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HomeMy WebLinkAboutRes 2017-74 - ZOA 17-027 - Selection Criteria - Cannabis CUP RESOLUTION NO. 2017-74 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: October 26, 2017 REQUEST: CONSIDERATION OF APPROVAL OF SELECTION CRITERIA FOR COMMERCIAL CANNABIS BUSINESSES Recommendation Waive further reading and adopt Resolution No. 2017- 74 establishing selection and prioritizing criteria for Conditional Use Permits for commercial cannabis businesses. Strategic Plan The selection criteria established for review of potential commercial cannabis businesses contributes to the Land Use elements of the Envision Palm Desert —> Forward Together strategic plan. Specifically, the criteria contribute to: 1. Land Use, Housing, and Open Space Priorities: "Enhance Palm Desert as a first- class destination for premier shopping and national retail businesses." The selection criteria for review of cannabis businesses ensures that any commercial cannabis business will conform to strict operational standards and that all businesses are attractive and contribute to the image and aesthetic quality of the City. Executive Summary In review of the cannabis ordinance, the City Council directed staff to establish objective criteria for a merit-based review and prioritization of potential commercial cannabis businesses. Staff has researched criteria established in merit systems in cities around the state, and focused on five (5) criteria that staff believes are important to the City. Those criteria are the following: 1. Location and Neighborhood Compatibility 2. Security Plan 3. Experience and Qualifications of Professionals 4. Building Façade and Interior Improvements 5. Community Benefits These criteria, established by a City Council Resolution, will ensure that any potential cannabis business is objectively reviewed for business and retail quality, and safety and 7 2500.00707\3023 8903.1 DRAFT 10/17/17 October 26, 2017— Staff Report Selection Criteria for Commercial Cannabis Businesses Page 2 of 2 that priority in granting conditional use permits will be given to the most qualified applicants . Background & Analysis Several selection-based systems for cannabis businesses have been established around the State for small and large jurisdictions alike. There are no set or required selection criteria imposed by the state and each city may establish criteria that best suit local conditions. Below is a list of common selection criteria established throughout the State: • Location • Neighborhood Compatibility • Community Benefits • Safety and Security • Environmental Benefits • Quality Control/Product Safety • Non-Profit/Medical Preference • Labor or Employment • Business Experience and • Local Enterprise Competency No city has incorporated all of the criteria above, and many cities assigned various point values to each criterion to weigh those criteria deemed most important. Staff believes that criteria for a merit-based review should be as objective as possible and should only emphasize criteria most important to Palm Desert. Therefore, staff is proposing five (5) criteria, each with an equal weight, to be used during the review of Conditional Use Permits for commercial cannabis businesses: • Location and Neighborhood Compatibility • Security Plan • Experience and Qualifications of Professionals • Building Façade and Interior Improvements • Community Benefits Definitions of each of the above criteria are provided in Exhibit A of the draft resolution attached to this report. The Cannabis Ordinance contains several limitations on where a business can locate, distancing requirements from schools, other uses, and other cannabis business, and limits the total number of retail cannabis operators permitted to operate in the City. Staff will accept and review completed Conditional Use Permits applications for cannabis businesses. Completed applications will then be judged against the selection criteria established in the attached resolution. In the event that the initial review process yields any tie scores, staff will use a lottery as a final means of prioritizing applications. This process has been recommended by the City Attorney as the most legally defensible approach. 72500.00707\30238903.1 DRAFT 10/17/17 October 26, 2017— Staff Report Selection Criteria for Commercial Cannabis Businesses Page 2 of 2 Fiscal Analysis There is no fiscal impact related to staff's request. Prepared by: Eri ja, Principal Planner LEGAL REVIEW DEPT. REVIEW _ FINANCIAL REVIEW CITY MANAGER —�— N/A Robert W. Hargreaves Ryan Stendell City Attorney Director of Community Janet Moore Lauri Aylaian Development Director of Finance City Manager APPLICANT: City of Palm Desert ATTACHMENTS: 1. City Council Resolution No. 2017- establishing criteria for Conditional Use Permits for Commercial Cannabis Businesses. 72500.00707\30238903. DRAFT 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING SELECTION CRITERIA TO BE USED DURING THE REVIEW OF CONDITIONAL USE PERMITS FOR COMMERCIAL CANNABIS BUSINESSES 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 of the City of Palm Desert, California, did on the 12th day of October, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code of the City of Palm Desert, and adopted Ordinance 1329 establishing commercial and personal cannabis regulations and a conditional use permit review process, and WHEREAS, Section 25.34.120(C)(1) provides a limit of six conditional use permits for retail cannabis businesses, including up to one on El Paseo; the City anticipates that there may be more applicants than available permits; and WHEREAS, Section 25.34.120(D) provides distance standards that may limit the number of conditional use permits in a given area; and WHEREAS, the City Council of the City of Palm Desert, California, directed staff to establish a selection criteria for review of commercial cannabis business during the conditional use permit process to ensure that only quality operators are permitted in the City and to provide a basis for prioritizing applicants should the number of applicants exceed the number or locations of available conditional use permits; and WHEREAS, the selection criteria established in this resolution 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 NOW, THEREFORE, BE IT RESOLVED 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 72500.00707\30238865.I DRAFT 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 that the following regulations to establish selection and prioritization criteria for commercial cannabis businesses are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of the City of Palm Desert. SECTION 2. Adoption of selection criteria for review of commercial cannabis businesses through the conditional use permit process as identified in Exhibit "A" attached to this Resolution implements Ordinance No. 1329. 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 City Council 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. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 26TH day of October, 2017, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 2 72500.00707\30238865.1 DRAFT 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 EXHIBIT "A" Selection Criteria — Commercial Cannabis Businesses: The City recognizes that Palm Desert is an attractive place for business and that any potential cannabis business needs to be thoughtfully reviewed to ensure that values and priorities of the community remain ever present. Furthermore, the City anticipates that there may be more applicants for certain commercial cannabis business conditional use permits than allowed under Ordinance 1329. Therefore, the City has enacted, through Resolution, the following selection and prioritization process for prioritizing applications for commercial cannabis businesses. I. Completeness Review All commercial cannabis businesses are required to submit a Conditional Use Permit (CUP) application, with fee, to the City's Community Development Department. Applications will be reviewed for "completeness" to ensure that applicants have submitted all the required information necessary for review of the application. Only applications received within the first week of December 2017 ("initial review and prioritization period") and deemed complete will move on for review under the City's selection criteria. After the initial review and prioritization period, additional applications will be reviewed and processed according to date the application is accepted as complete and will not be subject to the review and prioritization process. II. Selection Criteria The following selection criteria will be used by the Department of Community Development to evaluate and prioritize CUPs for commercial cannabis businesses. Selection criteria are each worth one (1) point. To obtain the point, the applicant must demonstrate compliance with each criteria listed in the section below. 1. Location and Neighborhood Compatibility a. Has the applicant secured a lease and do the CCRs permit the use? b. Is the location 1,000 feet away from schools, daycares, and youth centers? c. Are "sensitive uses" (places of worship, parks, pre-schools, drug or rehab centers) within 500 feet of the location? d. Has the applicant provided a detailed description of how the premises and exterior building areas will be managed so as to avoid nuisance, loitering, and other negative impacts on surrounding properties? e. Does the applicant identify adequate odor control measures? f. Is the operation plan prepared in accordance with Chapter 5.101? g. Is the proposed use located in an appropriate zoning designation? 2. Security Plan a. Is a detailed security plan provided that includes descriptions for effective fire prevention, suppression, HVAC and alarm systems? 3 72500.00707\30238865.I DRAFT 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 b. Does the security plan identify all required elements contained in Chapter 5.101 and adequately address security for the particular site and operation? 3. Qualifications/Experience of Professionals a. Does the applicant provide a viable business plan in accordance with Chapter 5.101? b. Does the applicant provide information demonstrating successful previous business experience? c. Do the principals of the business have successful business experience? d. Do the principals of the business have business experience specific to the cannabis industry for which they are applying? 4. Building Façade and Interior Improvements a. Does the applicant provide a detailed tenant improvement plan that identifies all interior improvements? b. Are the interior improvements attractive and in keeping with traditional retail or industry standards? c. Are the exterior façade improvements attractive, suitable for Palm Desert's image and climate, and enhance the surrounding areas? d. Does the applicant provide a detailed architectural plan for building façade improvements? 5. Community Benefits a. Does the applicant provide an effective community outreach plan for nearby and adjacent land uses? b. Does the applicant describe credible benefits to the overall community, local economy, and any community or non-profit contributions or affiliations? c. Does the applicant provide any additional community benefits described in either their business plan or other documentation submitted as part of the CUP? III. Lottery Applications for retail/dispensaries, cultivation, manufacturing, delivery and distribution, which receive tie scores from the selection criteria, will be entered in to a lottery based on the category of their use. The first lottery winner will be plotted on a map, along with a 1,500-foot radius, to determine if any other applications are eliminated by the required separation distance. This process will be repeated until all applications have been selected. 4 72500.00707\30238865.1 DRAFT 10/17/17 Ro f IR BERNHHVER C O N n C� i. October 23, 2017 Hon. Jan Harnik, Mayor Hon. Sabby Jonathan, Mayor Pro Tem Hon. Kathleen Kelly, Council Member Hon. Gina Nestande, Council Member Hon. Susan Marie Weber, Council Member City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 45-025 Manitou Drive, Suite 3 - Indian Wells, CA 92210 Phone 760.360.7666 Fax 760.262.3957 Rob@RobBernheimer.com m Re: Selection Criteria for Commercial Cannabis Businesses Resolution 2017-74 —4 r—rr IN) rn Agenda Item X I V A — October 26, 2017 �,' tri 3 'Q`^rn -40c Dear Mayor, Mayor Pro Tem and Council Members: ru CO 1 have reviewed proposed Resolution 2017-74 regarding the Selection Criteria for Commercial Cannabis Businesses. As I understand the process as proposed, each applicant can receive a score of either 1 or 0 in each of five categories, with a top score of 5. If multiple applicants within 1,500 feet each have a total score of 5 (or the same highest score), staff proposes a lottery to select the operator. This process does not nearly assure Palm Desert of selecting the best operator with the highest likelihood of meeting Palm Desert's standards or quality of life. In order to better assure Palm Desert selects the best applicant, I propose 2 changes. First, the City should consider assigning a score of 1-5 for each category. If one proposal really stands out from the others, even if they each otherwise address the category, the better proposal can score higher. Second, the City should consider adding three additional categories. (1) Ownership of Premises. Does the Applicant or one of its principals own, rather than lease, the proposed cannabis location. This demonstrates a greater investment and commitment to Palm Desert. (2) Longevity in Business in Palm Desert. Has the Applicant or one of its principals been in business in Palm Desert for at least 10 years. This demonstrates the Applicant understands Palm Desert and its quality of life. ROBERT A. BERNHEIMER Palm Desert Planning Commission October 23, 2017 Page 2 (3) Financial Strength of Applicant. The Applicant should submit its financial statement to demonstrate an ability to operate the business with a minimum of $ I,000,000 in cash reserves. This demonstrates the Applicant has the ability to make sure the business has the resources to follow through on the commitments in its application. Using these additional criteria, with a range of scoring, will allow Palm Desert to select the best of the best, not leaving to a lottery the potential of picking a mediocre operator that happens to meet 5 criteria. Thank you for your consideration of these changes to proposed Resolution 2017-74. Cora ially, obert A. Bernheimer cc: Ryan Stendell, Director of Community Development Eric Ceja, Associate Planner KITE'I'-'I'V where every day is Veterans day =iJ Indian Nation Network TheB3roadcastCenter Education and intormation Television & vlulti-Viedia Programming 10.16.2017 City of Palm Desert Council Members It is my understanding that the owner of the Medical Marijuana dispensary, P.S.A. Organica Palm Springs, Julie Montante will be applying for a Medical Marijuana dispensary license in the City of Palm Desert to be known as Palm Desert Organica. Beginning in late 2016 I started to investigate the uses of CBD and THC medical marijuana for arthritis pain. For reasons that I am going to be disclosing during an upcoming series of programs, on December 22, 2014 I had a medical procedure that resulted in my doctor recommended order to no longer take any pain medication such as Aleve, which had worked effectively for the past 18+ years for my inherited arthritis. I have never been a user of any form of Marijuana, however when I learned that a strain of Medical Marijuana called CBD was now available in a safe form, including Pharmaceutical grade, I reached out to several dispensaries, both here in the Coachella Valley and Los Angeles and the oldest one in California, Harborside in Oakland, California. I did not realize any pain relief for any of the CBD products that I bought. C I =z Nd 1Z 130 LLD V 3 i d3S3a NlV d 33133a3�i���aAli3 1 Further research resulted in meeting Julie Montante at her Palm Springs dispensary. I brought with me all the CBD products that had previously been recommended for me. Julie went through a detailed education of what I had been taking without any pain relief and then made recommendations. Her recommendations were direct and uncomplicated. Our region consists of a large population of seniors who, usually beginning at the age of about 50+, begin to experience health issues normal for the aging process. This population needs educating to eliminate the "perceived negative opinion" of Medical Marijuana... specifically the use of CBD with the related THC products. Once Julie educated me on these products...I once again did my research and then purchased the products that I thought would reduce or eliminate my arthritis pain. On a scale of 1 to 10...I was constantly at a 9+. My MD recommended a prescription for a pain medication which I took per instructions. This was successful in reducing my pain by about 60%. Big problem, I immediately gained 10 pounds. Unable to fit into my clothes, Pepe the Taylor became my new best friend. Taking and adjusting the CBD/THC combinations took time and the right education...but I am now 90%+/- pain free. As leaders of the City of Palm Desert, you have total control over the ability for your citizens in need of physical pain relief to experience the same education that I have determined can only be found thru the expertise of Julie Montante. Also...just as important as her educational abilities is the purity of her products. No other dispensary would afford me the opportunity to research their growing facility. I spent several hours with Julie and her growing staff at their Palm Springs growing facility, learning exactly how they are able to control the pure, organic growing process for the base medical marijuana products she 2 offers in her dispensary. Julie will soon be processing the pure oils from the plants. These oils are what I take. It is very important to understand that pharmaceutical prescription pain medications for inflammation, inflammation being the root cause of arthritic pain, does not reduce the inflammation enough to get to the root cause. With the educational information that Julie provided me, I learned to safely begin the use of these Medical Marijuana products...that I knew were safe, both in substance and dosage to begin to permanently reduce my inflammation. Based on all of my research and my professional journalistic investigative skills, I am asking you to approve the application of Julie Montante for the professional Medical Marijuana dispensary in the City of Palm Desert. Should you want more information from me or want me to address this important application before your public comments time during a Council meeting, I am prepared to do so. Thank you for your time to read this and vote to approve the dispensai application of Julie Montante. .1� 4 Patti Patane Patti I'ataric pattipatane.com patti ar pattipatane.com 760.578.0580 3 Stanley, Jane From: Sent: To: Cc: Subject: Good afternoon City Officials, Victoria Luick <vluick@icloud.com> Tuesday, October 24, 2017 3:47 PM sjohnathan@cityofpalmdesert.org; Kelly Aylaian, Lauri Cannabis on El Paseo RECEIVED CITY CLERK'S OFFICE ?81T OCT 24 PM 3: 50 , Kathleen; weber After reading the minutes from your recent council meeting regarding cannabis dispensaries within the City of Palm Desert, I am perplexed on how you differentiate between the "high end stores" and the "others" along El Paseo. Apparently you feel the businesses east of Larkspur are of a lower grade than those west of Larkspur, and that a cannabis store would be acceptable with the local retail, restaurant and other businesses along the eastern portion. There are plenty of places in Palm Desert available not along El Paseo. El Paseo is truly a tourist destination, but is also a family destination with its variety of restaurants, retails stores, and other businesses. And because it is a family destination for shopping and dining, I do NOT feel it is the location for a cannabis dispensary. El Paseo means "the walk". Families walk El Paseo both east and west of Larkspur. Children are inquisitive and like to look into windows and doorways. That is just their nature. There are sufficient problems for children growing up in today's world, and no adult should have to explain why a store if "off limits". If the City chooses to have a cannabis dispensary on El Paseo, then locate it on the second floor of any one of the buildings on El Paseo. There are several with space available. At least then the families including grandmothers out shopping with the grandchildren will not have to explain what cannabis means or anything else. And, please do not insult the businesses east of Larkspur. They may not be the Guccis of the area, but they support the city like everyone else. If a cannabis dispensary is good enough for the City and good enough for El Paseo, then it is good enough for anywhere alone El Paseo between Highway 111 on the east and Highway 111 on the west. First a cannabis dispensary, next a liquor store and finally a tattoo parlor will be coming to the "Rodeo Drive of the the desert" once the door is opened. Of course they will all be "high end" stores. Thank you for your time. I hope you will reconsider placement of the dispensary. Palm Desert is an easy city to navigate and everything is within easy reach for people. Victoria Luick Palm Desert Stanley, Jane From: Sent: To: Subject: Follow Up Flag: Due By: Flag Status: Hello, Ronald Marra <rsmarra760@gmail.com> Friday, October 13, 2017 8:50 AM CityhallMail Marijuana Shop Follow up Tuesday, October 24, 2017 4:00 PM Flagged RECEIVED y CLERK'S Off ACE. �I1 ,.fin 2911 OCT 24 PM 4: 08 What can I possibly say? A marijuana shop on El Paseo, Short -Term Rentals, Rock Concerts. Not the City it used to be and thought it still was when I retired here four years ago. I guess the pleasure of the Desert is only to be enjoyed by those behind exclusive walled communities so they can manage and profit from the havoc they cause for the rest of us with this nonsense. I would look elsewhere, but it appears like Palm Desert the world has gone to pot. Sincerely yours, Ronald S. Marra i