked staff to explain the difference between the orange hatching and the red areas without hatching indicated on the map. Mr. Ceja explained that there a various degrees of development intensity. The orange areas are allowed for mixed -use up to three stories with a mix of commercial, primarily on the ground floor. The orange areas with the hatching are in an edge overlay, which is the transition from multi mixed -use and multi- story down to two stories and primarily residential uses. He said the red areas would allow for three-story mixed -use; predominantly for commercial uses. Chair DeLuna pointed to the plain red areas along El Paseo, and asked if the areas could be retail outlets for cannabis. Mr. Ceja replied yes. Chair DeLuna stated that there are some locations where the City is entertaining mixed -use developments, such as a building with retail on the first floor and residential above. She asked if the building would automatically be exempt from allowing a cannabis business since residential units would be attached to the building. Mr. Ceja responded that the ordinance was written to exempt mixed -use development so the City would not shut down everything on Highway 111 or El Paseo to cannabis if it is part of a mixed -use development. However, you can still have a cannabis business on the ground floor. Chair DeLuna affirmed that there could be cannabis stores along El Paseo. Mr. Ceja responded that staff has seen very high -end cannabis retail operations that could potentially be a good fit for El Paseo. According to State statute, Chair DeLuna asked staff to define a school. In relation to cannabis, Mr. Ceja believed that the State defines a school as K to 12 facilities. Chair DeLuna noted that there are five post -secondary schools in Palm Desert. She asked staff to show her where cannabis retail businesses could possibly be permitted that is within a 600-foot radius of the post -secondary schools. 14 G:\Planning\Monica O Reilly\Planning Commission\2017\Minutes\8-1.17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja referred to the map to show the locations of the post -secondary schools and the potential locations of a cannabis business. Vice Chair Pradetto asked Chair DeLuna if they should intensify the allowable number cannabis dispensaries near the college campuses. Chair DeLuna remarked no. She stated that post -secondary schools have under aged students. However, she would address that issue when they get to the Commissioner's comments. In regard to the people that want to grow marijuana in their backyard, she inquired if the City's Code Enforcement Division would be the enforcing agency. Mr. Ceja replied yes. Chair DeLuna asked if it would require a complaint from a neighbor or interested party for Code Enforcement to check a home for marijuana plants. Mr. Ceja responded that it is not the practice of Code Compliance officers to enter backyards. There would have to be a complaint for Code Compliance to respond. Chair DeLuna commented that day care and youth centers are loosely defined. She asked staff how many day care and youth centers are located within 600 feet of a cannabis retail business. Mr. Ceja replied that he does not have a number of day care or youth centers that would be located within 600 feet of a cannabis business. He reiterated that a cannabis business would not be allowed to be within 600 feet of the centers. Chair DeLuna inquired if day care centers include pre-schools. Mr. Ceja replied that is correct. Commissioner Greenwood said the map indicates a 1,000-square-foot commercial buffer. He asked what the difference is between 1,000 square feet and 1,500 square feet from adjacent dispensaries. Mr. Ceja responded that the red circles on the map indicate 1,000 square feet, and the blue circles) indicate 1,500 square feet. Therefore, essentially fall the red circles would be enlarged to match the blue circles to further limit Commercial cannabis. Chair DeLuna inquired if there were any reasons or thoughts given for allowing retail sales of cannabis along El Paseo. Mr. Ceja replied yes. He explained that there are some smoke shops on El Paseo that seem to fit in perfectly well with El Paseo. Staff also saw other 15 G:\Plannng\Monica OReilly\Planning Commission \2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 cannabis retail operations that could be high -end and specialized and fit in well with El Paseo. The Conditional Use Permit process will ensure that a cannabis retail operation would be an appropriate use on El Paseo. Commissioner Greenwood asked if staff has completed an analysis in regard to looking at the restrictions as it applies to schools, day cares, etc. as well as the 1,500-square-foot radius. He also asked how many dispensaries would be allowed within the 111 Corridor. Mr. Ceja responded that he does not have a number of dispensaries that would be allowed within the 111 Corridor. Due to the definition of a youth center and how broad that is, it has been difficult to identify the location for a dispensary within the 111 Corridor. He noted that the maps with the red circles gave the Cannabis Committee an idea of approximately how many dispensaries could be permitted. Commissioner Gregory voiced that the cannabis ordinance is a living document, and he would not be surprised if there is an amendment. The City has to start somewhere and see what happens. Commissioner Greenwood conveyed he spent a lot of time working on the General Plan Update process. He also sat on the Cannabis Committee. Cannabis is new for a lot of people and there tends to be a little bit of a stigma. He felt that time would show cannabis retail establishments are businesses like any other business and it will go by the wayside. To say that the cannabis ordinance is a living document, the Planning Commission may see some of the restrictions become lesser in the areas along the 111 Corridor. He questioned why they are not opening the 111 Corridor since there is a 1,500-square-foot requirement, the same goes for some of the other areas. Chair DeLuna declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. CHRISTOPHER CRANFILL, Palm Desert, Califomia, stated he is in favor of the cannabis ordinance. However, he is against some of the proposed restrictions. He said restricting anchoring locations is going to create a hole where the City will wind up with cannabis zones. The cannabis zones would create overpriced properties, which will mean mpre buildings that sit empty for a longer period of time. He expressed that synergy is huge. Palm Desert has a huge population, it is the center of the Coachella Valley, and it is the retail center of the Coachella Valley. Palm Desert also created a very good environment and it has very high standards. For those reasons, the cannabis industry would like to see their business in Palm Desert. He stated that cannabis was voted in by the people in California, therefore, it is something that the people want. If the City is concerned with the visibility of cannabis retail businesses, the City should focus on restrictions on what retail locations could look like and enforce how they 16 G:\Planning\Monica OReilly\Planning Commiss,on\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 advertise and present themselves beyond the State regulations. By restricting dispensaries from areas with retail traffic, other local businesses could possibly benefit from the people who would be frequenting dispensaries. He voiced his concern with proposed buffer and the need to have exposure in the marketplace. MR. TOM NOBLE, Palm Desert, Califomia, stated that he has nothing against the cannabis industry. He noted that he provided the Planning Commission with a correspondence prior to the meeting. He voiced his concern with Section F of the proposed ordinance, which states "Commercial Businesses are prohibited from operating on properties that abut public parks, single-family residential properties ..." He stated that abutting means sharing a property line. He does not think the City would want a commercial cannabis business sharing a property line with a single-family residential community or a public park. He noted that most of the ordinances he has seen have a 250-square-foot requirement distance from residential properties. He voiced that the ordinance is far from being voted on and should not be acted upon at this time. With no further testimony offered, Chair DeLuna declared the public hearing closed. Commissioner Gregory was confused with Mr. Noble's remarks in regard to the abutting of facilities to public parks. He asked if the suggested amendments precluded facilities abutting public parks. Mr. Ceja responded that cannabis businesses are prohibited on properties that abut a public park, same for single-family residential properties. He explained that it does not create a numeric distance requirement. He said that there are neighborhoods in very close proximity to Highway 111 and El Paseo; therefore, staff has limited parcels that abut a property line of a single-family residential property. Vice Chair Pradetto commented that he does not know enough about the industry to make an intelligent decision on whether the cannabis ordinance is good compared to everything else that is out there. Secondly, the nature of how fast things are changing, adds another complication. He stated the ordinance could be great, or it could have a gaping hole that the City will not find out until it is put into action. He said he would like to hear from Commissioner Greenwood since he sat on the Cannabis Committee. He would like to know some of the houghts that lead to the draft cannabis ordinance. 1 Commissioner Greenwood commended staff because it has not been an easy process. He said the Cannabis Committee looked where retail and cultivation establishments would be located, and spent a lot of time discussing residential use. He agreed with Commissioner Gregory, the ordinance is a living document and there will be changes made to the ordinance. 17 G:\Planning\Monica OReilly\Planning Commission \2017\Minutes\-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Chair DeLuna shared that the City is breaking new and controversial ground. She believed, out of an abundance of caution and before moving forward to the City Council, the issue of cannabis businesses being in close proximity to the post- secondary education corridor merits further discussion. She stated that the post- secondary schools include kids under the age of 21, and she would like to see the same 600-square-foot exemption included for post -secondary schools. She said the City is trying to enhance the education corridor, attract students, and keep students. Therefore, the City has to guard that area as something unique and different. She voiced that she is also concerned with commercial zones and youth centers, and referred to The First Tee and The Hitting Zone. The two facilities would be Tess than 1,500 square feet of a cannabis business. Chair DeLuna noted that the use of marijuana is still illegal at the federal level. She believed it was prudent to proceed conservatively in accordance with new State laws. There are no current limits set for marijuana consumption and no testing methods to determine the amount of consumption. Therefore, responsibility rests with the City's ordinance. She stated that the City could revisit ordinances and relax them, but it is difficult once an ordinance is in place to constrict. Vice Chair Pradetto disagreed with Chair DeLuna. He stated that bars are not banned near colleges because there are students under 21. Chair DeLuna interjected that the amount of alcohol in a person's system could be tested. Vice Chair Pradetto believed that the State is working on finding a way to determine how much cannabis is in a person's system. He imagined that a cannabis business operator is salivating at the opportunity to be located near a college, and he is sure there are plenty of students that would appreciate having a cannabis business near campus. Commissioner Greenwood remarked that the cannabis dispensaries would be a licensed facility, which would have accountability. Chair DeLuna asked why the ordinance should exclude post -secondary schools from being considered as part of the definition of a school. Commissioner Greenwood commented that staff spent a lot of time looking at case studies. He inquired if srtaff found any research related to Chair DeLuna 's concern with post -secondary schools. Mr. Ceja responded that they did not find any research pertaining to cannabis businesses in close proximity to post -secondary schools. Commissioner Greenwood mentioned that he recently visited the state of Colorado. He stated that he did not see any separation from post -secondary schools. 18 G.\Planning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Commissioner Gregory commented that an effort has been made to distribute possible locations for cannabis dispensaries quite well, with a very conservative approach. As far as post -secondary education, he felt that the concem with younger children is that they might be influenced in a way before they have enough mental capacity to make a wise decision. He stated that a cannabis dispensary would have too much to lose in selling to someone that is underage. Commissioner Greenwood referred to the permit issuance process. He clarified that a cannabis facility could obtain a building permit, but not a Certificate of Occupancy until the license from the State has been issued to the business operator. Mr. Ceja replied that is correct. Following brief discussion pertaining to obtaining permits and post -secondary schools, the Planning Commission referred to the map displayed on the screen. Mr. Ceja pointed to areas where cannabis retail businesses would not be permitted. The Commission questioned the wording "single-family residential properties" under Section F, No. 2. Mr. Ceja proposed that the wording be changed to "private residential properties" which is a broader term than "single-family residential properties." Commissioner Greenwood referred to the area near Sage Lane. He mentioned that the City looked at opportunities to change that area to mixed -use. If it were to happen, could the area ultimately become available for cannabis retail use? Mr. Ceja replied no because the area still has a zoning designation of Downtown Core Overlay. The overlay prohibits cannabis retail use. Chair DeLuna asked if the motion must include the amendment to Section F, No. 2 of the ordinance. City Attorney Jill Tremblay replied yes. Commissioner Greenwood asked what the process is if the ordinance moves , forward to the City Council. Mr. Ceja responded if the Planning Commission approves a recommendation to the City Council, the ordinance would go to a City Council public hearing. It would require two hearings, and then the ordinance goes into effect 30 days after the date of the second hearing. Theoretically, the City could accept Conditional Use Permit applications once the ordinance has gone into effect. Any amendment to the ordinance would have to go back to the Planning Commission. 19 G:\Planning\Monica OReilly\Planning Commission\2017\Minutes\8-1.17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Commissioner Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2706, recommending to the City Council to approve Case No. ZOA 17-027, with an amendment to Section F, No. 2 second paragraph; changing "single-family residential properties" to "private residential properties." Motion was seconded by Vice Chair Pradetto and carried by a 3-1-1 vote (AYES: Greenwood, Gregory, and Pradetto; NOES: DeLuna; ABSENT: Holt). X. MISCELLANEOUS None XI. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION None XII. COMMENTS XIII. ADJOURNMENT With the Planning Commission concurrence, Chair DeLuna adjoumed the meeting at 8:34 p.m. NANCY DE LUNA, CHAIR ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION MONICA O'REILLY, RECORDING SECRETARY 20 G:\Planning \Mon,ca OReilly\Planning Commiss,on\2017\Minutes\8-1-17.docx ORDINANCE NO. 1329 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE SECTION 25.34.120, AND CHAPTERS 25.16 AND 25.18 TO ALLOW COMMERCIAL CANNABIS OPERATIONS IN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ESTABLISH CHAPTER 5.101 COMMERCIAL CANNABIS REGULATORY PERMITS CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised of industry representatives, community members, and City staff, to review a potential cannabis ordinance and to make recommendations for changes to the City's Municipal Code to allow and regulate cannabis businesses; and WHEREAS, the Planning Commission of the City of Palm Desert, Califomia, did on the lst day of August 2017, hold a duly noticed public hearing to consider changes to the City's Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional Use Permit and certain regulations and adopted a resolution recommending approval of the changes to the municipal code to the City Council; and WHEREAS, the requirements established in the ordinance ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to review and approval of a Conditional Use Permit by the Planning Commission; and WHEREAS, the requirements established in this ordinance ensure that cannabis business operate in accordance with State Law and requires that all commercial cannabis operations obtain licensing from the State Bureau of Cannabis Control; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the amendments to Municipal Code Chapters 25.34.120, 25.16, 25.18, and Chapter 5.101, are consistent with the General Plan and applicable state law; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said request: ORDINANCE NO. 1329 NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2. Adoption of amendments to Chapter 25.34.120 "Cannabis Use and Regulations" of the Citv's Zoning Ordinance as identified in Exhibit "A" attached to this Ordinance. SECTION 3. Adoption of amendments to Chapter 25.16 "Commercial and Industrial Districts" of the Citv's Zoning Ordinance as identified in Exhibit "B" attached to this Ordinance. SECTION 4. Adoption of amendments to Chapter 25.02 "Downtown Districts Development Standards" of the Citv's Zoning Ordinance as identified in Exhibit "C" attached to this Ordinance. SECTION 5. Adoption to establish Chapter 5.101 "Commercial Cannabis Regulatory Permits" of the Citv's Zoning Ordinance as identified in Exhibit "D" attached to this Ordinance. SECTION 6. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 7. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061 (b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. At their meeting on August 1, 2017, the Planning Commission adopted a Notice of Exemption under the CEQA guidelines. SECTION 8. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. 2 ORDINANCE NO. 1329 PASSED, APPROVED, AND ADOPTED by the_City Council of the City of Palm Desert, California, at its regular meeting held on the { day of , 2017, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JAN C. HARNIK, MAYOR 3 ORDINANCE NO. 1329 Exhibit A PDMC SECTION: 25.34.120 — Cannabis Use and Regulations This Chapter shall be known as the "Cannabis Use and Regulation Ordinance" for the City of Palm Desert. A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, personal cultivation, manufacturing, testing, distribution, transportation, delivery, dispensing, retail sale, and personal adult use of medicinal cannabis and non -medicinal cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 (CUA), the Medical Marijuana Program Act (MMPA), and the Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. It is the intent of the City to allow personal cultivation at residential properties and commercial cannabis permitees within city boundaries, subject to approval of special permitting, terms, conditions, confirmation of a State issued license, and in accordance with the provisions of this title. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in State law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under State law, generally. B. Definitions Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter. Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources: The California Business and Professions Code Section 19300.5 and Section 26001, The Compassionate Use Act of 1996 (CUA), The Medical Marijuana Program (MMPA), and the Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA). "Applicant" means a person applying for a Conditional Use Permit whom will be the primary owner and operator for any Commercial Cannabis Business. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or ORDINANCE NO. 1329 preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis retailer" means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. "Cannabis manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or re -labels its container. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Commercial Cannabis Business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transporting, sale, dispensing, delivery or transport of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities for commercial use purposes. "Fully Enclosed and Secured Structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Licensee" means the holder of any State issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the Business & Professions Code. 2 ORDINANCE NO. 1329 "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Permittee" means any person granted a Conditional Use Permit under this Chapter. "Private Residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. "Sale" includes any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom such cannabis or cannabis product was purchased. "Testing Facility" means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Permit Required and Exemptions 1. Required i. All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit, City business license, and license from the Bureau of Cannabis Control prior to the operation of any cannabis facility within the City. ii. Building permits for improvements associated with a Commercial Cannabis Business may be issued once an applicant has obtained approval of a Conditional Use Permit; however, a Certificate of Occupancy to operate will not be issued until said Commercial Cannabis Business has obtained and provided the City proof of a license issued by the Bureau of Cannabis Control as part of the City's Business License application. iii. Any Commercial Cannabis Business issued a Conditional Use Permit must provide the City with proof of a license issued by the Bureau of Cannabis Control prior to operation. Failure to maintain a license from the Bureau will result in revocation of the Conditional Use Permit and business license. iv. No Commercial Cannabis Business may operate in the City unless a license(s) from the Bureau of Cannabis Control has been issued and provided to the City's Department of Community Development and Business License Division. v. A copy of the Bureau of Cannabis Control license, and any updates to the license, shall be provided to the Business License Division at the time of business license renewal. vi. Changes in license type, business owner, or operation will require an amendment to the approved Conditional Use Permit. 2. Exemptions i. Personal use, and cultivation of cannabis for personal use, is permitted outright on residential properties and subject to Subsection E of this ordinance and in 3 ORDINANCE NO. 1329 accordance with the MAUCRSA. ii. Primary Caregivers engaged in the transportation of cannabis and cannabis related products to Qualified Patients for which they are the Primary Caregiver are exempt from the requirement to obtain any special licensing from the City. iii. Any Cannabis Delivery operator, with a physical address outside the City is exempt from obtaining a Conditional Use Permit. The operator is required to obtain a business license with the City's Business License Division. D. Prohibited Activity 1. No Commercial Cannabis Business shall operate without first obtaining approval of: a Conditional Use Permit from the Planning Commission, a City issued business license, and the required State issued cannabis license from the Bureau of Cannabis Control. 2. No Commercial Cannabis Business shall operate within 600 feet of a school, day care facility, or youth center as defined by this Ordinance and the MAUCRSA. 3. A Commercial Cannabis Business shall operate in accordance with the conditions adopted in the approved Conditional Use Permit and all conditions imposed by the Bureau of Cannabis Control. Commercial Cannabis Businesses shall only operate in designated zoning districts as identified in Section 25.16.030, 25.18.040 and within a fully enclosed and secured structure. 4. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. 5. Commercial Cannabis Businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, day care, park, or youth center. 6. Any activity generally prohibited by the MAUCRSA, or other applicable State provisions related to Commercial Cannabis Businesses, and local ordinances. E. Personal Use and Cultivation Persons 21 years and older are permitted to use cannabis in accordance with the MAUCRSA, and subject to the City's Smoking Ordinance (PDMC 8.36). No special land use or business permits are required from the City for personal use and cultivation at or within a private residence. The following standards shall regulate personal use and cultivation: 1. Personal Use. Qualified patients and persons of legal age permitted to use cannabis in accordance with AUMA or MCRSA, and MAUCRSA, when it goes into effect, may do so on private property, out of public view, and in accordance with the City's "Regulations and Prohibitions of Smoking" Ordinance (PDMC 8.36). Generally, the 4 ORDINANCE NO. 1329 use of cannabis is prohibited on City property, including parks, common areas in City -owned housing developments, and other public places. Smoking or use of cannabis is prohibited within 1,000 feet of a school or childcare facility. 2. Personal Cultivation — Residents in the City are permitted to cultivate cannabis on private residential property for personal use and in accordance with AUMA, MCRSA, and then MAUCRSA, when it goes into effect; subject to the following standards: i. Outdoor Cultivation a. Cultivation for personal use is only permitted on private residential property developed with at least one residential dwelling unit. No more than six (6) plants are permitted to be cultivated at a private residence. Property owners retain the ability to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site. b. Outdoor cultivation is limited to rear and side yard areas, and only if screened by a solid block wall no less than six (6) feet in height. c. Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method. d. Outdoor cultivation within 600 feet of a school, day care center, or youth center is prohibited. ii. Indoor Cultivation a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the City's Department of Building and Safety. b. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residences. F. Commercial Cannabis Businesses Commercial Cannabis Businesses are defined in Subsection B of this Ordinance and do not include businesses that only sell cannabis related paraphernalia. All Commercial Cannabis Businesses shall be regulated by the following: 1. Required Permits — All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit in accordance with PDMC Section 25.72.050 "Conditional Use Permit" and PDMC Chapter 5.101 "Commercial Cannabis Regulations Permits." Commercial Cannabis Businesses must also obtain a business license with the City's Business License Division and provide proof of a cannabis license issued by the Bureau of Cannabis Control in accordance with Section C of this Ordinance. Failure to provide proof of a State issued cannabis 5 ORDINANCE NO. 1329 license within one year of Conditional Use Permit approval will render the Conditional Use Permit invalid. 2. Location — Commercial Cannabis Businesses are permitted in the City's commercial, industrial, and downtown zoning districts as identified in Section 25.16.030 "Allowed Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit Requirements" of the Palm Desert Municipal Code. In accordance with MAUCRSA, no Commercial Cannabis Business is permitted within 600 feet of a school, childcare facility, or youth center. Commercial Cannabis Businesses are prohibited from operating on properties that abut public parks, private residential properties, or are located within the City's Downtown Core Overlay District. 3. Separation Requirement — Commercial Cannabis Businesses shall conform to the following separation requirements: i. No Conditional Use Permit shall be issued to a Commercial Retailer that is located within 1,500 feet of another approved Commercial Cannabis Business. ii. Commercial Cannabis Businesses whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City's Service Industrial zoning district only, shall be separated by 1,500 feet from another approved Commercial Cannabis Business. iii. Commercial Cannabis Businesses whose main business function is to operate as a testing laboratory are subject to a separation requirement of 500 feet and are exempt from the separation requirements listed above. iv. No Conditional Use Permit will be issued for Commercial Cannabis Business located within 600 feet of a school, day care center, youth center. v. With the exception of Commercial Cannabis Businesses whose business is located within a mixed -use building or whose primary business function is as a testing laboratory, no Conditional Use Permits shall be issued for commercial and industrial properties abutting public parks or private residences. vi. All separation requirements will be measured from the outer extents of the Commercial Cannabis Businesses lease space to the outer extents of another Commercial Cannabis Businesses lease space, or to the property line of a school, day care center and youth center. G. Penalties for Violation No person, whether as principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fails to comply with any of the requirements of this section. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this 6 ORDINANCE NO. 1329 section, any condition caused or permitted to exist in violation of any of the provisions of this section is declared a public nuisance and may be abated as provided under the Municipal Code or State law, and may result in revocation of a Conditional Use Permit. H. Grounds for Denial, Revocation or Suspension The issuance of a Conditional Use Permit for the operation of a Commercial Cannabis Business may be denied, and an existing permit may be revoked or suspended, if the permittee or applicant: 1. Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant. 2. Has been convicted of any offense related to the use, sale, possession or transportation of narcotics or habit-forming drugs. 3. Has been convicted of any offense punishable as a felony, or has been convicted within a 10-year period immediately preceding the crime of theft in either degree. 4. Failed to pay required taxes and business license fees. 5. Failure to maintain a valid State issued license from the Bureau of Cannabis Control. 6. Has failed to comply with the conditions imposed on the Conditional Use Permit. 7. Has violated any provision of this chapter. 7 ORDINANCE NO, 1329 Exhibit B Chapter 25.16 — Commercial and Industrial Districts Sections in This Chapter 25.16.010 Purpose 16-10 25.16.020 Characteristics of the Commercial and Industrial Districts 16-10 25.16.030 Allowed Land Uses and Permit Requirements 16-11 25.16.040 Specific Use Standards 16-14 25.16.050 Development Standards 16-15 25.16.010 Purpose The purpose of this chapter is to establish commercial and industrial zoning districts in the City, along with allowed use and development standards applicable to those districts. These districts are consistent with and implement the City's General Plan commercial and industrial district and center land use categories as indicated in Table 25.04-1 (Zoning Districts). 25.16.020 Characteristics of the Commercial and Industrial Districts The following descriptions of each district identify the characteristic uses, intensity of uses, and intended level of development for that district. A. Office Professional (OP). This district is intended for various levels of intensities for business, office, administrative, research and development, and/or professional land uses. This district is characterized by urban streetscapes with formal tree arrangements and larger block sizes. B. Planned Commercial (PC). The PC districts provide flexibility for commercial and mixed -use development. Generally, these districts are characterized as coordinated projects that integrate compatible commercial and residential mixed -uses. PC districts balance the need for automobile parking and pedestrian connections that are organized around walkable streetscapes and other pedestrian amenities. PC districts are further refined based on property size, proximity to residential uses, and as described below: 1. Specialty Commercial Center (PC-1). The specialty commercial center provides for small-scale commercial development that primarily serves surrounding neighborhoods and other immediate land uses. This district is characterized as being located in close proximity to residential development and, as such, provides high levels of convenient pedestrian access. This district also promotes the development of mixed -use (10.0-15.0 du/ac) as a transition between residential uses and other development types. 2. District Commercial Center (PC-2). The district commercial center provides convenient shopping opportunities outside of the downtown core area. This PC district provides large -format retail areas for the broader community and 10 ORDINANCE NO. 1329 provides flexibility for the integration of mixed -use (10.0-15.0 du/ac) on upper floors of commercial buildings. The center is also characterized by traditional parking Tots with formal tree arrangements and spacing and sufficient space for pedestrian areas and open space. 3. Regional Commercial Center (PC-3). The regional commercial center provides a unified area for commercial uses which offer a wide range of goods and services, including comparison and convenience shopping, entertainment, cultural, and recreational uses. The district provides for large- scale, large -format, commercial development that serves the broader region and is generally located around major intersections and properties in proximity to freeway overpasses. Although this district is predominately commercial, mixed -use (10.0-15.0 du/ac) is allowed and should be integrated into developments on the upper floor. 4. Resort Commercial Center (PC-4). The resort commercial center allows for the development of a range of entertainment, hospitality, restaurants, and recreational facilities with related commercial uses to serve visitors to the City. The district is characterized by multi -story development that provides recreation and entertainment amenities in accordance with its urban/natural setting, and provides flexibility to integrate mixed -use (10.0 du/ac). C. Service Industrial (SI). This district allows for the development of traditional business parks that allow for the manufacture, distribution, research and development, and service of products intended for use within Palm Desert and surrounding communities. The district is characterized as having a more urban setting with buildings located near roadways, shared and connected parking, and streetscapes with formal street tree arrangements. 25.16.030 Allowed Land Uses and Permit Requirements Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed uses and corresponding permit requirements for commercial and industrial districts and all other provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions). The "Special Use Provisions" column in the table identifies the specific chapter or section where additional regulations for the specific use type are located within this ordinance. Use regulations in the table are shown with representative symbols by use classification listing: "P" symbolizes uses permitted by right, "A" symbolizes uses that require approval of an administrative use permit, "C" symbolizes uses that require approval of a conditional use permit, and "N" symbolizes uses that are not permitted. Uses that are not listed are not permitted. However, the Commission may make a use determination as outlined in Section 25.72.020 (Use Determinations). 11 ORDINANCE NO. 1329 Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercialllndustrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP I PC-1 I PC-2 PC-3 PC-4 I SI Special Use Provisions Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium CC C N CC 25.16.040.E Dwelling, duplex CC C CC C 25.16.040.B Dwelling, multifamily CC C CC C 25.16.040.B Dwelling, single-family CC C N CC 25.16.040.B Group home CC N N CC 25.16.040.B Single -room occupancies N N N NNC Homeless Shelter N N N NNP Recreation, Resource Preservation, Open Space, and Public Assembly Uses Amusement facility, indoors Amusement facility, outdoors Community facility Day care center Emergency shelters Entertainment facility, indoor Entertainment facility, outdoor Institution, educational Institution, general Institution, religious N N C CCN N N N CCN N N N NNP N C C CCN N P N NNP N N N PPN N N N PPN CC C N NC C N C N NC C N C N NC Open space (developed or natural) N P P NPN Recreation facility, commercial N N P PPN Recreation facility, private N N N PPN Theater/auditorium N N P PNN Utility, Transportation, Public Facility, and Communication Uses Commercial communication tower C C C C C C 25.16.040.0 Commercial parking lot C N N NNN Public utility installation N N N NNP Public facility (utility or service) N N N N N P 12 ORDINANCE NO. 1329 Utility facility Retail, Service, and Office Uses Adult entertainment N N N NNC 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery AP P P PC Art studio AP P P PC Bed and breakfast N A A A A N Business support services N N N NPP Cannabis Retail NC C CC N 25.34.120 Cannabis Testing Facilities C N N N NC 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P PNN Financial institution C P P PNN Grocery store N P P P N N 25.16.040.F Health club, gyms or studios NA P P PC Hotel NA A A P N Liquor store N P P P N N Liquor, beverage and food items shop N P P P P N Medical, clinic P N P PNN Medical, office PP P PNN Medical, hospital N N N NNC Medical, laboratory P N N NNP Medical office, accessory N N N NNP 25.16.040.G Medical, research facility P P N NNC Mortuary N N N NNP Office, professional P N P PPP Office, local government P N N NNP Office, travel agency PP P PPN Outdoor sales N N A A A A Personal services N P P PPN Restaurant A C C C P C 25.16.040.E / H Retail N P P PPN Retail, bulky items N N N PPN Spa N N P P P N 13 ORDINANCE NO. 1329 Time-share project Automobile and Vehicle Uses Automotive rental agency Automotive gasoline station Automotive service facility N N N N NPP N N C CNC 25.34.090 N N C CNP 25.34.090 Automotive sales new and used (Outdoorllndoor) N N N NNC Automotive sales of accessory parts and supplies N N N PPN Vehicle storage facility N N N N N P 25.16.040.1 Industrial, Manufacturing, and Processing Uses Cannabis Cultivation N N N NNC 25.34.120 Cannabis Delivery N N N NNC 25.34.120 Cannabis Distribution N N N NNC 25.34.120 Cannabis Manufacturing N N N N NC 25.34.120 Industrial planned unit development N N N NNP Light industrial and research and development N N N NNP Maintenance facility N N N NNP Pest control facility N N N NNP Preparation of foodstuffs N N N NNP Production of home and office decor accessories N N N NNP Warehouse or storage facility N N N NNP Temporary Uses See Section 25.34.080 The establishment may be permitted with an Administrative Use Permit but may be elevated to a Conditional Use Permit at the discretion of the Z4 based on: parking, traffic, or other impacts. 25.16.040 Specific Use Standards The following provisions apply as indicated to the uses listed in Table 25.16-1 (Use Matrix for Commercial and Industrial Districts): A. Caretaker Housing. Permitted only when incidental to and on the same site as a permitted or conditional use. B. Residential (mixed use). Residential uses may be established and maintained to be compatible with the permitted or the approved conditional uses in the vicinity. C. Commercial Communication Tower. All communication towers and antennas shall satisfy the requirements of Section 25.34.130 (Communication Tower and Antenna Regulations). 14 ORDINANCE NO. 1329 D. Adult Entertainment. All uses defined as adult entertainment are required to meet the provisions established by Section 25.34.110 (Adult Entertainment Establishments). E. Commercial (ancillary). Applicable only to office and industrial complexes that occupy a minimum of two acres. Restaurant uses shall not exceed 10 percent of the gross leasable floor area and the total ancillary commercial uses, including restaurants, shall not exceed 25 percent of the gross leasable floor area of the complex. A Conditional Use Permit or Administrative Use Permit is required to review land -use compatibility and to ensure that adequate parking exists to serve the commercial use. F. Grocery Stores. Limited to a maximum building size of 10,000 square feet in PC-1, 30,000 square feet in PC-2, and 60,000 square feet in PC-3. G. Medical Offices, accessory. Permitted only when ancillary to and in conjunction with the operation of a hotel. H. Restaurants. Drive -through and drive-in facilities permitted by a Conditional Use Permit as follows: 1. Permitted locations. i. Within Freeway Commercial Overlay District ii. On the following streets and as indicated in Figure 25.10-2: Monterey Avenue and Portola Avenue from the northern city boundary to the north side of Gerald Ford Drive. 2. Development standards. i. Drive -through lanes and window facilities shall be designed in a manner that they are screened and/or not visible from surrounding public streets. ii. Drive -through vehicle queue must be permanently screened and/or not visible from surrounding public streets. I. Vehicle Service and Storage Facility. The storage facility must be completely screened. 25.16.050 Development Standards The development standards included in Table 25.16-2 (Commercial and Industrial District Development Standards) are applicable to commercial and industrial districts. These standards, along with other development standards (e.g., landscaping requirements, signs, and parking standards) located in the zoning ordinance, are intended to assist property owners and project designers in understanding the City's minimum requirements and expectations for high -quality development. A. Special setback requirements. In addition to the setback requirements in Table 25.16-2 (Commercial and Industrial District Development Standards) the following special setback provisions apply: 15 ORDINANCE NO. 1329 1. On interior Tots in the PC zone districts, setbacks shall be the lesser of the setback requirement listed in Table 25.16-2 (Commercial and Industrial District Development Standards). For exterior lots or projects perimeter adjacent to public streets the setback standards below shall apply. Said setbacks shall be measured from the property line. 2. Building setbacks from planned street lines: D. Table 25.16-2: Setbacks from Planned Street Lines Street Type Setback Distance Freeway 50 feet Major 32 feet Arterial 32 feet Collector 25 feet Local 25 feet 3. Where commercial districts abut a residential district, a fence or wall that is six (6) feet in height shall be located adjoining the property line except adjoining a required front yard. All commercial district property lines adjoining a residential district shall be landscaped with plant materials for an area 10 feet in depth. 4. All unpaved areas shall be landscaped and treated or maintained to eliminate dust. B. Exceptions. Development standards within the PC districts may be modified through the Precise Plan process as specified in Section 25.72.030Special standards within the Service Industrial (51) district. Sound emanating from industrial properties shall be muffled so as not to become objectionable due to intermittence, beat frequency, or shrillness. The measurements of sound shall be measured at the lot lines and shall be measured in decibels with a sound level meter and associated octave band filter, manufactured according to standards prescribed by the American Standards Association. Maximum permissible sound pressure levels shall comply with the limits at table 25.16-2 and the following standards: 16 ORDINANCE NO. Iva Table 25.16-3: Maximum Permitted Decibels Octave Band in Cycles - I 5econdfdecibeisl Adjacent Residential District B flu n daries f de c ibels] Lot Line of Use in the SI Zoneldecibelsl 0-75 72 79 76-150 59 74 151-300 52 66 301-600 46 59 601-1200 42 53 1201-2400 39 47 2401-4800 34 41 Above 4800 32 39 1. The maximum sound pressure level in decibels shall be 0.002 dynes per square centimeter. 2. Toxic gases or matter shall not be emitted which can cause any damage to health, animals, or vegetation, or other forms of property, or which can cause any excessive soiling beyond the lot lines of the use. 3. Vibration from any machine, operation, or process which can cause a displacement of .003 of 1 inch as measured at the lot lines of the use shall be prohibited. Shock absorbers or similar mounting shall be allowed, which will reduce vibration below .003 of 1 inch as measured at the lot lines. 4. Glare and heat from any source shall not be produced beyond the lot lines of the use. 5. Storage of refuse, trash, rubbish, or other waste material outside a permanent building shall be kept in enclosed containers in areas other than the front and side yards. 6. Lighting, including spotlights, floodlights, electrical reflectors, and other means of illumination for signs, structures, landscaping, parking areas, loading and unloading areas, and the like shall be shielded, focused, directed, and arranged as to prevent glare or direct illumination on streets or adjoining property. 7. Unless specific additional uses are permitted by the Certificate of Occupancy, the use of radioactive materials within the SI district shall be limited to measuring, gauging and calibration devices, as tracer elements, in x-ray and like apparatus, and in connection with the processing and preservation of foods. In no event shall radioactivity, when measured at each lot line, be in excess of 2.7 x 10-11 micro curies per milliliter of air at any moment of time. S. Electrical and electronic devices and equipment shall be suitably wired, shielded, and controlled so that in operation they shall not, beyond the lot lines, emit any 17 ORDINANCE NO. 1329 electrical impulses or waves which will adversely affect the operation and control of any other electrical or electronic devices and equipment. (Ord. 96 § 1, 1975, Exhibit A § 25.20-7.16) C. Special standards within the Office Professional (OP) district. 1. When adjacent to single -story residential, the rear and exterior side yard setbacks shall be increased by 6.43 feet for each foot of building height above 18 feet up to 25 feet tall. See table below: Table 25.16-4: Additional Setback in OP District Height 19 feet 20 feet 21 feet 22 feet 23 feet 24 feet 25 feet Setback Distance 26.43 feet 32.86 feet 39.29 feet 45.72 feet 52.15 feet 58.58 feet 65 feet 2. Second -story Windows: Second -story windows are allowed to face adjacent single -story residential zones with sufficient screening; either with landscaping or another method as approved through the precise plan process. 18 gxew `ezls 6uiplm8 (asn-paxlw) sa!Jot5 to 'ON (asn-pexlw) xew `146!eH 0 (asn-al6uis) xew `11-16ieH salaots g ',Dv s;ueuseanseaw 6uipline ❑ltey easy .mold 0 0 (Q m u�w `paeA aea 0 Q f] 0 0-1:-.1 w A u�W `paeA eps taw's Side yard, min (interior/exterior) up `paeA tuoan 3 e o v o 0 7C ❑_ (b a 3 Q 3 1 U1 [D 0 co suoisuawip 101 - 0 a W _ 1 0 0 Z Z -u 0 co b 0 Q• - c.n UI a 0 I p 1 ❑ ❑ 0 La) n 0 N R] 0 I Ui w �a D D Au t7 1 co A A (A CD n p N W 0 1 4 0 Z Z fN) 0 w 0 Q_ V-- cc • 0 0 1 1 ❑ ❑ 0 [7 0 w" 0 1 0 w f7D m n n Ry co a A N W w °. °n ' 1 I I I I 0 0 0 0 0 N D 4 m m m p'i ea z z 2 R7 --+ (A) ❑ ❑ 2 A 13 La. q 0 1 = n o 9' m r 0 0 Z O (xiCn O 0 O Q 0 0 N rD O � � N ;oia;sip lelatsnpuinet3aawwoO Table 25.16-4: Commercial and Industrial District Development Standards 'ON 33NVNIGH0 CO So go Q][rl AWN- ii N �. m 1'4, ,gro N j c,( :. , j co W m Q. m a m CO o n a y�h�.<�H10❑om ' W wm0ro q n 0uo xa—n9oa -mom 3ntr; n1. �c z m O z NO nT. tr CO nth 7 u Oflrnmm` u g n7 W `mUj oR aN T61 a]a CD y. n m H o ro b m o Fr) m -c ti 8 oa t Q 0 CD ti a 0 ? ro t Fe n) a-m• 5a as Q-m CO n` m o, ° m o 0 y m c3 N 0 m ' _� a o Cr n) m n m a s i1i li m r.b m'm ma 0 N co IVat° 0 yaco a a i m a¢ n tm . to N 'c o t b j 0 } -0 n ❑ m a 4 m 0 a c.`•c a o �m 0 Si tb w y CD m O a 4 it ti W 9 a N k k ET-, V CO N � - O 6 a N al Q a Fd m m m. m n y W a m St 0 • CT Sio ▪ Co CO a) m Po' •wejsAs uor;efiu N 0 n CommerciaUlndustrial ❑istrict 'ON 3ONVNI01:1O ORDINANCE NO. 1329 Exhibit C - 25.18.040 Land Use and Permit Requirements Amend Table 25.18-1. "Use Matrix for Downtown Districts" to the following: Land Use I Zone D I D-O I DE I DE-0 Special Use Provisions Retail, Service, and Office Uses Cannabis Retail C N C N 25.34.120 Cannabis Testing Facilities C N N N 25.34.120 23 ORDINANCE NO.: 1329 Exhibit D PDMC SECTION 5.101 Commercial Cannabis Regulatory Permits A. Purpose and Intent In coordination with Municipal Code Section 25.34.120 it is the purpose and intent of this section to regulate the commercial cultivation, personal cultivation, manufacturing, testing, distribution, transportation, delivery, dispensing, retail sale, and personal adult use of medical cannabis and nonmedical cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 (CUA), the Medical Marijuana Program Act (MMPA), and the Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) (collectively, "State Law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. It is the intent of the City to allow personal cultivation at residential properties and commercial cannabis operators within city boundaries, subject to approval of special permitting, terms, conditions, confirmation of a state issued license, and in accordance with the provisions of this title. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the dispensing, cultivation, processing, or distribution of cannabis that is illegal under state law, generally. B. Definitions Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter. Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources: The California Business and Professions Code Section 19300.5 and Section 26001, The Compassionate Use Act of 1996 (CUA), The Medical Marijuana Program (MMPA), and the Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA). "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" also means cannabis as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. "Cannabis accessories" means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing ORDINANCE NO.: 1329 cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. "Cannabis dispensary/retailer" means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. "Cannabis manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or re -labels its container. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Commercial Cannabis Business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transporting, sale, dispensing, delivery or transport of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed under California law, which enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities for commercial use purposes. "Fully Enclosed and Secured Structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the Business & Professions Code. ORDINANCE NO.: 1329 "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Private Residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. "Sale" includes any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom such cannabis or cannabis product was purchased. C. Operational Requirements All commercial cannabis businesses permitted in accordance with Chapter 25.34.120 "Cannabis Use and Regulations" are subject to the following operational requirements: 1. Commercial Cannabis Businesses shall be conducted only within a Fully Enclosed and Secured Structure that is not accessible to minors. 2. Commercial Cannabis Businesses shall not create nuisance issues such a dust, glare, heat, noise, smoke, odor, and shall not be hazardous to use or storage of materials, processes, products, or wastes. 3. All cannabis and cannabis products shall be kept in a secured manner during all business and nonbusiness hours. 4. Commercial Cannabis Businesses shall utilize product and inventory tracking software and accounting software that is in -line with reasonable business practices within the industry. 5. Commercial Cannabis Businesses shall install and operate security cameras at their place of business as follows: i. Security cameras shall be installed and maintained in good condition at all times. The areas to be covered by the security cameras include, but are not limited to sale, cultivation, manufacturing, processing, transportation, and distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. ii. Cameras shall be in use 24 hours per day, seven days per week. iii. Commercial Cannabis Business operators shall maintain at least 120 concurrent hours of digitally recorded documentation. iv. Any disruption in security camera images shall be cured expeditiously and in good faith. ORDINANCE NO.: 1329 6. Operators shall install alarm systems that are operated and monitored by an independent third party security company. 7. All storage areas shall be locked at all times and under control by the operator's staff. 8. All cannabis and cannabis products shall be securely stored and not accessible to the general public. D. Conditional Use Permit Submittal Requirements In addition to the requirements listed in the Conditional Use Permit, all Commercial Cannabis Businesses shall submit the following information in conjunction with the review of a Conditional Use Permit: 1. Background Check. The applicant is required to provide names, addresses, and relevant criminal histories of those with an ownership interest of twenty-five percent (25%) or more, and for themselves and the highest ranking employee (manager, director, etc...) at the Commercial Cannabis Business. The background check must be submitted on a form prescribed by the City and can be obtained at the City's Business Licensing Division. 2. Business Plan. To be submitted for operational, banking, and personal procedures to ensure adequate business knowledge, modeling and support. 3. Exterior Facade. Renderings of the business facade shall be provided and reviewed as part of the Conditional Use Permit. Building facade plans shall include renderings of the exterior building elevations for all side of the building. All building facades shall be tastefully done and in keeping with the high architectural quality and standards of the City of Palm Desert. Because State Law limits certain advertising, the business facade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. 4. Open Premises Agreement. By receiving approval of a Conditional Use Permit the operator of a Commercial Cannabis Business is agreeing to open the business to City officials at any time during business hours for inspection and to review that the operator is operating in accordance with the conditions of this title and the Conditional Use Permit. 5. Cultivation operators shall supply an energy and water assessments for review as part of the Conditional Use Permit process. These assessments shall estimate the total amount of annual electrical and water use required to operate the Commercial Cannabis Business. Review of the assessment may require the applicant to supplement electrical and water use at the site to minimize adverse environmental impacts. 6. Security Plan. All Commercial Cannabis Activities shall provide a security plan and demonstrate compliance with the security camera provisions outlined in ORDINANCE NO.: 1329 Section F4 of this Ordinance. 7. Access Plan and 24-hour Emergency Contact Information. The applicant shall provide contact information including name, email, and 24-hour accessible phone number to the Community Development Department and Sheriff's Department. 8. Community Relations. The applicant shall provide a 24-hour contact number to surrounding property owners within 100-feet of the operators location. By issuance of a Conditional Use Permit that operator of a Commercial Cannabis Business agrees to respond to inquiries, concerns, and complaints by surrounding property owners. 9. Odor Control. The applicant shall identify methods for ensuring odors emanating from a Commercial Cannabis Activities do not interfere with surrounding businesses and the public realm. Odor control methods, include, but are not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. 10. Annual License Renewal All Commercial Cannabis Businesses are required to provide a valid license issued from the State Bureau of Cannabis Control at time of business license renewal. Business license are required to be renewed on an annual basis. 11. Indemnification Agreement. All commercial cannabis businesses that obtain a Conditional Use Permit shall, and by acceptance of the permit, agree to hereby indemnify and hold harmless the City, its officers, agents and employees from any and all damages, claims, liabilities, costs including attorney fees, suits or other expenses resulting from and arising out of said commercial cannabis business operations. E. Penalties for Violation No person, whether as principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this section. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this section, any condition caused or permitted to exist in violation of any of the provisions of this section is declared a public nuisance and may be abated as provided under the Municipal Code or State Law, and may result in revocation of a Conditional Use Permit. F. Grounds for Denial, Revocation or Suspension The issuance of a Conditional Use Permit for the operation of a Commercial Cannabis Business may be denied, and an existing license may be revoked or suspended, if the license holder or applicant: 1. Has knowingly made false statements in their application or in any reports or other supporting documents furnished by the applicant. ORDINANCE NO.: 1329 2. Has been convicted of any offense related to the use, sale, possession or transportation of narcotics or habit-forming drugs. 3. Has been convicted of any offense punishable as a felony, or has been convicted within a 10 year period immediately preceding the crime of theft in either degree. 4. Failed to pay required taxes and business license fees. 5. Failure to maintain a valid State issued license from the Bureau of Cannabis Control. 6. Has failed to comply with the conditions imposed on the Conditional Use Permit. 7. Has violated any provision of this chapter. Date 8/2017 Ordinance Na. 1329 POTENTIAL CANNIBIS LOCATIONS PERMITTED Retail Testing Testing, Cultivation, Manufacturing, Distribution & Delivery City Boundary PROHIBIT School / Child Care / Youth Center Parcels 1 600' Buffer 42) Vicinity Map CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 17-027 NOTICE OF INTENT OF THE PALM DESERT CITY COUNCIL TO ADOPT A ZONING ORDINANCE AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE SECTION 25.34.120 CANNABIS USE AND REGULATIONS AND SECTIONS 25.16 COMMERCIAL AND INDUSTRIAL DISTRICTS AND 25.18 DOWNTOWN DISTRICTS TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. On August 1, 2017, the Palm Desert Planning Commission adopted a Notice of Exemption in accordance with CEQA. Project Location: City-wide Code Amendment Description: Section 25.34.120 will be retitled to Cannabis Use and Regulations to reflect the allowance of both medicinal and adult use of cannabis in accordance with the Medicinal and Adult -Use Cannabis Regulations and Safety Act (MAUCRSA) approved by the State of California. The City's Ordinance will allow for retail cannabis uses within the City's commercially zoned properties, testing and research facilities within the City's Service Industrial and Office Professional zoned properties; and cultivation, manufacturing, distribution, and delivery in the City's Service Industrial zones. All cannabis related businesses will be subject to a separation requirement of 1,500 feet from other cannabis related businesses, and review and approval of a Conditional Use Permit (CUP). Cannabis businesses must also meet State guidelines imposed by the Bureau of Medicinal Cannabis Regulations and are subject to State licensing requirements. Planning Commission Recommendation: The City of Palm Desert Planning Commission reviewed Case No. ZOA 17-027 at their meeting on August 1, 2017. The Planning Commission voted in favor (3-1-1) recommending approval of the ZOA to the City Council. Recommendation: Staff is recommending that the City Council adopt an ordinance amending the Zoning Ordinance to establish cannabis regulations and allow for cannabis businesses within the City. Public Hearing: The public hearing will be held before the City Council on August 24, 2017, at 4:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from August 14, 2017 to August 24, 2017. Public Review: The ZOA is available for public review daily at City Hall. Please submit written comments to the Community Development Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to, the City Council hearing. All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 eceja@cityofpalmdesert.org PUBLISH: DESERT SUN RACHELLE D. KLASSEN, CITY CLERK August 14, 2017 CITY OF PALM DESERT, CALIFORNIA 2 August 23, 2017 Honorable Jan Harnik Mayor City of Palm Desert HAND DELIVERED Dear Mayor Harnik: NOBLE & COMPANY, LLC RECEjY CITY CLERK OFFICE PALM DESERT. CA Re: Proposed Cannabis Ordinance 2011 AUG 23 PM 1: 06 Enclosed please find copies of correspondence dating back to April 28, 2017. On behalf of the Gateway Industrial Park at Palm Desert POA and Noble & Company, LLC, I have raised several concerns regarding the referenced proposed ordinance and the following concerns are still open: 1. The proposed ordinance does not adequately protect residential properties. All other such ordinances that I have reviewed require a minimum 250 foot separation between cannabis businesses and residential properties The proposed Palm Desert ordinance would prohibit such businesses from properties which "abut...private residential properties...". The provided definition of "private residence" is "...a house, an apartment unit, mobile home or other similar dwelling unit." No definition of the term "private residential properties" is provided and one should be added providing that such properties are those zoned for any residential use. Also, due to the likelihood that such business will emit noxious orders as well as the possibility of robberies and burglaries due the their cash nature, a 250 foot separation should be the minimum required; 2. We request that, as part of the City's CUP process for cannabis businesses, applicants be advised to determine whether the property on which they intend to operate is subject to CC&Rs. If so, a determination by the Property Owners' Association or other entity with reviewing authority that the proposed business is allowed under the CC&Rs would be required. Thank you for your attention to these requests. I will be happy to provide any additional information that would be helpful. Sincerely, Thomas S. Noble Cc: Mayor Pro Tem Jonathon Councilmember Kelly Councilmember Nestande Councilmember Weber Lauri Aylaian Ryan Stendell Eric Ceja 34360 Gateway Drive, Palm Desert, CA 92211 Tel. (760) 770-3100 • Fax (760) 770-3199 • noblecompanyllc@aol.com www.noblecompanyllc.com Gateway Industrial Park at Palm Desert Property Owners' Association, Inc. PO Box 12950 Palm Desert, CA 92255 (760) 770-3100 • Fax (760) 770-3199 April 28, 2017 Mr. Ryan Stendell Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 By e-mail: rstendell@cityofpalmdesert.org Original by U.S. Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Ryan: I have reviewed the referenced draft ordinance on behalf of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., and offer the following comments: 1. Apparently the draft ordinance does not specify a minimum distance by which a commercial marijuana operation must be separated from residential property. Ordinances adopted by other Coachella Valley cities require a minimum distance of 250 feet and we suggest that at least that standard should apply in Palm Desert; 2. The recorded CC&Rs of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., provides at Section 8.2.5 Nuisance: "No Parcel or portion thereof shall be used for any purpose or business which is dangerous or unsafe, which constitutes a nuisance, or is in any way obnoxious or offensive by reason of, among other things, the emission of dust, odors, smoke, vibrations, electro- mechanical disturbances, intermittent lights, glare, noise, fumes, ash or sound." We ask that any party requesting a CUP under this ordinance (when/if adopted) be advised of this provision and that approval by this Property Owners' Association be required before approval of any such CUP. Mr. Ryan Stendell April 28, 2017 Page 2 of 2 Thank you for your attention to these requests, please feel free to contact us with any questions or comments that you may have. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., By: Thomas S. Noble President Cc: Caroline Halcovich Fadio Ceresa 5/3/2017 Gmail - Attached Letter M Gmail Attached Letter Tom Noble anoblecompany760@gmail.com> sharon noblecompanyllc.com <sharon@noblecompanyllc.com> Sat, Apr 29, 2017 at 10:57 AM To: noblecompany760@gmail.com Original Message From: eceja@cityofpalmdesert.org To: sharon a@7noblecompanyllc.com Cc: rtendell@cityofpalmdesert.org Date: April 28, 2017 at 6:05 PM Subject: RE: Attached Letter Hi Tom, Thank you for your letter regarding the City's Cannabis Ordinance. So far the committee has not considered a separation requirement between cannabis uses and residential properties. 1 think this is because some are looking to treat cannabis like any other retail establishment and we do not have that requirement for other retail uses. I will present your idea to the committee at their next meeting in late May and see what they recommend. Regarding you second concern, property owners retain the right to lease to businesses they see fit for their properties. All Conditional Use Permit applications require the property owner to consent (sign off) to the use and without property owners consent we will not even lake in the application. --- I f Thanks, Eric Ceja, Principal Planner Community Development Department eceja@cityofpalmdesert.org P: (760) 346-0611 F: (760) 776-6417 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 —Original Message --- From: Stendell, Ryan Sent: Friday, April 28, 2017 12:01 PM To: Ceja, Eric Subject: FW: Attached Letter Ryan Stendell Director of Community Development Ph: 760.346, 0611 Direct: 760.776.6386 rstendell@cityofpalmdesert.org ----Original Message — From: Sharon Walton[mailto:sharon@noblecompanyllc.com] Sent: Friday, April 28, 2017 12:00 PM To: Stendell, Ryan Cc: fceresal@gmail.com: 'Tom Noble' Subject: Attached Letter Mr. Stendell, Please see attached letter from Tom Noble. If you have any questions, please do not hesitate to contact him directly on his cell 760-221-3559. Thank you. baps://mail.gangle.cam/matVu/0/?ui=2&ik=5a8da8f852&view=pt&msc l5bbadcbalr0,4L earth=inhox&simi=15bbadcb9oe29a9c 1/2 Gateway Industrial Park at Palm Desert Property Owners' Association, Inc. PO Box 12950 Palm Desert, CA 92255 (760) 770-3100 • Fax (760) 770-3199 May 3, 2017 Mr. Eric Ceja Principal Planner Community Development Department City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 By e-mail: ecei a0,citvofnalmdesert.ore Original by U.S. Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Eric: Thanks for your very prompt reply to my letter of April 2861 to Ryan Stendell. 1 will appreciate your bringing my comments regarding the need for a specified minimum distance between a cannabis facility and residential property to the attention of the members of the cannabis advisory committee and I hope that they will follow the lead of other jurisdictions in recommending same. I do not understand the concept of treating cannabis operations which may be permitted by the proposed ordinance "...like any other retail establishment....". The proposed ordinance would allow the full spectrum of marijuana related functions including cultivation and manufacture. It is questionable whether such activities are appropriate in Palm Desert's Service Industrial (SI) zone and they certainly do not meet the stated goals of the City's commercial areas. The CC & R's of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., present a separate issue. The restrictions quoted in my April 281hletter are binding on all users of property in this development, not just owners. Owners of such property should be aware of the CC&Rs but tenants may not be. It would be in no one's interest for a tenant to be granted a CUP for a function which would emit odors in violation of the CC&Rs. Rather than to get into the legal wrangling entailed in the enforcement of CC&Rs it would be much better to be certain that all patties to a potential lease or sale have actual notice of the use restrictions which apply to this development. We will call the attention of all owners within this Mr. Eric Ceja May 3, 2017 Page 2 of 2 association to the restrictions set out in the CC&Rs and we think that it would be wise for the City to do likewise. Thank you again for your attention to these concerns. Please let me know if you would like to discuss these issues in person. Also, please advise me of all future meetings on this matter. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., By: p"1e Thomas S. Noble President Cc: Caroline Halcovich Fabio Ceresa 5/17/2017 Gmail - Attached letter Forwarded message --------- From: Tom Noble <noblecompany760@gmail.com> Date: Fri, May 5. 2017 at 9:34 AM Subject: Re: Attached letter To: eceja@cityofpalmdesert.org Cc: sharon[]a nobiecompanyllc.com, Bob Hargreaves <Robert.Hargreaves@bbklaw.com> Eric, Thanks for the up -date. Sorry to load you down with more questions but will you recommend a specific number of feet between cannabis facilities and residential property? When will the next committee meeting be held? Also, just to be clear, my concern regarding such facilities being in violation of our CC&Rs does not end with a property owner's approval of a tenant's or purchaser's application. It is very possible that an owner could give such approval but that the subject facility would be in violation of the CC&Rs by, as one example, emitting odors once it goes into operation. In such a case the FDA would have the right to seek an injunction to stop such odors even if that required shutting down the business. It is obviously in everyone's interest to make all parties fully aware of the CC&R's provisions at the outset instead of having to enforce them with expensive legal action at a later date. Since this is largely a legal question I am copying the city attorney on this message. Thank you again for your attention to these matters. Tom Noble On Thu, May 4, 2017 at 5:12 PM, <eceja@cityofpalmdesert.org> wrote: Thank you for the letter. I will be recommending to the Committee that we prohibit cannabis related uses adjacent to residential properties. In addition, we do not receive or approve conditional use permit applications without property owner authorization. Thanks, Eric Ceja, Principal Planner Community Development Department eceja@cityofpalmdesert.org P: (760) 346-0611 F: (760) 776-6417 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Go gle robbery at marijuana dispensary 0. 0 All News Maps Shopping Videos More Settings Tools About 212,000 results (0.50 seconds) Armed robbers hit Spring Valley marijuana dispensary - The San ... www. sa nd i egou n io n t r lbu n e.co m/news/... /sd-me-pot-robbery-20170607-story.html • Jun 7, 2017 - A Spring Valley marijuana dispensary was robbed late Tuesday, shortly before closing time. Masked men rob marijuana dispensary I fox5sandiego.com fox5sandiego.com/2017/06/07/masked-men-rob-marijuana-dispensary/ • Jun 7, 2017- Police are looking for several masked men who allegedly robbed a Spring Valley pot shop late Tuesday. Cathedral City medical marijuana dispensary robbed - The Desert Sun www. d e serts un. comistory/news / c rime_co u rts/ 2 017104/ 2 7/ca t h ed ra I.../30 7190001 / Apr 27, 2017 - A robbery was reported Wednesday night at No Wait Meds on Ramon Road. Perris men arrested in robbery of marijuana dispensary — Press ... www.pe.com/2017/05/12/perris-men-arrested-in-robbery-ol-marijuana-dispensary/ May 12,2017 - Two Perris men were arrested after sheriffs officials say someone robbed a dispensary of marijuana and later pointed a gun at the victim. Pot dispensary attempted robbery - LA Times wwwilatimesicomilocal/ianow/87503661-132.html r Two men who attempted to rob a medical marijuana dispensary in Walnut Park on Tuesday night are In critical condition aher the business owner pulled out a ... UPDATE: Surveillance photos released of medical marijuana ... www. kt nv.com/ n ew s/ m ed ica l-m a rij u ana-d ispens a ry-rob bed-at-g a npo int-on-wednesday • Jan 18, 2017 -LAS VEGAS (KTNV) — The Las Vegas Metropolitan Police Department reports that a medical marijuana dispensary was robbed at gunpoint on ... Man Fatally Shot in Pot Dispensary Robbery - NBC Southern California www. n b cl osa ngel es. com/news/... /M a n-Fata l ly-Shot-i n-Pot- Di spen sary-Robbery. htm} • Jan 18, 2017 -A man was shot and killed Wednesday during a robbery at a marijuana dispensary in Mar Vista. Are Weed Dispensary Robberies On The Rise? - News I MERRY JANE https://merryjane.com/news/are-weed-di,r .._ :.. ..I-benes an the rise Jun 27, 2016 - Marijuana dispensaries are frequently being robbed. Las Vegas police name suspects in marijuana dispensary robbery ... https://www.review)ournal.cam/.../robberies/tas-vegas-police-name-suspects-in-mariju... • Jul 30, 2017 - The Metropolitan Police Depaninent has identified four men they suspect robbed of a marijuana dispensary Saturday in the central valley and ... Robberies at Phoenix Medical -Marijuana Dispensaries Show Need for ... www.phoenixnewtimes.com/.../robberies-et-phoenix-medical-marijuana-dispensaries-... - Apr 11, 2017 - A spare of recent robberies and thefts at Phoenix -area dispensaries has medical - marijuana representatives talking about the need for improved .. Cannabis Legal/ Business - Consultation- Dispensaries ao www.narayanlawgroup.com/JD-ColumbiaM8A • Challenges/Opportuniiies. 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