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HomeMy WebLinkAbout2024-07-16 PC Regular Meeting Agenda Packet PLANNING COMMISSION CITY OF PALM DESERT MEETING AGENDA Tuesday, July 16, 2024 6:00 p.m. Council Chamber, City Hall 73-510 Fred Waring Drive Palm Desert, California Pursuant to Assembly Bill 2449, this meeting will be conducted as a hybrid meeting and there will be in-person access to this location. To participate via Zoom, use the following link: https://palmdesert.zoom.us/j/84739707419 or call (213) 338-8477, Zoom Meeting ID: 847 3970 7419 • Written public comment may also be submitted to PlanningCommission@palmdesert.gov. E- mails received by 3:00 p.m. prior to the meeting will be distributed to the Commission. Any correspondence received during or after the meeting will be distributed to the Commission as soon as practicable and retained for the official record. Emails will not be read aloud except as an ADA accommodation. • Pages 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE 4.ELECTION OF PLANNING COMMISSION CHAIRPERSON AND VICE- CHAIRPERSON 5.NONAGENDA PUBLIC COMMENTS This time has been set aside for the public to address the Planning Commission on issues that are not on the agenda for up to three minutes. Speakers may utilize one of the three options listed on the first page of the agenda. Because the Brown Act does not allow the Planning Commission to act on items not listed on the agenda, members may briefly respond or refer the matter to staff for a report and recommendation at a future meeting. 6.CONSENT CALENDAR All matters listed on the Consent Calendar are considered routine and may be approved by one motion. The public may comment on any items on the Consent Agenda within the three-minute time limit. Individual items may be removed by the Planning Commission for a separate discussion. RECOMMENDATION: To approve the consent calendar as presented. 6.a APPROVAL OF MINUTES 5 RECOMMENDATION: Approve the Minutes of June 18, 2024. 7.CONSENT ITEMS HELD OVER 8.ACTION CALENDAR The public may comment on individual Action Items within the three-minute time limit. Speakers may utilize one of the three options listed on the first page of the agenda. 8.a PROVIDE DIRECTION ON CREATION OF LANDSCAPING REGULATION TASK FORCE 11 RECOMMENDATION: Provide direction on creation of a landscaping regulation task force 8.b CONSIDERATION OF A RECOMMENDATION OF APPROVAL TO THE PALM DESERT CITY COUNCIL FOR A PROPOSED MODIFICATION OF ZONING ORDINANCE AMENDMENT CASE NUMBER ZOA24-0002. 13 RECOMMENDATION: Adopt Planning Commission Resolution No. 2876 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND SECTIONS 25.16.030, 25.18.040, 25.28.070, 25.34.120, 25.68.020, AND 25.99.020 OF PALM DESERT MUNICIPAL CODE TITLE 25, WITH MODIFICATIONS MADE BY THE CITY COUNCIL, AND MAKING A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) 9.PUBLIC HEARINGS Anyone who challenges any hearing matter in court may be limited to raising only those issues he or she raised at the public hearing described herein, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. Remarks shall be limited to a maximum of three minutes unless the Planning Commission authorizes additional time. Planning Commission Meeting 2 9.a CONSIDER MODIFICATION OF CONDITIONAL USE PERMIT 17-0033 FOR THE OPERATION OF A CANNABIS BUSINESS AT 73818 DINAH SHORE DRIVE 89 RECOMMENDATION: Adopt Resolution No. 2870 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, MODIFYING CONDITIONAL USE PERMIT NO. 17-0033 WHICH ALLOWS THE OPERATION OF A CANNABIS BUSINESS ON THE PROPERTY LOCATED AT 73818 DINAH SHORE DRIVE” 9.b CONSIDERATION TO ADOPT A MITIGATED NEGATIVE DECLARATION AND APPROVE A CONDITIONAL USE PERMIT AND PRECISE PLAN FOR THE LIVING DESERT ZOO AND GARDENS EXPANSION PROJECT 119 RECOMMENDATION: Continue this item to a date certain of August 6, 2024. 9.c CONSIDERATION OF REVOCATION OF CONDITIONAL USE PERMIT NO. 17-0018 FOR THE OPERATION OF A CULTIVATION, MANUFACTURING, DISTRIBUTION, DELIVERY AND RETAIL CANNABIS BUSINESS LOCATED AT 42-650 MELANIE PLACE 121 RECOMMENDATION: Adopt Resolution No. 2878 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, REVOKING, IN ITS ENTIRETY, CONDITIONAL USE PERMIT NO. 17-0018 FOR THE OPERATION OF A CULTIVATION, MANUFACTURING, DISTRIBUTION, DELIVERY AND RETAIL CANNABIS BUSINESS LOCATED AT 42-650 MELANIE PLACE” 10.INFORMATIONAL REPORTS & COMMENTS 10.a SUMMARY OF CITY COUNCIL ACTIONS 10.b COMMITTEE MEETING UPDATES 10.b.1 Cultural Arts Committee 10.b.2 Parks and Recreation Committee 10.c PLANNING COMMISSIONERS 10.d CITY STAFF 10.e ATTENDANCE REPORT 161 11.ADJOURNMENT The next Regular Meeting will be held on August 6, 2024, at 6:00 p.m. Planning Commission Meeting 3 12.PUBLIC NOTICES Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.palmdesert.gov. Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda for the Planning Commission was posted on the City Hall bulletin board and City website not less than 72 hours prior to the meeting. /S/ Michelle Nance Deputy Clerk II Planning Commission Meeting 4 PLANNING COMMISSION CITY OF PALM DESERT REGULAR MEETING MINUTES June 18, 2024, 6:00 p.m. Present: Commissioner Nancy DeLuna, Commissioner Ron Gregory, Commissioner Lindsay Holt, Chair Joseph Pradetto Absent: Commissioner John Greenwood Staff Present: Deputy Director of Development Services Rosie Lua, Principal Planner Nick Melloni, Principal Planner Carlos Flores Liaison(s) Present: City Attorney Oscar Verdugo 1. CALL TO ORDER A Regular Meeting of the Planning Commission was called to order by Chairman Pradetto on Tuesday, June 18, 2024, at 6:00 p.m. in the Council Chamber, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE Commissioner Holt led the Pledge of Allegiance. 4. NON-AGENDA PUBLIC COMMENTS None. 5. CONSENT CALENDAR Motion by: Commissioner DeLuna Seconded by: Commissioner Holt To approve the consent calendar as presented. Motion Carried (3 to 0, with Commissioner Gregory abstaining) 5.a APPROVAL OF MINUTES Motion by: Commissioner DeLuna Seconded by: Commissioner Holt Approve the Minutes of June 4, 2024. Motion Carried (3 to 0, with Commissioner Gregory abstaining) 5 Palm Desert Planning Commission Meeting Minutes June 18, 2024 2 6. CONSENT ITEMS HELD OVER None. 7. ACTION CALENDAR None. 8. PUBLIC HEARINGS 8.a CONSIDERATION OF AN AMENDMENT OF A PRECISE PLAN AND CONDITIONAL USE PERMIT TO RELEASE REMAINDER PARCELS 4 & 5 OF TRACT 28818-1 OF THE MARRIOTT SHADOW RIDGE PROJECT AND FINDING THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Principal Planner Melloni narrated a PowerPoint presentation and responded to Commission inquiries. He noted the recommendation included an amendment to the draft resolution for the addition of Condition of Approval No. 3. Chair Pradetto opened the public hearing. Bill Vanos, Applicant, was available for questions. Chair Pradetto closed the public hearing, there being no member of the public wishing to speak. Motion by: Commissioner Gregory Seconded by: Commissioner DeLuna Adopt Planning Commission Resolution No. 2872 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT CALIFORNIA, APPROVING A SECOND AMENDMENT OF PRECISE PLAN AND CONDITIONAL USE PERMIT 98-5 APPROVED BY CITY COUNCIL RESOLUTION NO. 98-108 TO RELEASE DESIGNATED REMAINDER PARCELS 4 AND 5 OF TRACT 28818-1 FROM THE APPROVALS FOR THE MARRIOTT SHADOW RIDGE PROJECT LOCATED AT 9003 SHADOW RIDGE ROAD GENERALLY SOUTH OF GERALD FORD DRIVE AND EAST OF MONTEREY AVENUE AND FINDING THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)”, with amended conditions. CASE NO. CUP24-0005 (PP/CUP 98-5 Amendment No. 2) Motion Carried (4 to 0) 6 Palm Desert Planning Commission Meeting Minutes June 18, 2024 3 8.b CONSIDERATION OF A VESTING TENTATIVE TRACT MAP AND PRECISE PLAN TO DEVELOP A 93-UNIT SINGLE FAMILY RESIDENTIAL SUBDIVSION WITHIN MARRIOTT SHADOW RIDGE AND FINDING THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Principal Planner Melloni narrated a PowerPoint presentation and responded to Commission inquiries. He noted amendments to the conditions and requested that these be incorporated in the final motion. Chair Pradetto opened the public hearing. Eric Everhart, Applicant and Toll Brothers representative, narrated a PowerPoint presentation and responded to Commission inquiries. Commissioner Gregory questioned the use of non-native plants and cautioned the use of deciduous trees throughout the development. Chair Pradetto encouraged staff to review the guidelines to ensure the Applicants are set up to succeed. Chair Pradetto closed the public hearing, there being no member of the public wishing to speak. Motion by: Commissioner Gregory Seconded by: Commissioner DeLuna 1. Adopt Planning Commission Resolution No. 2873 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT CALIFORNIA, APPROVING VESTING TENTATIVE TRACT MAP NO. 38866 TO SUBDIVIDE APPROXIMATELY 20.69 - ACRES INTO 93 NUMBERED LOTS, AND 13 LETTERED LOTS FOR THE DEVELOPMENT OF A SINGLE-FAMILY RESIDENTIAL COMMUNITY WITH PRIVATE OPEN SPACE, LANDSCAPE AND VEHICULAR ACCESS LOCATED ON SHADOW RIDGE ROAD GENERALLY SOUTH OF GERALD FORD DRIVE AND EAST OF MONTEREY AVENUE AND FINDING THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)”, with amended conditions. CASE NO. VTTM 38866 (TTM23-0005) 2. Adopt Planning Commission Resolution No. 2874 entitl ed, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT CALIFORNIA, APPROVING A PRECISE PLAN FOR THE DEVELOPMENT OF A 93 UNIT SINGLE-FAMILY RESIDENTIAL SUBDIVISION LOCATED ON SHADOW RIDGE ROAD WITHIN THE EXISTING MARRIOTT SHADOW RIDGE DEVELOPMENT, AND FINDING THAT THE PROJECT IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”, with amended conditions. CASE NO. PP23-0023 Motion Carried (4 to 0) 7 Palm Desert Planning Commission Meeting Minutes June 18, 2024 4 8.c CONSIDER ADOPTING A NOTICE OF EXEMPTION AND APPROVING A CONDITIONAL USE PERMIT FOR AN OUTDOOR PATIO FOR DINING PURPOSES FOR AN EXISTING RESTAURANT AT 72990 EL PASEO, SUITE 3 Principal Planner Flores narrated a PowerPoint presentation and responded to Commission inquiries. Chair Pradetto opened the public hearing. Zayda Braun, the Applicant's representative, stated the patio had been very successful since its opening and noted that the object of the project is to increase pedestrian traffic to the west side of El Paseo. Commissioner Gregory requested clarification regarding the function of the storage container, The Applicant representative responded that the container would be used for patio furniture storage, trash enclosure screen, and to provide an additional server station for those on the patio. Responding to further question, the Applicant's representative noted the structure could be clad in alternate materials, and expressed that the Applicant was open to suggestions for improvement. Chair Pradetto closed the public hearing, there being no member of the public wishing to speak. Chair Pradetto suggested adding a condition to specify the storage container not be wrapped in vinyl and to return to the Planning Commission for further approval. Motion by: Chair Pradetto Seconded by: Commissioner DeLuna Direct the project be returned to the Architectural Review Commission to refine the storage container with a more elegant appearance and bring back to Planning Commission for further consideration. Motion Carried (4 to 0) 9. INFORMATIONAL REPORTS & COMMENTS 9.a SUMMARY OF CITY COUNCIL ACTIONS None. 9.b COMMITTEE MEETING UPDATES 9.b.1 Cultural Arts Committee Commissioner Holt reported the Dueling Palms sculpture was approved and noted black lava would be used as xeriscape. T he Committee also approved permanent art sculptures to be placed along Portola Avenue in North Palm Desert. 8 Palm Desert Planning Commission Meeting Minutes June 18, 2024 5 9.b.2 Parks and Recreation Committee None. 9.c PLANNING COMMISSIONERS Vice Chair Gregory noted a previous joint meeting held with Architectural Review Commission to align the direction of the commissions. Chair Pradetto suggested creating a taskforce with Commissioners Gregory and Pradetto, two commissioners from Architectural Review Commission, and staff, to review landscaping design guidelines and landscaping materials provided to applicants. 9.d CITY STAFF Deputy Director Lua informed the Commission that an appeal was filed relative to the Refuge project previously approved by the Planning Commission, and will be heard at the July 11, 2024, City Council meeting. A community meeting is scheduled on June 25, 2024, to provide information on the history and development of the site. 9.e ATTENDANCE REPORT The report was distributed in the agenda packet; no action was required. 10. ADJOURNMENT The Planning Commission adjourned at 7:29 p.m. 11. PUBLIC NOTICES _________________________ Níamh M. Ortega, CMC, Assistant City Clerk Recording Secretary _________________________ Richard Cannone, AICP, Director of Development Services Staff Liaison 9 10 Page 1 of 2 CITY OF PALM DESERT PLANNING COMMISSION STAFF REPORT MEETING DATE: July 16, 2024 PREPARED BY: Carlos Flores, AICP, Principal Planner REQUEST: PROVIDE DIRECTION ON CREATION OF LANDSCAPING REGULATION TASK FORCE RECOMMENDATION: Provide direction on creation of a landscaping regulation task force BACKGROUND/ANALYSIS: At the June 18, 2024, regular Planning Commission meeting, the Planning Commission (Commission) asked City staff to look into the creation of a task force that would review landscaping design guidelines and landscaping materials provided to applicants. Pursuant to Palm Desert Municipal Code (PDMC) Section 2.34.020, any task force established shall be created by the City Council via ordinance or resolution as it deems necessary. The City Council establishes the participants and guidelines for said task force. The Commission would need to establish specific intent, goals, and topics to provide a recommendation to Council for establishment of the task force. City staff seeks to provide additional context for past and future efforts made to review landscaping design guidelines and landscaping materials. Objective Design Guidelines. On April 11, 2024, the City adopted Residential and Mixed -Use Objective Design Standards (ODS) for multifamily and mixed use projects. This was approved after the Commission recommended approval of the ODS on April 2, 2024. The approval includes extensive landscaping design guidelines and standards that would be applied for all future multifamily and mixed-use projects and would be used as a reference for landscaping reviews moving forward. Unified Development Code On June 27, 2024, the City Council awarded a contract to Clarion Associates to create a Unified Development Code (UDC) for the City. A UDC combines traditional zoning and subdivision ordinances into a single document with the intended purpose of combining these regulations to streamline and coordinate development processes by removing inconsistencies and outdated development policies. A UDC will provide clear and consistent language and definitions across all definitions and utilize easy to understand communication tools to establish development regulations. Landscaping sections within the code will be included in this and will include workshops with the City’s Architectural Review Commission and Planning Commission. 11 City of Palm Desert – Planning Commission Landscaping Task Force Page 2 of 2 Joint Architectural Review Commission and Commission meetings As it has done in the past, the City anticipates setting up future joint meetings and/or workshops between the Architectural Review Commission (ARC) and Commission, where landscaping could be a topic of conversation. Provided that context, City staff seeks direction on the following: 1) Confirm the Commission’s desire to recommend that City Council establish a landscaping task force. 2) If confirmed, provide direction in the recommendation on specific intent, goals, and t opics for the task force. 12 Page 1 of 3 CITY OF PALM DESERT PLANNING COMMISSION STAFF REPORT MEETING DATE: July 16, 2024 PREPARED BY: Nick Melloni, AICP, Principal Planner REQUEST: CONSIDERATION OF A RECOMMENDATION OF APPROVAL TO THE PALM DESERT CITY COUNCIL FOR A PROPOSED MODIFICATION OF ZONING ORDINANCE AMENDMENT CASE NUMBER ZOA24-0002. RECOMMENDATION: Adopt Planning Commission Resolution No. 2876 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND SECTIONS 25.16.030, 25.18.040, 25.28.070, 25.34.120, 25.68.020, AND 25.99.020 OF PALM DESERT MUNICIPAL CODE TITLE 25, WITH MODIFICATIONS MADE BY THE CITY COUNCIL, AND M AKING A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) EXECUTIVE SUMMARY Adopting staff’s recommendation will approve a recommendation of approval to the City Council for a modified version of Zoning Ordinance Amendment (“ZOA”) Case No. ZOA24-0002. The Planning Commission previously recommended approval of ZOA24 -0002 to the City Council by Resolution No. 2871 on June 4, 2024. On June 27, 2024, the City Council approved a modified ordinance with all references to “cannabis microbusinesses” removed. This item is returning to the Planning Commission to satisfy procedural requirements of State law for modified ordinance amendments before it is passed to a second reading, which is tentatively scheduled for August 22, 2024. BACKGROUND/ANALYSIS: On June 4, 2024, the Planning Commission adopted Resolution No. 2871, recommending that the City Council approve Case No. ZOA24-0002 for a Zoning Ordinance Amendment (“ZOA”) with a 4-0 vote (Vice Chair Gregory absent). On June 27, 2024, the City Council considered the Planning Commission’s recommendation and passed a modified version of the proposed ordinance to a second reading. The modifications consist of removal of all references to “cannabis microbusinesses” found in Section 1 and Section 4 of the proposed ordinance. The modifications include:  Section 1 - PDMC Section 25.16.030 Land Use and Permit Requirements – removed “Cannabis Microbusiness” from the list of land uses in Table 25.16-1.  Section 4 – PDMC Section 25.34.120 Commercial Cannabis Business and Personal Cultivation – removed all references to cannabis microbusinesses from the section. 13 City of Palm Desert – Planning Commission Case Nos. ZOA24-0002 – Title 25 Zoning Ordinance Amendments Page 2 of 3 Pursuant to the ordinance as originally proposed, a “cannabis microbusiness” was defined as a business that engages in at least three (3) of the following commercial cannabis activities: 1. Indoor cultivation of cannabis in an area less than 10,000 square feet on the same licensed premises. 2. Distribution. 3. Manufacturing, limited to packaging and labeling of dried flower. 4. Non-storefront retailer (delivery only). The ordinance, as originally proposed, would have limited cannabis microbusinesses to one (1) business conditionally permitted in the Service Industrial (SI) zoning district. The sole cannabis microbusiness was the existing West Coast Cannabis Club (“WCCC”), located at 42-650 Melanie Place. The cannabis microbusiness land use was included in the proposed ordinance to allow WCCC, a non-conforming use, a path forward to become a legal and conforming use. On June 25, 2024, WCCC notified City staff that the business would officially cease operating on June 26, 2024, at 5:00 PM and would not be renewing their State Cannabis License. Due to the closure of WCCC, no existing cannabis microbusinesses wou ld remain in operation in the City of Palm Desert and there is no need to allow this use. As such, staff recommends that the City Council adopt a modified ordinance which removes all references to cannabis microbusinesses. In accordance with California Government Code Section 65857, the modified ordinance requires the Planning Commission to consider the modified ordinance for recommendation. The Planning Commission must consider the modified ordinance and make a recommendation prior to the City Council’s Second Reading of the Ordinance. Public Input: Public Notification In accordance with Government Code Section 65857, the Planning Commission is not required to hold a public hearing for consideration of the modified amendment. The item has been included on the Planning Commission Agenda. Environment Assessment/Environmental Review: The ordinance has previously been analyzed for compliance with the California Environmental Quality Act (CEQA)(Pub. Resources Code, § 21000 et seq.), and the state CEQA Guide lines (Cal. Code Regs., tit. 14, § 15000 et seq.). The ordinance has been found to be exempt pursuant to CEQA Guidelines Section 15061(b)(3), as there is no possibility that the activity in question may have a significant impact. Consequently, the activity is not subject to CEQA. Furthermore, the proposed modification is not anticipated to result in further environmental impacts and the project can be found exempt from further review. Findings of Approval: Findings can be made in support of the project und er the City’s Municipal Code. Findings in support of this project are contained in Planning Commission Resolution No. 2876, attached to this staff report. 14 City of Palm Desert – Planning Commission Case Nos. ZOA24-0002 – Title 25 Zoning Ordinance Amendments Page 3 of 3 LEGAL REVIEW: This staff report was reviewed by the City Attorney’s office. ATTACHMENTS: 1. Draft Planning Commission Resolution No. 2876 2. Planning Commission Resolution No. 2871 3. City Council Staff Report Dated June 27, 2024 4. Staff Memo to City Council regarding modification with Attachments 15 16 PLANNING COMMISSION RESOLUTION NO. 2876 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND SECTIONS 25.16.030, 25.18.040, 25.28.070, 25.34.120, 25.68.020, AND 25.99.020 OF PALM DESERT MUNICIPAL CODE TITLE 25, WITH MODIFICATIONS MADE BY THE CITY COUNCIL, AND MAKING A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) CASE NO. ZOA 24-0002 WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any and all adopted City of Palm Desert (“City”) zoning laws, ordinances, rules and regulations; and WHEREAS, the Zoning Ordinance Amendment (“ZOA”) was initiated by the Palm Desert Director of Community Development and modifies sections of the Palm Desert Municipal Code (PDMC) Title 25 (“Zoning”) to correct typos and change and update land uses and definitions; and WHEREAS, the City has complied with the requirements of the Local Planning and Zoning Law (Government Code section 65100 et seq.), and the City’s applicable ordinances and resolutions with respect to approval of amendments to Title 25 of the Palm Desert Municipal Code (“Zoning Ordinance”); and WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), and the City of Palm Desert’s (“City’s”) Local CEQA Guidelines, the City is the Lead Agency for the Project; and WHEREAS, the Project has complied with the requirements of the "City of Palm Desert Procedure for Implementation of CEQA” Resolution No. 2024-034, in that the Director of Development Services has determined that the Project will not have a foreseeable significant impact on the environment and that the Project is eligible for an exemption under Section 15061(b)(3) General Rule of the CEQA Guidelines; therefore, no further environmental review is necessary at this time; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on June 4, 2024, hold a duly noticed public hearing to consider the request by the City of Palm Desert and adopted Resolution No. 2871, recommending the City Council adopt ZOA24-0002; and 17 PLANNING COMMISSION RESOLUTION NO. 2876 2 WHEREAS, the City Council of the City of Palm Desert, California, did on June 27, 2024, hold a duly noticed public hearing to consider ZOA24-0002 and passed said amendment to a second reading with modifications; and WHEREAS, pursuant to Government Code Section 65857, any modification of the proposed ordinance or amendment by the City Council not previously considered by the Planning Commission during its hearing, shall first be referred to the Planning Commission for report and recommendation, but the Planning Commission shall not be required to hold a public hearing thereon; and WHEREAS, at its regularly scheduled meeting of July 16, 2024, the Planning Commission did consider the modifications made by the City Council to ZOA24 -0002: NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and 1. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. 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 PDMC amendments to Title 25 as shown in “Exhibit A”, which is attached hereto and incorporated herewith. SECTION 3. CEQA. The Planning Commission recommends that the City Council find that adoption of this Zoning Ordinance Amendment is not a “project,” as defined in the California Environmental Quality Act (“CEQA”), because it does not have a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and concerns general policy and procedures. SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this Zoning Ordinance Amendment 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 Zoning Ordinance Amendment 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 one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. 18 PLANNING COMMISSION RESOLUTION NO. 2876 3 SECTION 5. Project Recommendation. The Planning Commission hereby recommends to the Palm Desert City Council approval of Case No. ZOA24-0002 as depicted in “Exhibit A,” attached hereto; and SECTION 6. Execution of Resolution. The Chairperson of the Planning Commission signs this Resolution, and the Secretary to the Commission shall attest and certify the passage and adoption thereof. ADOPTED ON July 16, 2024. JOSEPH PRADETTO CHAIRPERSON ATTEST: RICHARD D. CANNONE, AICP SECRETARY I, Richard D. Cannone, AICP, Secretary of the City of Palm Desert Planning Commission, hereby certify that Resolution No. 2876 is a full, true, and correct copy, and was duly adopted at a regular meeting of the Planning Commission of the City of Palm Desert on July 16, 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on July ____, 2024. RICHARD D. CANNONE, AICP SECRETARY 19 PLANNING COMMISSION RESOLUTION NO. 2876 4 “EXHIBIT A” ZONING ORDINANCE AMENDMENT SECTION 1. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.16.030 is hereby amended as follows: 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 title. 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). Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.B / 25.42 Dwelling, duplex C C C C C C 25.16.040.B Dwelling, multifamily C C C C C C 25.16.040.B / 25.42 Dwelling, single-family C C C N C C 25.16.040.B Group home C C N N C C 25.16.040.B / 25.42 Single-room occupancies N N N N N C Homeless shelter N N N N N P Recreation, Resource Preservation, Open Space, and Public Assembly Uses Amusement facility, indoors N N C C C N Amusement facility, outdoors N N N C C N Community facility N N N N N P Day care center N A A A A N 20 PLANNING COMMISSION RESOLUTION NO. 2876 5 Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility, outdoor N N N P P N Institution, educational C C C N N C Institution, general C N C N N C Institution, religious C N C N N C Open space (developed or natural) N P P N P N Recreation facility, commercial N N P P P N Recreation facility, private N N N P P N Theater/auditorium N N P P N N Utility, Transportation, Public Facility, and Communication Uses Commercial communication tower C C C C C C 25.16.040.C Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility (utility or service) N N N N N P Utility facility N N C N N P Retail, Service, and Office Uses Accessory massage establishment P N P P P N 25.34.160 Adult entertainment N N N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P Cannabis Storefront retail N C C C C N 25.34.120 Cannabis testing and research laboratory N N N N N N 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P P P N N Grocery store N P P P N N 25.16.040.F Health club, gyms or studios N A P P P A Hotel N A A A P N 25.34.070 Independent stand-alone massage N N P P N N 25.34.160 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 P N N Medical, office P P P P N N Medical, hospital N N N N N C Medical, laboratory P N N N N P Medical office, accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office, professional P N P P P P Office, local government P N N N N P Office, travel agency P P P P P N Outdoor sales N N A A A A Personal services N P P P P N 21 PLANNING COMMISSION RESOLUTION NO. 2876 6 Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Restaurant A A A A P A 25.16.040.E / H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N Time-share project N N N C C N Veterinary clinics/animal hospitals A N A A N A Pet boarding N A A A N A Automobile and Vehicle Uses Automotive rental agency N N N N P P Automotive gasoline station N N C C N C 25.34.090 Automotive service facility N N C C N P 25.34.090 Automotive sales new and used (indoor) N N N N N A Automotive sales new and used (outdoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility N N N N N P 25.16.040.I Industrial, Manufacturing, and Processing Uses Cannabis cultivation N N N N N N 25.34.120 Cannabis delivery N N N N N N 25.34.120 Cannabis distribution N N N N N N 25.34.120 Cannabis manufacturing N N N N N N 25.34.120 Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N N N N P Temporary Uses See Section 25.34.080 1 The establishment may be permitted with an administrative use permit but may be elevated to a conditional use permit at the discretion of the ZA based on: parking, traffic, or other impacts. SECTION 2. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code section 25.18.040 is hereby amended as follows: 25.18.040 Land Use and Permit Requirements 22 PLANNING COMMISSION RESOLUTION NO. 2876 7 Table 25.18-1 (Use Matrix for Downtown Districts) identifies allowed uses and corresponding permit requirements for the downtown 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 that use type are located within this title. 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). TABLE 25.18-1. USE MATRIX FOR DOWNTOWN DISTRICTS P = use permitted by right A = use requires administrative use permit C = use requires approval of conditional use permit N = use not permitted Land Use Zone Special Use Provisions D D-O DE DE-O Residential Uses Accessory dwelling unit P P P P 25.34.030 Assisted Living N N N C Condominium C 1 C 1 C C 25.16.040.B Dwelling, duplex C 1 C 1 C P 25.16.040.B Dwelling, multifamily C 1 C 1 C P 25.16.040.B Dwelling, single-family C 1 C 1 C N 25.16.040.B Group home C 1 C 1 C N 25.16.040.B Junior accessory dwelling unit P P P P 25.34.030 Home-based business P4 P4 P4 P4 25.34.020 Agriculture-Related Uses Garden, private C 1 C 1 N P Greenhouse, private N N C P Horticulture, private N N C P Recreation, Resources Preservation, Open Space, and Public Assembly Uses Club, private N N N C Day care center C 1 C 1 N N Day care, large family N N N P 25.10.040.F Day care, small family N N N P Institution, educational N N C C Institution, general N N C C 23 PLANNING COMMISSION RESOLUTION NO. 2876 8 Land Use Zone Special Use Provisions D D-O DE DE-O Institution, religious N N C C Mechanical or electronic games, ≤ 4 P 1 P 1 P N Mechanical or electronic games, ≥ 5 C 1, 2 C 1, 2 C N Recreational facility, incidental N N N C 25.10.040.H Recreation facility, private N N N P Recreation facility, public N N N C Retail, Service, and Office Uses Accessory massage establishments P P P N 25.34.160 Ancillary commercial N N A N 25.16.040.E Animal Clinic C1,6 C1,6 C1,6 N 25.34.210 Art gallery P P P A Art studio P 1 P 1 A A Book and card shops P P N N Bed and breakfast N N C C Cannabis Storefront retail C N C N 25.34.120 Cannabis testing and research laboratory N N N N 25.34.120 Clothing and apparel shops P P P N Convention and visitors bureau P 1 P 1 C N Drugstore P 1 P 1 N N Financial institution P 1 P 1 C N Furniture stores and home furnishings P P P N Gift and accessories boutiques (including small antiques) P P P N Grocery store < 35,000 SF C 1 C 1 N N Health club, gyms or studios C 1 , 2 C 1 , 2 C 2 N Hotel C C C C Independent stand-alone massage establishments P 1 P 1 C N 25.34.160 Jewelry shops P P P N Liquor store P 1 P 1 N N Liquor, beverage and food items shop P 1 P 1 N N Luggage shops P P P N Medical, clinic P 1 P 1 P N Medical, office P 1 P 1 P A5 Medical, hospital P 1 P 1 C C Medical, laboratory N N P N Mortuary C 1 C 1 N N Office, professional P 3 P 3 P P3 25.28.040.C 24 PLANNING COMMISSION RESOLUTION NO. 2876 9 Land Use Zone Special Use Provisions D D-O DE DE-O Office, local government P 1 P 1 P N Office, neighborhood government N N N C Office, travel agency P 3 P 3 P N 25.10.040.K Outdoor sales A 1 A 1 A N Personal services P P P N Restaurant C 2 C 2 C 1 N 25.16.040.H Retail P P P N Retail, bulky items P 1 P 1 C N Retail, Golf carts and neighborhood electric vehicles (NEV) C N C N 25.34.190 Spa P P P C Sundries shops (general merchandise) P P P N Time-share project C 1 C 1 N N Utility, Transportation, Public Facility, and Communication Uses Fire station C C C C Commercial communication tower C C C Commercial parking lot P P C C 25.10.040.I Office parking lot N N N C 25.10.040.L Public service facility N N N C Utility facility N N N C Utility installation C C N N Automobile and Vehicle Uses Automotive rental agency P P C N Automotive service station C C N N Temporary Uses See Section 25.34.080 1 Uses prohibited along El Paseo facing ground floor frontages. 2 The establishment may be permitted with an administrative use permit but may be elevated to a conditional use permit at the discretion of the ZA based on parking, traffic, or other impacts. 3 Office professional uses along El Paseo facing ground floor frontages within the El Paseo Overlay District may be allowed subject to a Conditional Use Permit per Section 25.28.040 El Paseo Overlay District. 4 Home Occupation Uses are permitted in residential dwelling units in approved residential and mixed-use developments. 25 PLANNING COMMISSION RESOLUTION NO. 2876 10 5. Medical Offices existing and operating with an appropriate City business license prior to 2023 are permitted by right to continue operating without requiring an Administrative Use Permit. 6. Use only permitted on properties with frontage along Highway 111. SECTION 3. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.28.070 is hereby amended as follows: 25.28.070 Freeway Commercial Overlay Zone A. Purpose and applicability. The purpose of the Freeway Commercial Overlay Zone (FCOZ) district is to provide optional standards and incentives for the development of a variety of commercial uses. Whenever the FCOZ has been added to a base zone, the owner/applicant may choose whether to use the optional FCOZ standards or the standards of the base zone. In order to obtain approval of uses only permitted in the FCOZ, the project must utilize FCOZ standards. B. Conditional uses. Uses permitted by approved conditional use permit shall be as follows: 1. Restaurants, general, including drive-through restaurants. 2. Automobile service stations without regard to the required separation distance provisions per Section 25.34.090 (Automotive Service Stations). 3. Convenience stores. 4. Car washes. 5. Combinations of 2 or more of the above uses. 6. Hotel. 7. Commercial recreation and amusement establishments. 8. Personal storage. 9. Outdoor recreational vehicle and boat storage. 10. Automotive Sales New and Uses (Outdoor). Automotive Sales New and Used (Indoor) may be permitted by administrative use permit in accordance with Chapter 25.64. 26 PLANNING COMMISSION RESOLUTION NO. 2876 11 C. Development standards. Projects proposed under this chapter shall be master planned and the master plan shall be approved by the Commission prior to any construction activity. The master plan approval is subject to the following: 1. Development of individual projects within the approved master plan shall be processed through the precise plan process. 2. Property to be master planned shall be at least 5 acres in size and shall have frontage on a designated arterial street. 3. Drive-up lanes and window facilities shall be designed in a manner that they are not visible from an arterial street. 4. Development standards shall generally be flexible to ensure efficient site planning and to foster the creation of attractive developments. 5. Automobile service stations shall comply with the requirements of Section 25.34.090 (Automotive Service Stations). D. Required on-site parking. The required number of parking spaces for a combined development shall be cumulative for all proposed uses. The Commission may reduce the required parking where it is clearly demonstrated that a shared use will occur (i.e., a restaurant which serves a hotel), or with a showing of good cause, the Commission may increase the number of parking spaces required. E. Setbacks. Setbacks shall be as prescribed in the base zone and/or automobile service stations pursuant to Section 25.34.090 (Automotive Service Stations). F. Landscaping. All master planned projects approved through the FCOZ process shall provide a minimum of at least 30 percent landscaped open space, of which at least half of the common usable public space can inc lude a picnic area, a dog park, or a kids land, as well as landscaped setback areas. With a showing of good cause, the Commission may decrease the minimum landscaped open space requirement. (Ord. 1324 § 7, 2017; Ord. 1303 § 5, 2016; Ord. 1302 § 4, 2016; Ord. 1259 § 1, 2013) SECTION 4: Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.34.120 is hereby amended as follows: 25.34.120. Cannabis Business and Personal Cultivation. A. Purpose and intent. It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, retail sale and personal cultivation, of medicinal cannabis and non -medicinal adult- use cannabis within the City of Palm Desert. This sec tion is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), 27 PLANNING COMMISSION RESOLUTION NO. 2876 12 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. 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. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under state law. B. Definitions. For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a conditional use permit under this chapter. "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 t he 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 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. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "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 business which engages in the medicinal or adult-use commercial cannabis activity authorized by this Chapter. "Cultivation" means any activity involving the plantin g, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Daycare center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers. 28 PLANNING COMMISSION RESOLUTION NO. 2876 13 "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 permitted or licensed by the City and/or State of California. “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. "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 California Business and Professions Code. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. “Non-Storefront retailer” is a business that is closed to the public and provides cannabis or cannabis product to customers solely by means of a delivery service which the retailer owns and controls. "Permittee" means any person granted a conditional use permit under this chapter. "Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Private residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. "Storefront Retail cannabis business" or "storefront retailer" or "Cannabis Storefront retail ” means a business that sells cannabis or cannabis products to customer s. Storefront retailers may also deliver cannabis or cannabis products to customers. "Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delive ry of cannabis or cannabis products pursuant to an order placed for the purchase of the same and 29 PLANNING COMMISSION RESOLUTION NO. 2876 14 soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video a rcades, or similar amusement park facilities. C. Conditional use permit required. 1. The City may authorize a total of 6 conditional use permits for retail cannabis businesses to operate in the City of Palm Desert. No more than 1 retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants shall be made by a process, and subject to criteria, established by City Council resolution. Conditional use permits for all other commercial cannabis businesses shall be issued in accordance with the zoning and separation requirements established in this section. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit, regulatory permit as required under Chapter 5.101, and a state license for each commercial cannabis business use authorized under the conditional use permit. Unless otherwise stated in this section, the provisions found in Section 25.72.050 Conditional Use Permit, shall apply. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a state license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in state license type, business owner, or operation will require an amendment to the approved conditional use permit. 4. A cannabis delivery service business with a physical address outside the City is not required to obtain a conditional use permit under this chapter, but is required to obtain a City business license. 30 PLANNING COMMISSION RESOLUTION NO. 2876 15 5. This section does not apply to cannabis possession or use, as allowed by state law. Regulations regarding personal use can be found in Chapter 8.38. D. Permitted locations and standards. 1. Commercial cannabis businesses may operate in the City's commercial, industrial, office, 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, with the exception of the City's Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory permit, and state license. a. Storefront Retailers are conditionally permitted in the Planned Commercial ("PC") -1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No more than 6 conditional use permits will be issued for retail cannabis businesses. No more than 3 retail cannabis businesses may locate on any single street, and no more than 1 retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. b. Distribution businesses are conditionally permitted in conjunction with a storefront retailer and the distribution activities shall be limited to the physical location that both uses occupy. 2. Commercial cannabis businesses shall conform to the following separation requirements: a. No conditional use permit shall be issued to a storefront retailer that is located within 1,500 feet of another approved commercial cannabis business. No more than 3 cannabis retailers will be permitted to operate on a single street. b. A cannabis business within the Service Industrial zoning district shall be separated by 1,500 feet from another approved cannabis business. c. No conditional use permit will be issued for commercial cannabis business located within 1,000 feet of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued. d. 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, daycare center and youth center. 31 PLANNING COMMISSION RESOLUTION NO. 2876 16 3. Conditional use permit submittal requirements. In addition to the requirements listed in the conditional use permit, all commercial cannabis business applicants shall submit the following information: a. Exterior façade. Renderings of the business façade shall be provided and reviewed as part of the conditional use permit. Building façade plans shall include renderings of the exterior building elevations for all sides of the building. All building façades 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 façade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. E. Grounds for permit denial, suspension, and revocation. Any conditional use permit issued pursuant to the provisions of this section may be denied, suspended, or revoked by the Planning Commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee: 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 failed to maintain a valid state license; 3. Has failed to comply with any applicable provision of the Palm Desert Municipal Code, including, but not limited to, this chapter, the City's building, zoning, and health and public safety regulations; 4. Has failed to comply with any condition imposed on the conditional use permit; or 5. Has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. 6. No conditional use permit will be issued where commercial cannabis businesses are prohibited by covenants, condition s, and restrictions (CC&Rs) that clearly prohibit such use. For buildings located in any area governed by CC&Rs, the applicant must additionally submit a statement certifying that any applicable CC&Rs do not prohibit the use for which the applicant is seek ing approval. 32 PLANNING COMMISSION RESOLUTION NO. 2876 17 F. Personal cultivation. City residents are permitted to cultivate cannabis on private residential property for personal use and in accordance with MAUCRSA, subject to the following standards: 1. Outdoor cultivation. a. Cultivation for personal use is only permitted on private residential property developed with at least 1 residential dwelling unit. No more than 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 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, daycare center, or youth center is prohibited. 2. 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 Building and Safety Department. 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, propa ne, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. G. Application fee and reimbursement agreement. At the time an applicant submits an application under this section, the applicant shall also supply an application fee in an amount to be determined by resolution by the City Council, an executed reimbursement agreement on a form provided by the City to fully reimburse the City for all costs, expenses, and fees, including, but not limited to, attorney fees and consultant fees, incurred by the City related to the commercial cannabis business, and a deposit in an amount as provided for in the reimbursement agreement terms. H. Prohibited operations. Any commercial cannabis business that does not have: (1) an approved conditional use permit; (2) a regulatory permit required under this code; and (3) a state license is expressly prohibited in all City zones and is hereby declared a public 33 PLANNING COMMISSION RESOLUTION NO. 2876 18 nuisance that may be abated by the City and is subject to all available legal remedies, including, but not limited to, civil injunctions. I. Violations and penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation, if applicable. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the City from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. SECTION 5: Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.68.020 is hereby amended as follows: 25.68.020 Design Review Required A. Purpose and applicability. Design review allows for specified projects to be reviewed by the ARC to ensure that design objectives of Palm Desert as specified in the General Plan are achieved. Design review is required, as follows: 1. Prior to permit issuance. No plan, elevation for buildings or structures, or alterations shall be approved and no permit shall be issued for any building, structure, sign, or other development of property or appurtenances or alterations thereto, except in single-family residential districts and developments subject t o Objective Design Standards requirements of Chapter 25.42, without review and approval by the ARC. 2. The ARC shall review all plans submitted with applications for moving buildings within or into the City. Photographs shall be included with the application showing all elevations, the structure proposed to be moved, the proposed site, and the buildings adjacent to the proposed site. The ARC shall determine whether the building proposed to be moved will fit harmoniously into the neighborhood wherein it is to be 34 PLANNING COMMISSION RESOLUTION NO. 2876 19 located. It may approve, approve with conditions, or disapprove the issuance of a permit to move such building. 3. The ARC shall review all plans for new two-story residential dwellings and second story additions within the R-2 Zoning District as required by Table 25.10-3 (Residential Zoning District Development Standards) to ensure second stories are compatible with surrounding homes including massing, materials, and considers privacy of adjacent neighbors. The ARC design review shall incl ude the following: a. The mass and bulk of the design should be reasonably compatible with the predominant neighborhood pattern. New construction should not be disproportionately larger than, or out of scale with, the neighborhood pattern in terms of building forms, roof pitches, eave heights, ridge heights, and entry feature heights. b. Placement of windows and doors should have minimal impact to the neighboring property. c. Line of sight analysis shall be provided. d. To mitigate privacy impacts of new two-story homes and additions, tree and/or shrub planting is required. i. Applicability. These requirements shall apply to new two-story homes, two- story additions, and/or new windows on existing two -story homes that increase privacy impacts on neighboring residents. e. Planting plan. Proposals for new two -story homes, two-story additions, and/or new windows on existing two-story homes shall be accompanied by a planting plan which identifies the location, species and canopy diameter of existing and proposed trees or shrubs to meet the requirements. SECTION 6. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.99.020 Land Use Definitions is hereby amended with the following removals and additions to the existing section: Automotive sales new and used (outdoor/indoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automotives can take place outdoors or indoors. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include s ervice stations, which are separately defined. 35 PLANNING COMMISSION RESOLUTION NO. 2876 20 Automotive sales new and used (indoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automotives occurs only indoors within an enclosed commercial building. Displays located outside of a building are not included. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. Automotive sales new and used (outdoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automotives can take place outdoors or indoors. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. 36 PLANNING COMMISSION RESOLUTION NO. 2871 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND SECTIONS 25.16.030, 25.18.040, 25.28.070, 25.34.120, 25.68.020, AND 25.99.020 OF PALM DESERT MUNICIPAL CODE TITLE 25 AND MAKING A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) CASE NO. ZOA 24-0002 WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any and all adopted City of Palm Desert (“City”) zoning laws, ordinances, rules and regulations; and WHEREAS, the Zoning Ordinance Amendment (ZOA) is initiated by the Palm Desert Director of Community Development and modifies sections of the Palm Desert Municipal Code (PDMC) Title 25 (Zoning) to correct typos, to change and update land uses and definitions; and WHEREAS, the City has complied with the requirements of the Local Planning and Zoning Law (Government Code section 65100 et seq.), and the City’s applicable ordinances and resolutions with respect to approval of amendments to Title 25 of the Palm Desert Municipal Code (“Zoning Ordinance”); and WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), and the City of Palm Desert’s (“City’s”) Local CEQA Guidelines, the City is the lead agency for the Project; and WHEREAS, the Project has complied with the requirements of the "City of Palm Desert Procedure for Implementation of CEQA” Resolution No. 2019-41, in that the Director of Development Services has determined that the Project will not have a foreseeable significant impact on the environment and that the Project is eligible for an exemption under Section 15061(b)(3) General Rule of the CEQA Guidelines; therefore, no further environmental review is necessary at this time; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on June 4, 2024, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of Zoning Ordinance Amendment (“ZOA”) 24-0002; and WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the Planning DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 37 PLANNING COMMISSION RESOLUTION NO. 2871 2 Commission did find the following facts and reasons, which are outlined in the staff report, to exist to justify approval of said request: NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and 1. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. 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 PDMC amendments to Title 25 as shown in “Exhibit A”, which is attached hereto and incorporated herewith. SECTION 3. CEQA. The Planning Commission does recommend that the City Council finds that adoption of this ordinance is not a “project,” as defined in the California Environmental Quality Act (CEQA) because it does not have a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and concerns general policy and procedures. SECTION 4. 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 one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 5. Project Recommendation. The Planning Commission hereby recommends to the Palm Desert City Council approval of Case No. ZOA24-0002 as depicted in Exhibit A, attached hereto; and SECTION 6. Execution of Resolution. The Chairperson of the Planning Commission signs this Resolution, and the Secretary to the Commission shall attest and certify the passage and adoption thereof. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 38 PLANNING COMMISSION RESOLUTION NO. 2871 3 ADOPTED ON June 4, 2024. JOSEPH PRADETTO CHAIRPERSON ATTEST: RICHARD D. CANNONE, AICP SECRETARY I, Richard D. Cannone, AICP, Secretary of the City of Palm Desert Planning Commission, hereby certify that Resolution No. 2871 is a full, true, and correct copy, and was duly adopted at a regular meeting of the Planning Commission of the City of Palm Desert on June 4, 2024, by the following vote: AYES: DELUNA, GREENWOOD, HOLT, PRADETTO NOES: NONE ABSENT: GREGORY ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on July _3_, 2024. RICHARD D. CANNONE, AICP SECRETARY DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 39 PLANNING COMMISSION RESOLUTION NO. 2871 4 “EXHIBIT A” ZONING ORDINANCE AMENDMENT SECTION 1. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.16.030 is hereby amended as follows: 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 title. 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). Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.B / 25.42 Dwelling, duplex C C C C C C 25.16.040.B Dwelling, multifamily C C C C C C 25.16.040.B / 25.42 Dwelling, single-family C C C N C C 25.16.040.B Group home C C N N C C 25.16.040.B / 25.42 Single-room occupancies N N N N N C Homeless shelter N N N N N P Recreation, Resource Preservation, Open Space, and Public Assembly Uses Amusement facility, indoors N N C C C N Amusement facility, outdoors N N N C C N Community facility N N N N N P Day care center N A A A A N DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 40 PLANNING COMMISSION RESOLUTION NO. 2871 5 Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility, outdoor N N N P P N Institution, educational C C C N N C Institution, general C N C N N C Institution, religious C N C N N C Open space (developed or natural) N P P N P N Recreation facility, commercial N N P P P N Recreation facility, private N N N P P N Theater/auditorium N N P P N N Utility, Transportation, Public Facility, and Communication Uses Commercial communication tower C C C C C C 25.16.040.C Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility (utility or service) N N N N N P Utility facility N N C N N P Retail, Service, and Office Uses Accessory massage establishment P N P P P N 25.34.160 Adult entertainment N N N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P Cannabis Storefront retail N C C C C N 25.34.120 Cannabis testing and research laboratory C N N N N C 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P P P N N Grocery store N P P P N N 25.16.040.F Health club, gyms or studios N A P P P A Hotel N A A A P N 25.34.070 Independent stand-alone massage N N P P N N 25.34.160 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 P N N Medical, office P P P P N N Medical, hospital N N N N N C Medical, laboratory P N N N N P Medical office, accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office, professional P N P P P P Office, local government P N N N N P Office, travel agency P P P P P N Outdoor sales N N A A A A Personal services N P P P P N DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 41 PLANNING COMMISSION RESOLUTION NO. 2871 6 Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Restaurant A A A A P A 25.16.040.E / H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N Time-share project N N N C C N Veterinary clinics/animal hospitals A N A A N A Pet boarding N A A A N A Automobile and Vehicle Uses Automotive rental agency N N N N P P Automotive gasoline station N N C C N C 25.34.090 Automotive service facility N N C C N P 25.34.090 Automotive sales new and used (outdoor/indoor) N N N N N C (outdoor) A (indoor) Automotive sales new and used (indoor) N N N N N A Automotive sales new and used (outdoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility N N N N N P 25.16.040.I Industrial, Manufacturing, and Processing Uses Cannabis cultivation N N N N N C 25.34.120 Cannabis delivery N N N N N C 25.34.120 Cannabis distribution N N N N N C 25.34.120 Cannabis manufacturing N N N N N C 25.34.120 Cannabis Microbusiness N N N N N C 25.34.120 Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N N N N P Temporary Uses See Section 25.34.080 1 The establishment may be permitted with an administrative use permit but may be elevated to a conditional use permit at the discretion of the ZA based on: parking, traffic, or other impacts. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 42 PLANNING COMMISSION RESOLUTION NO. 2871 7 SECTION 2. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code section 25.18.040 is hereby amended as follows: 25.18.040 Land Use and Permit Requirements Table 25.18-1 (Use Matrix for Downtown Districts) identifies allowed uses and corresponding permit requirements for the downtown 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 that use type are located within this title. 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). TABLE 25.18-1. USE MATRIX FOR DOWNTOWN DISTRICTS P = use permitted by right A = use requires administrative use permit C = use requires approval of conditional use permit N = use not permitted Land Use Zone Special Use Provisions D D-O DE DE-O Residential Uses Accessory dwelling unit P P P P 25.34.030 Assisted Living N N N C Condominium C 1 C 1 C C 25.16.040.B Dwelling, duplex C 1 C 1 C P 25.16.040.B Dwelling, multifamily C 1 C 1 C P 25.16.040.B Dwelling, single-family C 1 C 1 C N 25.16.040.B Group home C 1 C 1 C N 25.16.040.B Junior accessory dwelling unit P P P P 25.34.030 Home-based business P4 P4 P4 P4 25.34.020 Agriculture-Related Uses Garden, private C 1 C 1 N P Greenhouse, private N N C P Horticulture, private N N C P Recreation, Resources Preservation, Open Space, and Public Assembly Uses Club, private N N N C DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 43 PLANNING COMMISSION RESOLUTION NO. 2871 8 Land Use Zone Special Use Provisions D D-O DE DE-O Day care center C 1 C 1 N N Day care, large family N N N P 25.10.040.F Day care, small family N N N P Institution, educational N N C C Institution, general N N C C Institution, religious N N C C Mechanical or electronic games, ≤ 4 P 1 P 1 P N Mechanical or electronic games, ≥ 5 C 1, 2 C 1, 2 C N Recreational facility, incidental N N N C 25.10.040.H Recreation facility, private N N N P Recreation facility, public N N N C Retail, Service, and Office Uses Accessory massage establishments P P P N 25.34.160 Ancillary commercial N N A N 25.16.040.E Animal Clinic C1,6 C1,6 C1,6 N 25.34.210 Art gallery P P P A Art studio P 1 P 1 A A Book and card shops P P N N Bed and breakfast N N C C Cannabis Storefront retail C N C N 25.34.120 Cannabis testing and research laboratory C N N N 25.34.120 Clothing and apparel shops P P P N Convention and visitors bureau P 1 P 1 C N Drugstore P 1 P 1 N N Financial institution P 1 P 1 C N Furniture stores and home furnishings P P P N Gift and accessories boutiques (including small antiques) P P P N Grocery store < 35,000 SF C 1 C 1 N N Health club, gyms or studios C 1 , 2 C 1 , 2 C 2 N Hotel C C C C Independent stand-alone massage establishments P 1 P 1 C N 25.34.160 Jewelry shops P P P N Liquor store P 1 P 1 N N Liquor, beverage and food items shop P 1 P 1 N N DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 44 PLANNING COMMISSION RESOLUTION NO. 2871 9 Land Use Zone Special Use Provisions D D-O DE DE-O Luggage shops P P P N Medical, clinic P 1 P 1 P N Medical, office P 1 P 1 P A5 Medical, hospital P 1 P 1 C C Medical, laboratory N N P N Mortuary C 1 C 1 N N Office, professional P 3 P 3 P P3 25.28.040.C Office, local government P 1 P 1 P N Office, neighborhood government N N N C Office, travel agency P 3 P 3 P N 25.10.040.K Outdoor sales A 1 A 1 A N Personal services P P P N Restaurant C 2 C 2 C 1 N 25.16.040.H Retail P P P N Retail, bulky items P 1 P 1 C N Retail, Golf carts and neighborhood electric vehicles (NEV) C N C N 25.34.190 Spa P P P C Sundries shops (general merchandise) P P P N Time-share project C 1 C 1 N N Utility, Transportation, Public Facility, and Communication Uses Fire station C C C C Commercial communication tower C C C Commercial parking lot P P C C 25.10.040.I Office parking lot N N N C 25.10.040.L Public service facility N N N C Utility facility N N N C Utility installation C C N N Automobile and Vehicle Uses Automotive rental agency P P C N Automotive service station C C N N Temporary Uses See Section 25.34.080 1 Uses prohibited along El Paseo facing ground floor frontages. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 45 PLANNING COMMISSION RESOLUTION NO. 2871 10 2 The establishment may be permitted with an administrative use permit but may be elevated to a conditional use permit at the discretion of the ZA based on parking, traffic, or other impacts. 3 Office professional uses along El Paseo facing ground floor frontages within the El Paseo Overlay District may be allowed subject to a Conditional Use Permit per Section 25.28.040 El Paseo Overlay District. 4 Home Occupation Uses are permitted in residential dwelling units in approved residential and mixed-use developments. 5. Medical Offices existing and operating with an appropriate City business license prior to 2023 are permitted by right to continue operating without requiring an Administrative Use Permit. 6. Use only permitted on properties with frontage along Highway 111. SECTION 3. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.28.070 is hereby amended as follows: 25.28.070 Freeway Commercial Overlay Zone A. Purpose and applicability. The purpose of the Freeway Commercial Overlay Zone (FCOZ) district is to provide optional standards and incentives for the development of a variety of commercial uses. Whenever the FCOZ has been added to a base zone, the owner/applicant may choose whether to use the optional FCOZ standards or the standards of the base zone. In order to obtain approval of uses only permitted in the FCOZ, the project must utilize FCOZ standards. B. Conditional uses. Uses permitted by approved conditional use permit shall be as follows: 1. Restaurants, general, including drive-through restaurants. 2. Automobile service stations without regard to the required separation distance provisions per Section 25.34.090 (Automotive Service Stations). 3. Convenience stores. 4. Car washes. 5. Combinations of 2 or more of the above uses. 6. Hotel. 7. Commercial recreation and amusement establishments. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 46 PLANNING COMMISSION RESOLUTION NO. 2871 11 8. Personal storage. 9. Outdoor recreational vehicle and boat storage. 10. Automotive Sales New and Used (Outdoor). Automotive Sales New and Used (Indoor) may be permitted by Administrative Use Permit in accordance with Chapter 25.64. C. Development standards. Projects proposed under this chapter shall be master planned and the master plan shall be approved by the Commission prior to any construction activity. The master plan approval is subject to the following: 1. Development of individual projects within the approved master plan shall be processed through the precise plan process. 2. Property to be master planned shall be at least 5 acres in size and shall have frontage on a designated arterial street. 3. Drive-up lanes and window facilities shall be designed in a manner that they are not visible from an arterial street. 4. Development standards shall generally be flexible to ensure efficient site planning and to foster the creation of attractive developments. 5. Automobile service stations shall comply with the requirements of Section 25.34.090 (Automotive Service Stations). D. Required on-site parking. The required number of parking spaces for a combined development shall be cumulative for all proposed uses. The Commission may reduce the required parking where it is clearly demonstrated that a shared use will occur (i.e., a restaurant which serves a hotel), or with a showing of good cause, the Commission may increase the number of parking spaces required. E. Setbacks. Setbacks shall be as prescribed in the base zone and/or automobile service stations pursuant to Section 25.34.090 (Automotive Service Stations). F. Landscaping. All master planned projects approved through the FCOZ process shall provide a minimum of at least 30 percent landscaped open space, of which at least half of the common usable public space can include a picnic area, a dog park, or a kids land, as well as landscaped setback areas. With a showing of good cause, the Commission may decrease the minimum landscaped open space requirement. (Ord. 1324 § 7, 2017; Ord. 1303 § 5, 2016; Ord. 1302 § 4, 2016; Ord. 1259 § 1, 2013) DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 47 PLANNING COMMISSION RESOLUTION NO. 2871 12 SECTION 4: Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.34.120 is hereby amended as follows: 25.34.120. Commercial Cannabis Business and Personal Cultivation A. Purpose and intent. It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, retail sale and personal cultivation, of medicinal cannabis and non-medicinal adult-use 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 ("MMP"), 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. 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. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under state law. B. Definitions. For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a conditional use permit under this chapter. "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 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. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "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. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 48 PLANNING COMMISSION RESOLUTION NO. 2871 13 "Commercial cannabis business" means any business which engages in the medicinal or adult-use commercial cannabis activity defined and authorized by this Chapter. commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing and research, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Daycare center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers. "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 permitted or licensed by the City and/or State of California. “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. "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 California Business and Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of 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 cannabis or cannabis products or labels or relabels its container. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 49 PLANNING COMMISSION RESOLUTION NO. 2871 14 “Non-Storefront retailer” is a business that is closed to the public and provides cannabis or cannabis product to customers solely by means of a delivery service which the retailer owns and controls. "Permittee" means any person granted a conditional use permit under this chapter. "Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Private residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. “Microbusiness” means a business that engages in at least three (3) of the following commercial cannabis activities: 1. Indoor cultivation of cannabis in an area less than 10,000 square feet on the same licensed premises. 2. Distribution. 3. Manufacturing, limited to packaging and labeling of dried flower. 4. Non-storefront retailer (delivery only). "Storefront Retail cannabis business" or "storefront retailer" or "Cannabis Storefront retail ” means a business that sells and/or delivers cannabis or cannabis products to customers. Storefront retailers may also deliver cannabis or cannabis products to customers. "Sell," sale," and "to sell" include 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 permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing or research laboratory" means a laboratory, facility, or entity in the City that offers or performs tests or research of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 50 PLANNING COMMISSION RESOLUTION NO. 2871 15 C. Conditional use permit required. 1. The City may authorize a total of six (6) conditional use permits for retail cannabis businesses to operate in the City of Palm Desert. No more than one (1) retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants shall be made by a process, and subject to criteria, established by City Council resolution. Conditional use permits for all other commercial cannabis businesses shall be issued in accordance with the zoning and separation requirements established in this section. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit, regulatory permit as required under Chapter 5.101, and a state license for each commercial cannabis business use authorized under the conditional use permit. Unless otherwise stated in this section, the provisions found in Section 25.72.050 Conditional Use Permit, shall apply. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a state license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in state license type, business owner, or operation will require an amendment to the approved conditional use permit. 4. A cannabis delivery service business with a physical address outside the City is not required to obtain a conditional use permit under this chapter but is required to obtain a City business license. 5. This section does not apply to cannabis possession or use, as allowed by state law. Regulations regarding personal use can be found in Chapter 8.38. D. Permitted locations and standards. 1. Commercial cannabis businesses may operate in the City's commercial, industrial, office, 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, with the exception of the City's Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory permit, and state license. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 51 PLANNING COMMISSION RESOLUTION NO. 2871 16 a. Storefront Retailers are conditionally permitted in the Planned Commercial ("PC") -1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No more than six (6) conditional use permits will be issued for retail cannabis businesses. No more than three (3) retail cannabis businesses may locate on any single street, and no more than one (1) retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. b. Testing or research laboratories are conditionally permitted in the Office Professional (OP) district and Service Industrial (SI) district. c. Commercial cultivation businesses are conditionally permitted in the SI district. d. Delivery-only businesses are conditionally permitted in the SI district. e. b. Distribution businesses are conditionally permitted in the SI district in conjunction with a storefront retailer and the distribution activities shall be limited to the physical location that both uses occupy. f. Manufacture businesses are conditionally permitted in the SI district. c. Microbusinesses are conditionally permitted in the SI district and shall be limited to one (1) conditional use permit. 2. Commercial cannabis businesses shall conform to the following separation requirements: a. No conditional use permit shall be issued to a cannabis storefront retailer that is located within 1,500 feet of another approved commercial cannabis business. No more than three (3) cannabis retailers will be permitted to operate on a single street. b. A commercial cannabis business whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City'swithin the Service Industrial zoning district only, shall be separated by 1,500 feet from another approved commercial cannabis business. c. A commercial cannabis business whose main business function is to operate as a testing or research laboratory is not subject to a separation requirement from another approved commercial cannabis business and is exempt from the 1,500 foot separation requirement listed in subsection (D)(2)(a) and (b). d. c. No conditional use permit will be issued for commercial cannabis business located within 1,000 feet of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 52 PLANNING COMMISSION RESOLUTION NO. 2871 17 e. 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 or research laboratory, no conditional use permits shall be issued for commercial and industrial properties abutting public parks or private residence. f. d. 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, daycare center and youth center. 3. Conditional use permit submittal requirements. In addition to the requirements listed in the conditional use permit, all commercial cannabis business applicants shall submit the following information: a. Exterior façade. Renderings of the business façade shall be provided and reviewed as part of the conditional use permit. Building façade plans shall include renderings of the exterior building elevations for all sides of the building. All building façades 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 façade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. b. Energy and water assessments. Commercial cannabis Microbusinesses shall supply 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. E. Grounds for permit denial, suspension, and revocation. Any conditional use permit issued pursuant to the provisions of this section may be denied, suspended, or revoked by the Planning Commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee: 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 failed to maintain a valid state license; DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 53 PLANNING COMMISSION RESOLUTION NO. 2871 18 3. Has failed to comply with any applicable provision of the Palm Desert Municipal Code, including, but not limited to, this chapter, the City's building, zoning, and health and public safety regulations; 4. Has failed to comply with any condition imposed on the conditional use permit; or 5. Has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. 6. No conditional use permit will be issued where commercial cannabis businesses are prohibited by covenants, conditions, and restrictions (CC&Rs) that clearly prohibit such use. For buildings located in any area governed by CC&Rs, the applicant must additionally submit a statement certifying that any applicable CC&Rs do not prohibit the use for which the applicant is seeking approval. F. Personal cultivation. City residents are permitted to cultivate cannabis on private residential property for personal use and in accordance with MAUCRSA, subject to the following standards: 1. Outdoor cultivation. a. Cultivation for personal use is only permitted on private residential property developed with at least one (1) 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, daycare center, or youth center is prohibited. 2. Indoor cultivation. a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 54 PLANNING COMMISSION RESOLUTION NO. 2871 19 required to obtain a building permit from the City's Building and Safety Department. 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 residence. G. Application fee and reimbursement agreement. At the time an applicant submits an application under this section, the applicant shall also supply an application fee in an amount to be determined by resolution by the City Council, an executed reimbursement agreement on a form provided by the City to fully reimburse the City for all costs, expenses, and fees, including, but not limited to, attorney fees and consultant fees, incurred by the City related to the commercial cannabis business, and a deposit in an amount as provided for in the reimbursement agreement terms. H. Prohibited operations. Any commercial cannabis business that does not have: (1) an approved conditional use permit; (2) a regulatory permit required under this code; and (3) a state license is expressly prohibited in all City zones and is hereby declared a public nuisance that may be abated by the City and is subject to all available legal remedies, including, but not limited to, civil injunctions. I. Violations and penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation, if applicable. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the City from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 55 PLANNING COMMISSION RESOLUTION NO. 2871 20 SECTION 5: Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.68.020 is hereby amended as follows: 25.68.020 Design Review Required A. Purpose and applicability. Design review allows for specified projects to be reviewed by the ARC to ensure that design objectives of Palm Desert as specified in the General Plan are achieved. Design review is required, as follows: 1. Prior to permit issuance. No plan, elevation for buildings or structures, or alterations shall be approved and no permit shall be issued for any building, structure, sign, or other development of property or appurtenances or alterations thereto, except in single-family residential districts and developments subject to Objective Design Standards requirements of Chapter 25.42, without review and approval by the ARC. 2. The ARC shall review all plans submitted with applications for moving buildings within or into the City. Photographs shall be included with the application showing all elevations, the structure proposed to be moved, the proposed site, and the buildings adjacent to the proposed site. The ARC shall determine whether the building proposed to be moved will fit harmoniously into the neighborhood wherein it is to be located. It may approve, approve with conditions, or disapprove the issuance of a permit to move such building. 3. The ARC shall review all plans for new two-story residential dwellings and second story additions within the R-2 Zoning District as required by Table 25.10-3 (Residential Zoning District Development Standards) to ensure second stories are compatible with surrounding homes including massing, materials, and considers privacy of adjacent neighbors. The ARC design review shall include the following: 1.a. The mass and bulk of the design should be reasonably compatible with the predominant neighborhood pattern. New construction should not be disproportionately larger than, or out of scale with, the neighborhood pattern in terms of building forms, roof pitches, eave heights, ridge heights, and entry feature heights. 2. b. Placement of windows and doors should have minimal impact to the neighboring property. 3. c. Line of sight analysis shall be provided. 4. d. To mitigate privacy impacts of new two-story homes and additions, tree and/or shrub planting is required. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 56 PLANNING COMMISSION RESOLUTION NO. 2871 21 a. i. Applicability. These requirements shall apply to new two-story homes, two-story additions, and/or new windows on existing two-story homes that increase privacy impacts on neighboring residents. 5. e. Planting plan. Proposals for new two-story homes, two-story additions, and/or new windows on existing two-story homes shall be accompanied by a planting plan which identifies the location, species and canopy diameter of existing and proposed trees or shrubs to meet the requirements. SECTION 6. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.99.020 Land Use Definitions is hereby amended with the following removals and additions to the existing section: Automotive sales new and used (outdoor/indoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automotives can take place outdoors or indoors. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. Automotive sales new and used (indoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automobiles occurs only indoors within an enclosed commercial building. Displays located outside of a building are not included. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. Automotive sales new and used (outdoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automobiles can take place outdoors or indoors. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. DocuSign Envelope ID: B05F19C4-1FCB-46E8-81AB-FAF4CF8006BB 57 58 Page 1 of 5 CITY OF PALM DESERT STAFF REPORT MEETING DATE: June 27, 2024 PREPARED BY: Nick Melloni, AICP, Principal Planner REQUEST: INTRODUCTION OF A ZONING ORDINANCE TEXT AMENDMENT TO AMEND SECTIONS OF TITLE 25 OF THE PALM DESERT MUNICIPAL CODE AND FINDING THE ACTION EXEMPT PER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT RECOMMENDATION: Introduce an Ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT FOR SECTIONS 25.16.030, 25.18.040, 25.28.070, 25.34.120, 25.68.020, AND 25.99.020 OF PALM DESERT MUNICIPAL CODE TITLE 25 AND MAKING A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).” EXECUTIVE SUMMARY: Adopting the recommendation will introduce first reading of a Zoning Ordinance Text Amendment for Title 25 (“Zoning Ordinance”) of the Palm Desert Municipal Code (“PDMC”). The proposed amendments will affect six (6) ordinance sections and are intended to improve clarity, and correct previous omissions, and inconsistencies within the Zoning Ordinance. The ordinance amendment arose from direction from the City Council in early 2024 to amend the Cannabis Ordinance, as well as staff recommended updates for clarity and to restore code sections that were unintentionally removed. These changes include modifications to the following municipal code sections:  PDMC Section 25.16.060 Land Use and Permit Requirements – modifies Table 25.16.-1 to list indoor and outdoor automotive sales as separate land uses, and modifications related to Cannabis Land Use prohibitions.  PDMC Section 25.18.040 Land Use and Permit Requirements – modifies Table 25.18.-1 to modify the reference to Cannabis retail uses and explicitly prohibit Cannabis testing laboratories.  PDMC Section 25.28.070 Freeway Commercial Overlay District – adds Outdoor Automotive Sales as an allowable land uses within the overlay district with the approval of a conditional use permit by Planning Commission and Indoor Automotive Sales as an allowable with approval of an administrative use permit to correct a previous action by the city which inadvertently removed it.  PDMC Section 25.34.120 Commercial Cannabis Business and Personal Use – updates the special use provisions for commercial cannabis businesses to prohibit cannabis testing or research laboratories, commercial cultivation businesses, distribution businesses (except as an accessory use) and manufacturing businesses consistent with direction received from the City Council during the regular meeting on January 11, 2024. 59 City of Palm Desert Case No. ZOA24-0002 – Title 25 Zoning Ordinance Amendments Page 2 of 5 These changes will also add a definition for “Microbusinesses” and modify other definitions.  PDMC Section 25.68.020 Design Review Required – corrects a typo in the headings to clarify the original intent of Ordinance 1383 as it relates to Architectural Review Commission approval of two-story single-family homes.  PDMC Section 25.99.020 Land Use Definitions – removes the definition of automotive sales to establish a new definition of indoor and outdoor automotive sales. PLANNING COMMISSION RECCOMENDATION On June 4, 2024, the Planning Commission adopted Resolution No. 2871 recommending approval of the Zoning Ordinance amendment to the City Council. BACKGROUND: On January 11, 2024, the City Council gave staff direction to amend the commercial cannabis use provisions to prohibit certain cannabis testing or research laboratories, cultivation, distribution, and manufacturing. At this meeting, staff and Council raised several issues and concerns regarding cannabis businesses and potential for negative impacts on pu blic welfare. In April 2024, the Director of Development Services, upon the authority established under PDMC 25.02.040(B) initiated an amendment of Title 25 to improve and clarify the contents of the title. The proposed modifications to the Palm Desert Zoning Ordinance consist of amendments to update allowable land uses, revise errors, and add clarity to certain land use definitions. On May 23, 2024, Planning staff presented these proposed modifications to the Palm Desert City Council feedback. The Council understood the changes and agreed that these were necessary. The Council provided feedback to staff that non -storefront cannabis retail operations should be prohibited in the City. ANALYSIS: The proposed Zoning Ordinance Text Amendments will revise the following PDMC Sections: Section 1 – PDMC 25.16.030 Allowed Land Uses and Permit Requirements The proposed amendments will modify Table 25.16 -1: Use Matrix for Commercial and Industrial Districts to create separate land use categories for indoor and outdoor automotive sales. This change is consistent allowable uses in the Planned Commercial (PC) zoning districts. Additionally, Commercial Cannabis land use allowances will be amended so that the table is consistent with PDMC Section 25.34.120. Section 2 – PDMC 25.16.030 Allowed Land Uses and Permit Requirements Additionally, Commercial Cannabis land use allowances within the One Eleven Development Code will be amended so that the table is consistent with PDMC Section 25.34.120. Section 3 – PDMC 25.28.070 Freeway Commercial Overlay District 60 City of Palm Desert Case No. ZOA24-0002 – Title 25 Zoning Ordinance Amendments Page 3 of 5 The proposed amendments to this section will add Automotive Sales as an allowed use within the Freeway Commercial Overlay Zone (FCOZ). Automotive sales were previously conditionally allowed in the FCOZ pursuant to Ordinance No. 1302 and No. 1303. In November 2016, Ordinance No. 1324 removed automotive sales as an allowable land use in the FCOZ, an omission which is believed to be an error due to the lack of discussion for the change. To ensure consistency with other PC Zoning District, indoor automotive sales will be allowed with the approval of an Administrative Use Permit (AUP) and outdoor automotive uses will be allowed with a Conditional Use Permit (CUP). Allowing automotive sales within the FCOZ is consistent with General Plan Land Use Policy 2.10 as it allows uses that are auto oriented in an area that is clearly auto-oriented due to the proximity of areas with this overlay designation to the Interstate-10 freeway. Section 4 – PDMC 25.34.120 Commercial Cannabis Businesses and Personal Cultivation Per the City Council’s direction to staff at the January 11, 2024 regular meeting, PDMC 25.34.120 will be amended to: A. Prohibit the following types of cannabis businesses:  Cannabis testing or research laboratories  Commercial cultivation businesses  Distribution businesses. o Exception for “accessory” distribution associated with a licensed retail business for on-site sales only through a Conditional Use Permit (“CUP”).  Royal Highness has a distribution license through a CUP amendment in addition to the retail license, to package and relabel “cannabis flower” to buy in bulk and package on-site, reducing costs.  Sales not limited to the Highway 111 location and would be “grandfathered.”  Manufacturing businesses  Non-storefront retailers. The proposed prohibitions will apply to new cannabis businesses. Existing cannabis businesses that fall under these land use categories will become “nonconforming” land uses. One existing cannabis manufacturing business will become nonconforming by the amendment, however, may continue operating under their existing Conditional Use Permit. There are no valid CUPs issued for Cannabis testing or research, cultivation, distribution, or non -store front retailers within the City of Palm Desert. B. Define Microbusiness and allow one (1) conditionally permitted in the SI district.  Cannabis microbusiness means a business that engages in at least three (3) of the following commercial cannabis activities: 1. Indoor cultivation of cannabis in an area less than 10,000 square feet on the same licensed premises. 2. Distribution. 3. Manufacturing, limited to packaging and labeling. 4. Non-storefront retailer (delivery only). [NOTE: Cannabis retail is prohibited in SI] West Coast Cannabis was approved as a microbusiness and has storefront retail and Type 6 (non-volatile) manufacturing and would “grandfathered” under these changes. West Coast 61 City of Palm Desert Case No. ZOA24-0002 – Title 25 Zoning Ordinance Amendments Page 4 of 5 Cannabis Club located at 42650 Melanie will be the only microbusiness allowed to operate within the City. Definitions related to the prohibited cannabis land uses will be removed. Defini tions will also be amended for clarity. New land uses will be added for “Dried flower”, “Non -Storefront retailer”, and “Microbusiness” Section 5 – PDMC 25.68.020 Design Review Required The proposed amendments will correct a typo in the headings to clarify the original intent of Ordinance 1383 as it relates to Architectural Review Commission approval of two -story single- family homes. Section 6 – PDMC 25.99.020 Land Use Definitions The land use definition for automotive sales will be modified to include updated definitions for indoor and outdoor automotive sales for clarity. Public Input: Public Notification Public noticing was conducted for the June 27, 2024, City Council meeting per the requirements of PDMC Section 25.60.060 and Government Code Sections 65090 to 65094. A public hearing notice was published a minimum of 10 days before the hearing date on Friday, June 14, 2024, in The Desert Sun newspaper. Additionally, a copy of the draft Ordinance has been provided to all the cannabis operators within the City. Environmental Assessment/Environment Review: Staff analyzed the ordinance for compliance with the California Environmental Quality Act (CEQA) pursuant to CEQA (Pub. Resources Code, § 21000 et seq.) (CEQA) and the state CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.). The amendments do not meet the definition of a project because the amendments do not have the potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. The proposed amendments are consistent with the General Plan’s goals of ensuring the quality of life for the community. Because the amendment is not a project under CEQA, they are not subject to further environmental review. FINANCIAL IMPACT: No financial impacts are anticipated by this action. Findings of Approval: Findings can be made in support of the project under the City’s Municipal Code. Findings in support of this project are contained in the Draft Ordinance, attached to this staff report. ATTACHMENTS: 1. Draft City Council Ordinance & Exhibit A Zoning Ordinance Amendment 2. Public Hearing Notice 62 City of Palm Desert Case No. ZOA24-0002 – Title 25 Zoning Ordinance Amendments Page 5 of 5 3. Planning Commission Resolution 2871 63 64 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: June 27, 2024 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of June 27, 2024 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 13d: APPROVE AMENDMENT NO. 3 TO CONTRACT NO. C37610 WITH WILLDAN FINANCIAL SERVICES FOR COMPREHENSIVE USER FEE STUDY AND COST ALLOCATION PLAN Q1: How much have we spent (or will spend) on the Willdan fee study and when will it be done? A1: The Willdan Contract C37610 was originally approved May 23, 2019, in an amount not to exceed $35,855. The staff report states that work was to be completed by June 30, 2020, however the project was paused due to covid. In 2022, Willdan reached out to staff to resurrect the project (staff that was assigned to the study had retired) and on June 23, 2022, Amendment no. 1 was approved extending the term for one year (06/30/2023) in addition to $15,000 for change orders anticipating changes to the structure. On June 22, 2023, the term was extended another year (06/30/2024) due to the extensive work being done to clean up the complicated fee structure by the new Development Services team. The most recent invoice indicates that $29,990, out of the original $35,855, has been paid to date. Amendment No. 3 is on tomorrow’s agenda and extends the term an additional 6 months through December 31, 2024. Q1: Please provide copies of the first two amendments. A1: Attached are the original agreement and two amendments. ITEM 15g: INTRODUCTION OF A ZONING ORDINANCE TEXT AMENDMENT TO AMEND SECTIONS OF TITLE 25 OF THE PALM DESERT MUNICIPAL CODE AND FINDING THE ACTION EXEMPT PER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Staff recommends the City Council approve a modified version of the draft ordinance for Zoning Ordinance Amendment (Case No. ZOA24-0002), removing all references to “Cannabis Microbusiness” land uses. This follows the closure of West Coast Cannabis Club on June 26, 2024. Acceptance of this recommendation would pass the modified ordinance to a second reading and require Planning Commission consideration on July 16, 2024. Please see the attached memo and revised ordinance for more details. 65 CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT CITY COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Nick Melloni, AICP Principal Planner Date: June 26, 2024 Case No(s): ZOA24-0002 Subject: Item 15.g - Zoning Ordinance Amendment (ZOA) 24-0002 – Proposed Ordinance Modification Staff is recommending the City Council approve a modified version of the draft ordinance that would remove all references and allowances for “Cannabis Microbusiness” land uses from the proposed Zoning Ordinance Amendment (Case No. ZOA24-0002). This land use was included to allow an existing non-conforming Cannabis Microbusiness, West Coast Cannabis Club located at 42-650 Melanie Place (cannabis microbusiness), a path forward to become a legal and conforming land use. On June 25, 2024, the business owner notified City that the business would officially cease operating on June 26, 2024, at 5:00 PM and would not be renewing their State Cannabis License. An email sent by City staff to the business owner, Kenneth Churchill, documenting the discussion of this closure is included as Attachment 2 of this memorandum. Due to the closure of this microbusiness, staff recommends all references to the conditional use (microbusiness) be removed from the proposed Zoning Ordinance. Staff will be scheduling the revocation of the conditional use permit for Planning Commission consideration at their August 6, 2024, meeting. References to microbusiness use are found in Section 1, and Section 4 of the draft ordinance. Staff has prepared a revised ordinance for City Council consideration; included as Attachment 1 of this memorandum. Acceptance of staff’s recommendation would pass the modified ordinance to second reading. In accordance with California Government Code Section 65857, the modified ordinance will require the Planning Commission to consider the modified ordinance for recommendation prior to Second Reading by the City Council and would be scheduled for the July 16, 2024, Planning commission agenda. Attachments 1. Draft Modified Ordinance 2. June 25, 2024 City staff email to West Coast Cannabis Club regarding closure 66 ATTACHMENT 1 - REVISED ORDINANCE ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA APPROVING A ZONING ORDINANCE AMENDMENT FOR SECTIONS 25.16.030, 25.18.040, 25.28.070, 25.34.120, 25.68.020, AND 25.99.020 OF PALM DESERT MUNICIPAL CODE TITLE 25 AND MAKING A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).” CASE NO. ZOA 24-0002 WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any and all adopted City of Palm Desert (“City”) zoning laws, ordinances, rules and regulations; and WHEREAS, the Zoning Ordinance Amendment (ZOA) is initiated by the Palm Desert Director of Community Development and modifies sections of the Palm Desert Municipal Code (PDMC) Title 25 (Zoning) to correct typos, to change and update land uses and definitions; and WHEREAS, the City has complied with the requirements of the Local Planning and Zoning Law (Government Code section 65100 et seq.), and the City’s applicable ordinances and resolutions with respect to approval of amendments to Title 25 of the Palm Desert Municipal Code (“Zoning Ordinance”); and WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), and the City of Palm Desert’s (“City’s”) Local CEQA Guidelines, the City is the lead agency for the Project; and WHEREAS, the Project has complied with the requirements of the "City of Palm Desert Procedure for Implementation of CEQA” Resolution No. 2019-41, in that the Director of Development Services has determined that the Project will not have a foreseeable significant impact on the environment and that the Project is eligible for an exemption exempt Section 15061(b)(3) General Rule of the CEQA Guidelines; therefore, no further environmental review is necessary at this time; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on June 4, 2024, hold a duly noticed public hearing to consider the project and unanimously voted to adopt Planning Commission Resolution No. 28 71 recommending the City Council approve the ordinance amendment as presented; and 67 ORDINANCE 2 WHEREAS, the City Council of the City of Palm Desert, California, did on June 27, 2024, hold a duly noticed public hearing to consider the recommendation of Planning Commission Resolution No. 2871 and the above noted project request; and WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the City Council did find the following facts and reasons, which are outlined in the staff report, exist to justify approval of said request: NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA DOES ORDAIN AS FOLLOWS: SECTION 1. Findings. The City Council hereby finds that: A. The City of Palm Desert, California (“City”), a municipal corporation duly organized under the constitution and laws of the State of California; and B. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. SECTION 2. Amendment. The City Council of the City of Palm Desert does hereby approve and adopt the PDMC amendments to Title 25 as shown in “Exhibit A”, which is attached hereto and incorporated herewith. SECTION 3. CEQA. The City Council finds that adoption of this ordinance is not a “project,” as defined in the California Environmental Quality Act (CEQA) because it does not have a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and concerns general policy and procedures. SECTION 4. 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 irrespec tive of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 5. Project Approval. The City Council approval of Case No. ZOA24-0002 as depicted in Exhibit A, attached hereto; and SECTION 6. 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 68 ORDINANCE 3 full force and effective thirty (30) days after its adoption.to the Commission shall attest and certify to the passage and adoption thereof. ADOPTED ON June 27, 2024. KARINA QUINTANILLA MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the City Council of the City of Palm Desert on June 27, 2024, and adopted at a regular meeting of the City Council held on July ____, 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _______________. ANTHONY J. MEJIA CITY CLERK 69 ORDINANCE 4 “EXHIBIT A” ZONING ORDINANCE AMENDMENT SECTION 1. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.16.030 is hereby amended as follows: 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 title. 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 o f 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). Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.B / 25.42 Dwelling, duplex C C C C C C 25.16.040.B Dwelling, multifamily C C C C C C 25.16.040.B / 25.42 Dwelling, single-family C C C N C C 25.16.040.B Group home C C N N C C 25.16.040.B / 25.42 Single-room occupancies N N N N N C Homeless shelter N N N N N P Recreation, Resource Preservation, Open Space, and Public Assembly Uses Amusement facility, indoors N N C C C N Amusement facility, outdoors N N N C C N Community facility N N N N N P 70 ORDINANCE 5 Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Day care center N A A A A N Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility, outdoor N N N P P N Institution, educational C C C N N C Institution, general C N C N N C Institution, religious C N C N N C Open space (developed or natural) N P P N P N Recreation facility, commercial N N P P P N Recreation facility, private N N N P P N Theater/auditorium N N P P N N Utility, Transportation, Public Facility, and Communication Uses Commercial communication tower C C C C C C 25.16.040.C Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility (utility or service) N N N N N P Utility facility N N C N N P Retail, Service, and Office Uses Accessory massage establishment P N P P P N 25.34.160 Adult entertainment N N N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P Cannabis Storefront retail N C C C C N 25.34.120 Cannabis testing and research laboratory N N N N N N 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P P P N N Grocery store N P P P N N 25.16.040.F Health club, gyms or studios N A P P P A Hotel N A A A P N 25.34.070 Independent stand-alone massage N N P P N N 25.34.160 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 P N N Medical, office P P P P N N Medical, hospital N N N N N C Medical, laboratory P N N N N P Medical office, accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office, professional P N P P P P Office, local government P N N N N P Office, travel agency P P P P P N Outdoor sales N N A A A A 71 ORDINANCE 6 Commercial/Industrial District (P=Permitted; A=Administrative Use Permit; C=Conditional Use Permit; N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Special Use Provisions Personal services N P P P P N Restaurant A A A A P A 25.16.040.E / H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N Time-share project N N N C C N Veterinary clinics/animal hospitals A N A A N A Pet boarding N A A A N A Automobile and Vehicle Uses Automotive rental agency N N N N P P Automotive gasoline station N N C C N C 25.34.090 Automotive service facility N N C C N P 25.34.090 Automotive sales new and used (indoor) N N N N N A Automotive sales new and used (outdoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility N N N N N P 25.16.040.I Industrial, Manufacturing, and Processing Uses Cannabis cultivation N N N N N N 25.34.120 Cannabis delivery N N N N N N 25.34.120 Cannabis distribution N N N N N N 25.34.120 Cannabis manufacturing N N N N N N 25.34.120 Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N N N N P Temporary Uses See Section 25.34.080 1 The establishment may be permitted with an administrative use permit but may be elevated to a conditional use permit at the discretion of the ZA based on: parking, traffic, or other impacts. SECTION 2. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code section 25.18.040 is hereby amended as follows: 25.18.040 Land Use and Permit Requirements 72 ORDINANCE 7 Table 25.18-1 (Use Matrix for Downtown Districts) identifies allowed uses and corresponding permit requirements for the downtown 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 that use type are located within this title. 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). TABLE 25.18-1. USE MATRIX FOR DOWNTOWN DISTRICTS P = use permitted by right A = use requires administrative use permit C = use requires approval of conditional use permit N = use not permitted Land Use Zone Special Use Provisions D D-O DE DE-O Residential Uses Accessory dwelling unit P P P P 25.34.030 Assisted Living N N N C Condominium C 1 C 1 C C 25.16.040.B Dwelling, duplex C 1 C 1 C P 25.16.040.B Dwelling, multifamily C 1 C 1 C P 25.16.040.B Dwelling, single-family C 1 C 1 C N 25.16.040.B Group home C 1 C 1 C N 25.16.040.B Junior accessory dwelling unit P P P P 25.34.030 Home-based business P4 P4 P4 P4 25.34.020 Agriculture-Related Uses Garden, private C 1 C 1 N P Greenhouse, private N N C P Horticulture, private N N C P Recreation, Resources Preservation, Open Space, and Public Assembly Uses Club, private N N N C Day care center C 1 C 1 N N Day care, large family N N N P 25.10.040.F Day care, small family N N N P Institution, educational N N C C Institution, general N N C C 73 ORDINANCE 8 Land Use Zone Special Use Provisions D D-O DE DE-O Institution, religious N N C C Mechanical or electronic games, ≤ 4 P 1 P 1 P N Mechanical or electronic games, ≥ 5 C 1, 2 C 1, 2 C N Recreational facility, incidental N N N C 25.10.040.H Recreation facility, private N N N P Recreation facility, public N N N C Retail, Service, and Office Uses Accessory massage establishments P P P N 25.34.160 Ancillary commercial N N A N 25.16.040.E Animal Clinic C1,6 C1,6 C1,6 N 25.34.210 Art gallery P P P A Art studio P 1 P 1 A A Book and card shops P P N N Bed and breakfast N N C C Cannabis Storefront retail C N C N 25.34.120 Cannabis testing and research laboratory N N N N 25.34.120 Clothing and apparel shops P P P N Convention and visitors bureau P 1 P 1 C N Drugstore P 1 P 1 N N Financial institution P 1 P 1 C N Furniture stores and home furnishings P P P N Gift and accessories boutiques (including small antiques) P P P N Grocery store < 35,000 SF C 1 C 1 N N Health club, gyms or studios C 1 , 2 C 1 , 2 C 2 N Hotel C C C C Independent stand-alone massage establishments P 1 P 1 C N 25.34.160 Jewelry shops P P P N Liquor store P 1 P 1 N N Liquor, beverage and food items shop P 1 P 1 N N Luggage shops P P P N Medical, clinic P 1 P 1 P N Medical, office P 1 P 1 P A5 Medical, hospital P 1 P 1 C C Medical, laboratory N N P N Mortuary C 1 C 1 N N Office, professional P 3 P 3 P P3 25.28.040.C 74 ORDINANCE 9 Land Use Zone Special Use Provisions D D-O DE DE-O Office, local government P 1 P 1 P N Office, neighborhood government N N N C Office, travel agency P 3 P 3 P N 25.10.040.K Outdoor sales A 1 A 1 A N Personal services P P P N Restaurant C 2 C 2 C 1 N 25.16.040.H Retail P P P N Retail, bulky items P 1 P 1 C N Retail, Golf carts and neighborhood electric vehicles (NEV) C N C N 25.34.190 Spa P P P C Sundries shops (general merchandise) P P P N Time-share project C 1 C 1 N N Utility, Transportation, Public Facility, and Communication Uses Fire station C C C C Commercial communication tower C C C Commercial parking lot P P C C 25.10.040.I Office parking lot N N N C 25.10.040.L Public service facility N N N C Utility facility N N N C Utility installation C C N N Automobile and Vehicle Uses Automotive rental agency P P C N Automotive service station C C N N Temporary Uses See Section 25.34.080 1 Uses prohibited along El Paseo facing ground floor frontages. 2 The establishment may be permitted with an administrative use permit but may be elevated to a conditional use permit at the discretion of the ZA based on parking, traffic, or other impacts. 3 Office professional uses along El Paseo facing ground floor frontages within the El Paseo Overlay District may be allowed subject to a Conditional Use Permit per Section 25.28.040 El Paseo Overlay District. 4 Home Occupation Uses are permitted in residential dwelling units in approved residential and mixed-use developments. 75 ORDINANCE 10 5. Medical Offices existing and operating with an appropriate City business license prior to 2023 are permitted by right to continue operating without requiring an Administrative Use Permit. 6. Use only permitted on properties with frontage along Highway 111. SECTION 3. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.28.070 is hereby amended as follows: 25.28.070 Freeway Commercial Overlay Zone A. Purpose and applicability. The purpose of the Freeway Commercial Overlay Zone (FCOZ) district is to provide optional standards and incentives for the development of a variety of commercial uses. Whenever the FCOZ has been added to a base zone, the owner/applicant may choose whether to use the optional FCOZ standards or the standards of the base zone. In order to obtain approval of uses only permitted in the FCOZ, the project must utilize FCOZ standards. B. Conditional uses. Uses permitted by approved conditional use permit shall be as follows: 1. Restaurants, general, including drive-through restaurants. 2. Automobile service stations without regard to the required separation distance provisions per Section 25.34.090 (Automotive Service Stations). 3. Convenience stores. 4. Car washes. 5. Combinations of 2 or more of the above uses. 6. Hotel. 7. Commercial recreation and amusement establishments. 8. Personal storage. 9. Outdoor recreational vehicle and boat storage. 10. Automotive Sales New and Uses (Outdoor). Automotive Sales New and Used (Indoor) may be permitted by administrative use permit in accordance with Chapter 25.64. 76 ORDINANCE 11 C. Development standards. Projects proposed under this chapter shall be master planned and the master plan shall be approved by the Commission prior to any construction activity. The master plan approval is subject to the following: 1. Development of individual projects within the approved master plan shall be processed through the precise plan process. 2. Property to be master planned shall be at least 5 acres in size and shall have frontage on a designated arterial street. 3. Drive-up lanes and window facilities shall be designed in a manner that they are not visible from an arterial street. 4. Development standards shall generally be flexible to ensure efficient site planning and to foster the creation of attractive developments. 5. Automobile service stations shall comply with the requirements of Section 25.34.090 (Automotive Service Stations). D. Required on-site parking. The required number of parking spaces for a combined development shall be cumulative for all proposed uses. The Commission may reduce the required parking where it is clearly demonstrated that a shared use will occur (i.e., a restaurant which serves a hotel), or with a showing of good cause, the Commission may increase the number of parking spaces required. E. Setbacks. Setbacks shall be as prescribed in the base zone and/or automobile service stations pursuant to Section 25.34.090 (Automotive Service Stations). F. Landscaping. All master planned projects approved through the FCOZ process shall provide a minimum of at least 30 percent landscaped open space, of which at least half of the common usable public space can include a picnic area, a dog park, or a kids land, as well as landscaped setback areas. With a showing of good cause, the Commission may decrease the minimum landscaped open space requirement. (Ord. 1324 § 7, 2017; Ord. 1303 § 5, 2016; Ord. 1302 § 4, 2016; Ord. 1259 § 1, 2013) SECTION 4: Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.34.120 is hereby amended as follows: 25.34.120. Cannabis Business and Personal Cultivation. A. Purpose and intent. It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, retail sale and personal cultivation, of medicinal cannabis and non -medicinal adult- use 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 ("MMP"), 77 ORDINANCE 12 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. 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. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under state law. B. Definitions. For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a conditional use permit under this chapter. "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 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. For the purpose of this division, "cannabis" does no t mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "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 business which engages in the medicinal or adult-use commercial cannabis activity authorized by this Chapter. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Daycare center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers. 78 ORDINANCE 13 "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 permitted or licensed by the City and/or State of California. “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. "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 California Business and Professions Code. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. “Non-Storefront retailer” is a business that is closed to the public and provides cannabis or cannabis product to customers solely by means of a delivery service which the retailer owns and controls. "Permittee" means any person granted a conditional use permit under this chapter. "Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Private residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. "Storefront Retail cannabis business" or "storefront retailer" or "Cannabis Storefront retail ” means a business that sells cannabis or cannabis products to customers. Storefront retailers may also deliver cannabis or cannabis products to customers. "Sell," sale," and "to sell" include 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 79 ORDINANCE 14 soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video a rcades, or similar amusement park facilities. C. Conditional use permit required. 1. The City may authorize a total of 6 conditional use permits for retail cannabis businesses to operate in the City of Palm Desert. No more than 1 retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants shall be made by a process, and subject to criteria, established by City Council resolution. Conditional use permits for all other commercial cannabis businesses shall be issued in accordance with the zoning and separation requirements established in this section. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applic ant must obtain and maintain a valid conditional use permit, regulatory permit as required under Chapter 5.101, and a state license for each commercial cannabis business use authorized under the conditional use permit. Unless otherwise stated in this secti on, the provisions found in Section 25.72.050 Conditional Use Permit, shall apply. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a state license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in state license type, business owner, or operation will require an amendment to the approved conditional use permit. 4. A cannabis delivery service business with a physical address outside the City is not required to obtain a conditional use permit under this chapter, but is required to obtain a City business license. 80 ORDINANCE 15 5. This section does not apply to cannabis possession or use, as allowed by state law. Regulations regarding personal use can be found in Chapter 8.38. D. Permitted locations and standards. 1. Commercial cannabis businesses may operate in the City's commercial, industrial, office, 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, with the exception of the City's Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory permit, and state license. a. Storefront Retailers are conditionally permitted in the Planned Commercial ("PC") -1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No more than 6 conditional use permits will be issued for retail cannabis businesses. No more than 3 retail cannabis businesses may locate on any single street, and no more than 1 retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. b. Distribution businesses are conditionally permitted in conjunction with a storefront retailer and the distribution activities shall be limited to the physical location that both uses occupy. 2. Commercial cannabis businesses shall conform to the following separation requirements: a. No conditional use permit shall be issued to a storefront retailer that is located within 1,500 feet of another approved commercial cannabis business. No more than 3 cannabis retailers will be permitted to operate on a single street. b. A cannabis business within the Service Industrial zoning district shall be separated by 1,500 feet from another approved cannabis business. c. No conditional use permit will be issued for commercial cannabis business located within 1,000 feet of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued. d. 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, daycare center and youth center. 81 ORDINANCE 16 3. Conditional use permit submittal requirements. In addition to the requirements listed in the conditional use permit, all commercial cannabis business applicants shall submit the following information: a. Exterior façade. Renderings of the business façade shall be provided and reviewed as part of the conditional use permit. Building façade plans shall include renderings of the exterior building elevations for all sides of the building. All building façades 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 façade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. E. Grounds for permit denial, suspension, and revocation. Any conditional use permit issued pursuant to the provisions of this section may be denied, suspended, or revoked by the Planning Commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee: 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 failed to maintain a valid state license; 3. Has failed to comply with any applicable provision of the Palm Desert Municipal Code, including, but not limited to, this chapter, the City's building, zoning, and health and public safety regulations; 4. Has failed to comply with any condition imposed on the conditional use permit; or 5. Has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. 6. No conditional use permit will be issued where commercial cannabis businesses are prohibited by covenants, conditions, and restrictions (CC&Rs) that clearly prohibit such use. For buildings located in any area governed by CC&Rs, the applicant must additionally submit a statement certifying that any applicable CC&Rs do not prohibit the use for which the applicant is seeking approval. 82 ORDINANCE 17 F. Personal cultivation. City residents are permitted to cultivate cannabis on private residential property for personal use and in accordance with MAUCRSA, subject to the following standards: 1. Outdoor cultivation. a. Cultivation for personal use is only permitted on private residential property developed with at least 1 residential dwelling unit. No more than 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 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, daycare center, or youth center is prohibited. 2. 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 Building and Safety Department. 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 residence. G. Application fee and reimbursement agreement. At the time an applicant submits an application under this section, the applicant shall also supply an application fee in an amount to be determined by resolution by the City Council, an executed reimbursement agreement on a form provided by the City to fully reimburse the City for all costs, expenses, and fees, including, but not limited to, attorney fees and consultant fees, incurred by the City related to the commercial cannabis business, and a deposit in an amount as provided for in the reimbursement agreement terms. H. Prohibited operations. Any commercial cannabis business that does not have: (1) an approved conditional use permit; (2) a regulatory permit required under this code; and (3) a state license is expressly prohibited in all City zones and is hereby declared a public 83 ORDINANCE 18 nuisance that may be abated by the City and is subject to all available legal remedies, including, but not limited to, civil injunctions. I. Violations and penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation, if applicable. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the City from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. SECTION 5: Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.68.020 is hereby amended as follows: 25.68.020 Design Review Required A. Purpose and applicability. Design review allows for specified projects to be reviewed by the ARC to ensure that design objectives of Palm Desert as specified in the General Plan are achieved. Design review is required, as follows: 1. Prior to permit issuance. No plan, elevation for buildings or structures, or alterations shall be approved and no permit shall be issued for any building, structure, sign, or other development of property or appurtenances or alterations thereto, except in single-family residential districts and developments subject to Objective Design Standards requirements of Chapter 25.42, without review and approval by the ARC. 2. The ARC shall review all plans submitted with applications for moving buildings within or into the City. Photographs shall be included with the application showing all elevations, the structure proposed to be moved, the proposed site, and the buil dings adjacent to the proposed site. The ARC shall determine whether the building proposed to be moved will fit harmoniously into the neighborhood wherein it is to be 84 ORDINANCE 19 located. It may approve, approve with conditions, or disapprove the issuance of a permit to move such building. 3. The ARC shall review all plans for new two-story residential dwellings and second story additions within the R-2 Zoning District as required by Table 25.10-3 (Residential Zoning District Development Standards) to ensure second stories are compatible with surrounding homes including massing, materials, and considers privacy of adjacent neighbors. The ARC design review shall include the following: a. The mass and bulk of the design should be reasonably compatible with the predominant neighborhood pattern. New construction should not be disproportionately larger than, or out of scale with, the neighborhood pattern in terms of building forms, roof pitches, eave heights, ridge heights, and entry feature heights. b. Placement of windows and doors should have minimal impact to the neighboring property. c. Line of sight analysis shall be provided. d. To mitigate privacy impacts of new two-story homes and additions, tree and/or shrub planting is required. i. Applicability. These requirements shall apply to new two-story homes, two- story additions, and/or new windows on existing two-story homes that increase privacy impacts on neighboring residents. e. Planting plan. Proposals for new two-story homes, two-story additions, and/or new windows on existing two-story homes shall be accompanied by a planting plan which identifies the location, species and canopy diameter of existing and proposed trees or shrubs to meet the requirements. SECTION 6. Amendment to Palm Desert Municipal Code. Palm Desert Municipal Code Section 25.99.020 Land Use Definitions is hereby amended with the following removals and additions to the existing section: Automotive sales new and used (outdoor/indoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automotives can take place outdoors or indoors. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. 85 ORDINANCE 20 Automotive sales new and used (indoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automoti ves occurs only indoors within an enclosed commercial building. Displays located outside of a building are not included. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. Automotive sales new and used (outdoor). A commercial establishment selling and/or renting new and/or used automobiles, boats, vans, campers, trucks, mobile homes, recreational and utility trailers, motorized farm equipment, motorcycles, mopeds, snowmobile and jet skis. The sales of all automotives can take place outdoors or indoors. These uses include parts for sale and repair shops only when part of a dealership selling new vehicles on the same site. These uses do not include service stations, which are separately defined. 86 1 Nick Melloni From:Lorena Ritchey Sent:Tuesday, June 25, 2024 4:18 PM To:Nick Melloni; Carlos Flores Subject:FW: CCRP23-0023, Palm Desert Melanie Place (WCCC), 42650 Melanie Place - Closing Cannabis Business Operations Importance:High FYI Lorena Ritchey, CCEO Management Analyst City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 lritchey@palmdesert.gov | 760.776.6477 | www.palmdesert.gov From: Lorena Ritchey Sent: Tuesday, June 25, 2024 4:06 PM To: Kenneth Churchill <> Cc: Richard Cannone <rcannone@palmdesert.gov>; James Bounds <jbounds@palmdesert.gov> Subject: CCRP23-0023, Palm Desert Melanie Place (WCCC), 42650 Melanie Place - Closing Cannabis Business Operations Importance: High Hi Ken, This is to recap our phone conversa<on this morning that you are officially closing your business, Palm Desert Melanie Place. The doors will officially close tomorrow, June 26, 2024. · Did not renew the State Cannabis License no. C12-0000119-LIC which expires June 27, 2024. o Microbusiness license: retail, cul<va<on, manufacturing, and distribu<on. · You will do your best to pay all outstanding debts, specifically any money due to the City Finance Department cannabis taxes. The business opera<on finance revenues have not been produc<ve. And the State taxes that must be paid are enormous and increasing. It’s challenging to make a profit when taxes must be paid to everyone. · Will be keeping the Cathedral City and Indio dispensary stores. · Will be liquida<ng the equipment, but it will take some <me. · The building owner passed away and the property is in a trust. The building was recently appraised at $6 million but will be challenging for anyone to pay that amount of money. The building will probably be vacant for a long <me. I’ve taken the liberty of including the Director of Development Services, Richard Cannone, and Finance Supervisor, James Bounds for their informa<on. Regarding the outstanding debt due to the City, please work with the Finance team. Please keep us apprised if something occurs at the loca<on that the City should be aware of while you vacate all property equipment inside the building. Attachment 2 87 2 It was a pleasure to work with you and your team! Thank you and all the best with your other two dispensary businesses. cc: File 88 Page 1 of 3 CITY OF PALM DESERT PLANNING COMMISSION STAFF REPORT MEETING DATE: July 16, 2024 PREPARED BY: Carlos Flores, AICP, Principal Planner REQUEST: CONSIDER MODIFICATION OF CONDITIONAL USE PERMIT 17-0033 FOR THE OPERATION OF A CANNABIS BUSINESS AT 73818 DINAH SHORE DRIVE RECOMMENDATION: Adopt Resolution No. 2870 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, MODIFYING CONDITIONAL USE PERMIT NO. 17-0033 WHICH ALLOWS THE OPERATION OF A CANNABIS BUSINESS ON THE PROPERTY LOCATED AT 73818 DINAH SHORE DRIVE” BACKGROUND/ANALYSIS: On July 17, 2018, the City of Palm Desert Planning Commission (Commission) adopted Planning Commission Resolution No. 2730 (Reso 2730), which approved Conditional Use Permit 17-0033 (CUP 17-0033) to allow for the operation of a Cannabis Business located at 73818 Dinah Shore Drive (APN: 694080007), conditioned upon a total of 25 conditions of approva l that needed to be adhered to. The approval also approved both a use and floor plan as presented on the application’s statement of operations and site plan. On May 21, 2024, the Commission, at a duly noticed public hearing, considered a revocation of CUP17-0033 for Thinc Cubed (Applicant) based upon findings presented by City staff. Attachment 2 includes the staff report for this item which details background information, a timeline, and analysis on the consideration for revocation. At the meeting the Commission approved, on a 3 to 1 vote, to continue the item to a date uncertain to provide the applicant more time to explore modifications to the regulatory permit in lieu of complete revocation. Project Description: Following the May 21 Commission meeting, City staff had multiple conversations with the Applicant’s representative to explore options to modify the CUP. The Applicant proposed a revised operation and floor plan that would modify the manufacturing component of the business to only allow for non-volatile solvent manufacturing or mechanical extraction. Volatile solvent manufacturing would be prohibited at this location. The Applicant would be responsible for receiving a Type 6 (non-volatile solvent manufacturing or mechanical extraction) Manufacturing license from the Department of Cannabis Control. Non- volatile solvent manufacturing or mechanical extraction allows for: - The use of non-volatile solvents for extraction or post extraction processing - Using mechanical methods for extractions 89 City of Palm Desert – Planning Commission CUP17-0033 Modification Page 2 of 3 - Making cannabis products through infusion - Packaging and labeling cannabis products Non-volatile solvents are chemicals that do not produce a flammable gas or vapor, which include, but are not limited to: ethanol, carbon dioxide, cooking oils , and butters. Mechanical extraction uses pressure, heat or cold to extract cannabinoids instead of using chemicals. The Applicant would be responsible for complying with all conditions of approval as outlined the draft Resolution (Attachment 1) and would have to establish the operations within one (1) year from the date of an approval. ANALYSIS Pursuant to PDMC 25.72.050(J), the Planning Commission is the designated decision -making body authorized to modify, suspend, or revoke a conditional use permit. The May 21, 2024 staff report presented findings of fact supporting revocation. Following this meeting, the Applicant proposed a modification to the CUP to only allow for non-volatile solvent manufacturing of and provided City staff a timeline of getting the necessary construction permits and licenses to operate the business in compliance with the CUP. City staff is in full support of the request to modify their CUP. Environment Assessment/Environmental Review: The City of Palm Desert (“City”), in its capacity as the Lead Agency for this project and pursuant to the California Environmental Quality Act (“CEQA”), finds and determines that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), per State CEQA Guidelines, Section 15301 – Existing Facilities. This exemption covers actions pertaining to interior alterations involving tenant improvements. The proposed modification will require modification to the interior of an existing building. Additionally, the proposed action does not fall under any of the exceptions identified by CEQA Guidelines Section 15300.2. • Cumulative Impact – There are no other successive projects in the surrounding area due to the separation requirements from other cannabis businesses in accordance with PDMC 25.34.120. • Significant Effect – There is no substantial evidence that the proposed modification will have a significant effect on the environment and there are no unusual circumstances applicable to the project. • Scenic Highways – The proposed modification will not have an impact on a designated scenic highway as there are no scenic highways in the immediate vicinity. • Hazardous Waste Sites – The modification is not located on an identified hazardous waste site. • Historical Resources – There are no identified historic resources within the vicinity of the project site. Public Input: 90 City of Palm Desert – Planning Commission CUP17-0033 Modification Page 3 of 3 Public Notification Public noticing was conducted for this Planning Commission meeting per the requirements of PDMC Section 25.60.060 and Government Code Sections 65090 to 65094. A public hearing notice was published a minimum of ten (10) days before the hearing date on Frida y, July 5, 2024, in The Desert Sun newspaper. Notices were mailed to all property owners within 300 feet of the project site. Findings of Approval: Findings of Approval for this report can be found in the draft Resolution attached to this report. LEGAL REVIEW: This staff report was reviewed by the City Attorney’s office. ATTACHMENTS: 1. Draft Resolution No. 2870 2. May 21 CUP17-0033 Revocation Staff report 3. May 21, 2024 PC Minutes 4. Floor Plan 5. Public Hearing Notice 91 92 PLANNING COMMISSION RESOLUTION NO. 2870 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, MODIFYING CONDITIONAL USE PERMIT NO. 17- 0033 WHICH ALLOW S THE OPERATION OF A CANNABIS BUSINESS ON THE PROPERTY LOCATED AT 73818 DINAH SHORE DRIVE CASE NO. CUP17-0033 MODIFICATION WHEREAS, on November 6, 2018, the City of Palm Desert Planning Commission adopted Resolution No. 2730, approving a Conditional Use Permit (“CUP”) to operate a Cannabis business with twenty-five (25) conditions of approval at 73818 Dinah Shore Drive, Palm Desert, California (“Property”); and WHEREAS, on January 24, 2023, the California Department of Cannabis Control (“DCC”) issued a Commercial Distributor license (License No. Number C11-0001786-LIC) to Thinc Cubed at the subject Property; and WHEREAS, on March 8, 2023, the California DCC issued a Manufacturer Type 7 license (License No. CDPH-10004878) to Thinc Cubed at the subject Property; and WHERAS, pursuant to Palm Desert Municipal Code (“PDMC) § 25.72.050(J) the Palm Desert Planning Commission is authorized to make findings to modify, discontinue, suspend, or revoke any Conditional Use Permit issued pursuant to Title 25 of the PDMC; and WHEREAS, on May 8, 2024, written notice of a hearing to consider revocation of CUP17-0033 scheduled for May 21, 2024, at 6:00 p.m. with the Planning Commission in the Council Chamber located at 73510 Fred Waring Drive, Palm Desert, California was provided to Thinc Cubed; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on May 21, 2024, hold a duly noticed public hearing to consider a revocation of CUP17-0033 and approved a continuance of the item; The Planning Commission directed “Thinc Cubed” (“Applicant”) and City staff to explore modifications to the CUP in lieu of complete revocation; and WHEREAS, the Applicant submitted a modified floor plan and statement of operations to modify their manufacturing license from a Type 7 Manufacturing License (volatile solvent manufacturing) to a Type 6 Manufacturing License (non-volatile solvent manufacturing or mechanical extraction); and WHEREAS, the Planning Commission finds and determines that this project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), per State CEQA Guidelines, Section 15321 – Enforcement Actions by Regulatory Agencies; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on July 16, 2024, hold a duly noticed public hearing to consider the above-noted request; and 93 PLANNING COMMISSION RESOLUTION NO. 2870 2 WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the Planning Commission did find the following facts and reasons, which are outlined in the staff report, exist to justify modification of the Conditional Use Permit. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: SECTION 1. Recitals. The Planning Commission hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Findings. Findings for approval can be found under Planning Commission Resolution 2730, approved and adopted on July 17, 2018. The modification proposed and approved does not change the circumstances for the findings made for approval. SECTION 4. Environmental Review. The proposal is categorically exempt from further environmental review and the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15301 (Class 1 – Existing Facilities). SECTION 5. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s office at 73510 Fred Waring Drive, Palm Desert, CA 92260. Richard D. Cannone, AICP, the Secretary to the Palm Desert Planning Commission, is the custodian of the record of proceedings. SECTION 6. Execution of Resolution. The Chairperson of the Planning Commission signs this Resolution, and the Secretary to the Commission shall attest and certify the passage and adoption thereof. SECTION 7. Project Recommendations. The Planning Commission hereby approves the proposed modification to CUP17-0033, subject to the findings and Conditions of Approval attached herein as “Exhibit A”. ADOPTED ON July 16, 2024. JOSEPH PRADETTO CHAIRPERSON ATTEST: RICHARD D. CANNONE, AICP SECRETARY 94 PLANNING COMMISSION RESOLUTION NO. 2870 3 I, Richard D. Cannone. AICP, Secretary of the City of Palm Desert, hereby certify that Resolution No. is a full, true, and correct copy, and was duly adopted at a special meeting of the Planning Commission of the City of Palm Desert on July 16, 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on July__, 2024. RICHARD D. CANNONE, AICP SECRETARY 95 PLANNING COMMISSION RESOLUTION NO. 2870 4 EXHIBIT A CONDITIONS OF APPROVAL CASE NO. CUP 17-0033 MODIFICATION DEPARTMENT OF DEVELOPMENT SERVICES: 1. All conditions of Planning Commission Resolution 2730 shall be nullified and modified by the conditions of this resolution. 2. The business shall operate as a commercial cannabis business, including cannabis cultivation and manufacturing. Manufacturing within the business shall be limited to non-volatile solvent manufacturing or mechanical extraction, consistent with the regulations on Type 6 Manufacturing license types from the Department of Cannabis Control (DCC) 3. The development of the property shall conform substantially with exhibits on file with the Department of Development Services, as modified by the following conditions. 4. The Applicant agrees that in the event of any administrative, legal or equitable action instituted by a third party challenging the validity of any of the procedures leading to the adoption of these project approvals for the retail use, or the project approvals themselves, the Applicant and City each shall have the right, in their sole discretion, to elect whether or not to defend such action. The Applicant, at its sole expense shall defend, indemnify, and hold harmless the City (including its agents, officers, and employees) from any such action, claim, or proceeding with counsel chosen by the City, subject to Applicant’s approval of counsel, which shall not be unreasonably denied, and at the applicant’s sole expense. If the City is aware of such an action or proceeding, it shall promptly notify the applicant and cooperate in the defense. The Applicant, upon such notification, shall deposit sufficient funds in the judgment of City’s Finance Director to cover the expense of defending such action without any offset or claim against said deposit to assure that the City expends no City funds. If both Parties elect to defend, the Parties hereby agree to affirmatively cooperate in defending the said action and to execute a joint defense and confidentiality agreement in order to share and protect information, under the joint defense privilege recognized under the applicable law. As part of the cooperation in defending an action, City and the applicant shall coordinate their defense in order to make the most efficient use of legal counsel and to share and protect information. Applicant and City shall each have sole discretion to terminate its defense at any time. The City shall not settle any third party litigation of project approvals without Applicant’s consent, which consent shall not be unreasonably withheld, conditioned or delayed unless applicant materially breaches this indemnification requirement. 5. In accepting this CUP and operating a business pursuant thereto, the Applicant acknowledges that the regulation of the production, distribution, sale, and use of cannabis remains in flux due to the relative novelty of these uses and conflicts with federal law. Applicant agrees that the Applicant remains at risk and subject to all changes in federal, state, and City regulations, including the possibility of the discontinuance of such uses or the imposition of additional requirements that render continuing operations infeasible, and does not gain a vested right to continue to operate in any particular manner, in any particular place, or at all. 96 PLANNING COMMISSION RESOLUTION NO. 2870 5 6. The manufacturing operations shall not include any volatile solvents. Volatile solvents are chemicals that produce a flammable gas or vapor and include, but are not limited to: butane, heptane, hexane, and propane. 7. The manufacturing operations shall consistent solely of non-volatile solvent manufacturing or mechanical extraction. Examples of non-volatile solvents include, but are not limited to, ethanol, carbon dioxide, cooking oils, and butter. 8. The cannabis distribution use is limited to this location and the use described herein shall be subject to the restrictions and limitations set forth herein which are in addition to the approved use standards listed in the PDMC, and state statutes now in force, or which hereafter may be in force. 9. Prior to issuance of a building permit for improvements and use contemplated by this approval, the Applicant shall first obtain permits and/or clearance from the following agencies: Coachella Valley Water District (CVWD) Burrtec Waste Management Fire Department Riverside County Environmental Health Evidence of said permit or clearance from the above agencies shall be presented to the Department of Building & Safety at the time of issuance of a building permit for the use contemplated herewith. 10. The cannabis commercial distribution use of this property shall not commence until the Applicant can provide the City’s Development Services Department with proof of a license issued by the State Bureau of Cannabis Control and they receive a City cannabis regulatory permit. Continued use of the property for cannabis purposes is subject to the Applicant maintaining a valid license from the State Bureau and demonstrating on-going compliance with the City’s cannabis regulatory permit. 11. The cannabis manufacturing use of this property shall not commence until the Applicant can provide the City’s Development Services Department with proof of a license issued by the State Bureau of Cannabis Control and they receive a City cannabis regulatory permit. Continued use of the property for cannabis purposes is subject to the Applicant maintaining a valid license from the State Bureau and demonstrating on-going compliance with the City’s cannabis regulatory permit. 12. The premises shall be equipped with an odor absorbing ventilation and exhaust system so that odors generated inside the cannabis business is not detected outside of the business, anywhere on adjacent properties, public right-of-way, or in any exterior or interior common areas or tenant spaces. As such, the Applicant shall install odor mitigation equipment in accordance with the plans on file as part of this application, and to the satisfaction of the Building Official. Should odor issues arise, the Development Services Department may require additional odor control measures to be employed. At a minimum the Applicant shall install the following: 97 PLANNING COMMISSION RESOLUTION NO. 2870 6 A. Air filtration system with odor control that prevents internal odors from being emitted externally. B. Air systems that create negative air pressure between the cannabis business and the exterior. 13. Within twenty-four (24) hours of any complaint concerning odors or noise emanating from or originating within the facility, the operator shall respond to the complaint in question, and shall timely file a written disclosure to the Development Services department documenting any and all actions taken and planned to address the complaint. 14. Security features shall be installed within the tenant lease spaces in accordance with the plans on file as part of this application. All security features shall be installed and maintained as specified in the City’s Cannabis Regulatory Permit regulations. 15. The Applicant is required to have on-site security personnel during business hours. Security personnel shall be licensed with the State Bureau of Security and Investigative Services. 16. The Applicant shall comply with all applicable provisions of the PDMC Sections 5.101 (Commercial Cannabis Business Regulatory Permits), 8.38 (Personal Use of Cannabis), and 25.34.120 (Commercial Cannabis Business and Personal Cultivation). 17. Exterior building signs are not a part of this approval. All exterior building signs shall be submitted to the Development Services Department along with a Sign Application for staff review. 18. From the public right-of-way, no exterior evidence, other than a building sign to identify the retail operation of cannabis products is permitted. 19. All mechanical equipment, either roof or ground mounted, shall be screened from public view. All such equipment shall be fully screened by the roof structure, parapet wall, ground mounted walls, berming and/or landscape. 20. All window and door security devices such as metal bars, gates, and shutters shall be installed within the interior of the building and screened from public view. 21. There shall be no exterior building-mounted signage indicating that the business is a cannabis facility. 22. There shall be no on-site retail operations at this location. 23. Operation of the cannabis business outside of these approvals and conditions shall constitute a violation of the PDMC and shall be enforced pursuant to the provisions in the PDMC. On- going violations which are not remedied within a timeframe established by the Development Services Director may result in revocation of the CUP and Cannabis Regulatory Permit. 98 PLANNING COMMISSION RESOLUTION NO. 2870 7 24. The Applicant shall submit a building plan, which includes a modified floor plan to review. The floor plan shall generally be consistent with the floor plan attached to this resolution as Exhibit B. 25. Prior to permit issuances, the Applicant shall remit all unpaid taxes to the City of Palm Desert from September 2019 through November 2023 in accordance with Chapter 3.50 of the Palm Desert Municipal as deemed sufficient by the Tax Administrator, or designee. 26. Prior to permit issuances, the Applicant provide proof that all past due cannabis taxes have been remitted to the State of California. 27. Prior to business activities, the Applicant shall submit a new Cannabis Regulatory Permit application in accordance with Palm Desert Municipal Code Chapter 5.101. 28. Prior to business activities, the Applicant shall submit new or modified business license application and certificate of use for the business to show the changes to the use. 29. This permit shall lapse and become void within one (1) year of the effective date unless prior to expiration a building permit is issued and construction is commenced and diligently pursued. 30. The Applicant shall be required to place new insulations as necessary in all walls to prevent odors from escaping the facility. 31. The Applicant shall provide employees a shower facility at the site. 32. City staff may inspect the facility at any time to ensure compliance with this Conditional Use Permit and the Palm Desert Municipal Code. BUILDING AND SAFETY DEPARTMENT: 33. This project shall comply with the latest adopted edition of the following codes: A. California Building Code and its appendices and standards. B. California Plumbing Code and its appendices and standards. C. California Mechanical Code and its appendices and standards. D. California Electrical Code. E. California Energy Code. F. California Green Building Standards Code G. California Administrative Code. H. California Fire Code and its appendices and standards. 34. Provide the following design data on the first sheet: A. Occupancy group(s). B. Type(s) of construction, including fire sprinklers CBC Section 107.2. 99 PLANNING COMMISSION RESOLUTION NO. 2870 8 35. All contractors and subcontractors shall have a current City of Palm Desert Business License prior to permit issuance per PDMC, Title 5. 36. All contractors and/or owner-builders must submit a valid Certificate of Workers’ Compensation Insurance coverage prior to the issuance of a building permit per California Labor Code, Section 3700. 37. Address numerals shall comply with Palm Desert Ordinance No. 1310 (Palm Desert Municipal Code 15.28. Compliance with Ordinance 1310 regarding street address location, dimension, a stroke of line, distance from the street, height from grade, height from the street, etc. shall be shown on all architectural building elevations in detail. Any possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons that may render the building address unreadable shall be addressed during the plan review process. You may request a copy of Ordinance 1310 or Municipal Code Section 15.28 from the Department of Building and Safety counter staff. 38. Please contact the Department of Building and Safety (760-776-6420) regarding the addressing of all buildings and/or suites. 100 PLANNING COMMISSION RESOLUTION NO. 2870 9 EXHIBIT B FLOOR PLAN 101 102 Page 1 of 5 CITY OF PALM DESERT PLANNING COMMISSION STAFF REPORT MEETING DATE: May 21, 2024 PREPARED BY: Carlos Flores, AICP, Principal Planner REQUEST: CONSIDER REVOCATION OF CONDITIONAL USE PERMIT 2017-0033 FOR THE OPERATION OF A CANNABIS BUSINESS AT 73818 DINAH SHORE DRIVE RECOMMENDATION: Adopt Resolution No. 2870 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, REVOKING, IN ITS ENTIRETY, CONDITIONAL USE PERMIT NO. 17-0033 FOR THE OPERATINO OF A CANNABIS BUSINESS ON THE PROPERTY LOCATED AT 73818 DINAH SHORE DRIVE” BACKGROUND/ANALYSIS: On July 17, 2018, the City of Palm Desert Planning Commission (Commission) adopted Planning Commission Resolution No. 2730 (Reso 2730), which approved Conditional Use Permit 17-0033 (CUP 17-0033) to allow for the operation of a Cannabis Business at 73818 Dinah Shore Drive (APN: 694080007), conditioned upon a total of 25 conditions of approval that needed to be adhered to. The approval also approved both a use and floor plan as presented on the application’s statement of operations and site plan. Department of Cannabis Control Licensing The State of California Department of Cannabis Control (DCC) is the state licensing and regulatory agency for cannabis businesses. All cannabis operators must obtain a state license after receiving local approvals to operate. In 2023, Thinc Cubed (“Permittee”) received the following licenses: - On January 24, 2023, DCC issued a Commercial Distributor license to the Permittee (License No. C11-0001786-LIC), which allows an operator to move both cannabis and cannabis products between cultivation, manufacturing, or distribution premises, move finished cannabis goods to retail premises, provide storage services to other licensees, and arrange for the testing of cannabis goods. - On March 8, 2023, DCC issued a Manufacturer Type 7 license to the Permittee (License No. CDPH-10004878), which allows for the use of volatile solvents for extraction or post- extraction processing of cannabis extras, as well as the use of non-volatile solvents and mechanical methods for extraction. A Manufacturer Type 7 license also allows for the infusion, packaging, and labeling of cannabis product. Project Description: 103 City of Palm Desert – Planning Commission CUP17-0033 Page 2 of 5 On November 28, 2023, an explosion and fire damaged the building at 73818 Dinah Shore Drive. This incident caused significant damage to the building’s structure and rendered both occupation and operation of the building impossible. The cause of the explosion is still under investigation. The applicant recently submitted building plans for review However, on January 24, 2024, the Permittee’s Commercial Distributor license expired, without renewal from DCC, and on March 8, 2024, the Permittee’s Manufacturer Type 7 license expired, without renewal from DCC. The Permittee did not submit applications to DCC to renew either of these licenses. On May 2, 2024, the City’s Department of Development Services was informed by DCC that both of Permittee’s licenses had fully expired; meaning they can no longer renew the existing license and must submit a new application to DCC. Analysis Pursuant to Palm Desert Municipal Code (PDMC) 25.72.050(J), the Planning Commission is the designated decision-making body authorized to modify, suspend, or revoke a Conditional Use Permit. This decision must be made upon receiving satisfactory evidence and making the finding that the permittee, its agent(s), employee(s), or any person connected or associated with the permittee has committed any one of the following: 1) has failed to comply with any applicable provisions of the PDMC, including, but not limited to, the City’s building, zoning, and health regulations; or 2) has failed to comply with any condition imposed by the Conditional Use Permit; or 3) has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code The findings of fact supporting revocation based on objective substantial information of the record are provided under Section 3 of the attached draft Resolution and are restated below: Finding 1: The Permittee has failed to comply with the PDMC, including but not limited to the City’s building, zoning, and health regulations Findings of Fact: A. Thinc Cubed (Permittee) has not paid required cannabis taxes to the City of Palm Desert since October 2023 (PDMC 3.50.030; PDMC 3.50.040) B. The Permittee has not maintained the required state licenses for operation of the cannabis business, as required under PDMC 5.101.030(A). DCC has confirmed that the Permittee’s Commercial Distributor license and Manufacturer Type 7 license have both expired. The licenses have both expired for more than sixty (60) days. C. Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the City Manager (PDMC 5.101.100). The DCC issued licenses were not renewed 61 days after the expiration. Additionally, the Permittee has not operated at the building since November 28, 2023 and there have been no construction permits issued to repair the building. 104 City of Palm Desert – Planning Commission CUP17-0033 Page 3 of 5 Finding 2: The Permittee has failed to comply with multiple conditions of approval imposed by CUP 17-0033. Findings of Fact: The Permittee has violated three (3) conditions of approval of CUP 17-033 per Reso 2730. This includes Conditions of Approval numbers 6, 10, and 15. The following is a list of the conditions of approval, and how the Permittee has failed to comply: A. Condition No. 6: The cannabis manufacturing use of this property shall not commence until the applicant can provide the City’s Department of Community Development with proof of a license issued by the State Bureau of Cannabis Control. Continued use of the property for cannabis purposes is subject to the applicant maintaining a valid license from the State Bureau and demonstrating ongoing compliance with the City’s cannabis regulatory permit. Violation 1: The Permittee has not maintained the required state licenses for operation of the cannabis business, as required under PDMC 5.101.030(A). DCC has confirmed that the Permittee’s Commercial Distributor license and Manufacturer Type 7 license have both expired and are no longer eligible to be renewed. Violation 2: The Permittee has not paid required cannabis taxes to the City of Palm Desert for November 2023 (PDMC § 3.50.030). Violation 3: The Permittee reported activity in February of 2024 in the Marijuana Enforcement Tracking Reporting Compliance (Metrc) track and trace software, which is a third-party vendor used by DCC, however the business was not in operation at this location. B. Condition No. 10: The applicant shall comply with all applicable provisions of the PDMC Section 5.101 (Commercial Cannabis Regulatory Permits), 8.38 (Personal Use of Cannabis), and 25.34.120 (Commercial Cannabis Business and Personal Cultivation). Per PDMC 5.101.100, every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is used, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the City Manager. The DCC issued licenses (License No. C11-0001786-LIC and License No. CDPH- 10004878) were not renewed 61 days after the expiration. Additionally, the Permittee has not operated at the building since November 28, 2023 but is reporting activity. C. Condition No. 15: Operation of the cannabis business outside of these approvals and conditions shall constitute a violation of the PDMC and shall be enforced pursuant to the provisions in the PDMC. Ongoing violations which are not remedied within a timeframe 105 City of Palm Desert – Planning Commission CUP17-0033 Page 4 of 5 established by the Community Development Director may result in revocation of the CUP and Cannabis Regulatory Permit. The Permittee, having expired DCC issued licenses and not paying the City’s cannabis taxes, violates the PDMC and the conditions of approval listed out in Reso 2730. CUP 17-0033 approval requires continued compliance with the conditions of approval from Reso 2730, including maintaining active DCC licenses. Finding 3: The Permittee has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. Findings of Fact: A. The November 28, 2023 explosion and fire at 73818 Dinah Shore Drive led to significant damage to the building, that has yet to be repaired and cannot be occupied. However, the Permittee has reported manufacturing activity in February 2024 under the license assigned to this property which has been referred to DCC for investigation. As a result, we deem it a public nuisance, as it poses a risk to the life, health, and safety of the public in accordance with the PDMC. Environment Assessment/Environmental Review: The City of Palm Desert, in its capacity as the Lead Agency for this project and pursuant to the California Environmental Quality Act (CEQA), finds and determines that the action is categorically exempt from the provisions of CEQA, per State CEQA Guidelines, Section 15321 – Enforcement Actions by Regulatory Agencies. This exemption covers actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory agency or enforcement of a law, general rule, standard, or objective, administered, or adopted by the regulatory agency. This action includes the adoption of an administrative decision or order enforcing or revoking the lease, permit, license, certificate, or entitlement for use or enforcing the general rule, standard, or objective. The action is the revocation of a Conditional Use Permit (entitlement/permit) as a response to the Permittee’s violation of Local and State rules and regulations. Public Input: Public Notification Public noticing was conducted for this Planning Commission meeting per the requirements of PDMC Section 25.60.060 and Government Code Sections 65090 to 65094. A public hearing notice was published a minimum of ten (10) days before the hearing date on Friday, May 10, 2024, in The Desert Sun newspaper. Notices were mailed to all property owners within 300 feet of the project site. Additionally, in accordance with the requirements of PDMC 25.72.050(K) notice was provided via hand delivery and certified mail to the Permittee. This meeting, as required, is occurring within forty (40) days of the City learning of the violation on May 2, 2024. 106 City of Palm Desert – Planning Commission CUP17-0033 Page 5 of 5 Findings of Approval: Findings of Approval for this report can be found in the draft Resolution attached to this report. LEGAL REVIEW: This staff report was reviewed by the City Attorney’s office. ATTACHMENTS: 1. Draft Resolution No. 2870 2. PC Resolution No. 2730 3. DCC Email Regarding Expiration 4. Public Hearing Notice 5. Revocation Notice 107 108 1 PLANNING COMMISSION CITY OF PALM DESERT REGULAR MEETING MINUTES May 21, 2024, 6:00 p.m. Present: Commissioner Nancy DeLuna, Commissioner John Greenwood, Commissioner Ron Gregory, Commissioner Lindsay Holt, Chair Joseph Pradetto Staff Present: Director of Development Services Richard Cannone, Recording Secretary Monique Lomeli, Principal Planner Nick Melloni, Principal Planner Carlos Flores, Legal Counsel Oscar Verdugo 1. CALL TO ORDER A Regular Meeting of the Planning Commission was called to order by Chairman Pradetto on Tuesday, May 21, 2024, at 6:00 p.m. in the Council Chamber, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE Vice Chair Gregory led the Pledge of Allegiance. 4. NON-AGENDA PUBLIC COMMENTS None. 5. CONSENT CALENDAR Motion by: Commissioner Greenwood Seconded by: Commissioner DeLuna To approve the consent calendar as presented. Motion Carried 5.a APPROVAL OF MINUTES Motion by: Commissioner Greenwood Seconded by: Commissioner DeLuna Approve the Minutes of May 7, 2024. Motion Carried (5 to 0) 109 2 6. CONSENT ITEMS HELD OVER None. 7. ACTION CALENDAR 7.a REVIEW OF FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM FOR CONSISTENCY WITH THE CITY OF PALM DESERT GENERAL PLAN Principal Planner Nick Melloni narrated a PowerPoint presentation and responded to Commissioner inquiries. Motion by: Commissioner Gregory Seconded by: Commissioner DeLuna Adopt Planning Commission Resolution No. 2867 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT CALIFORNIA, FINDING THAT THE PROPOSED CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2024-2025 AND EACH OF THE PROJECTS INCORPORATED THEREIN, ARE CONSISTENT WITH THE PALM DESERT GENERAL PLAN AND A FINDING THAT THE ACTION IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). Motion Carried (5 to 0) 8. PUBLIC HEARINGS 8.a CONSIDERATION OF A PRECISE PLAN AND CONDITIONAL USE PERMIT TO DEVELOP A 40-UNIT MULTIFAMILY DEVELOPMENT ON A SITE LOCATED AT ASSESSOR’S PARCEL NUMBER 622-370-014 AND FINDING THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). Commissioner DeLuna announced her recusal due to a business conflict and left the meeting room. Commissioner Greenwood announced his recusal due to the project's proximity to his residence and left the meeting room. Principal Planner Melloni narrated a PowerPoint presentation and responded to Commissioner inquiries. Chair Pradetto opened the public hearing. Jeff Ryan, applicant, provided information regarding the proposed setbacks and intended use of the development and urged the Commission to consider the value of the services to be provided at the location, including its proximity to Desert ARC. Josie Gonzales, Palm Desert resident, expressed concerns regarding the height of the development and impact on the privacy of surrounding properties. 110 3 Richard Cruz, Palm Desert resident, expressed support for the project provided the development is gated and not open to the general public. Laurel Miller, Palm Desert resident, expressed concerns regarding the impact to the property and resale values of surrounding properties. Jeff Ryan, applicant, confirmed the security gate will remain in place and access to surrounding neighborhoods will be limited to emergency access only. In response to Commissioner inquiries, the applicant provided comments regarding the potential for modifications to the windows used on units located on the southern portion of the property to mitigate line -of-sight concerns. Chair Pradetto closed the public hearing there being no others requesting to speak. Motion by: Commissioner Gregory Seconded by: Commissioner Holt Adopt Planning Commission Resolution No. 2868 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT CALIFORNIA, APPROVING A PRECISE PLAN AND CONDITIONAL USE PERMIT TO DEVELOP A 40-UNIT MULTIFAMILY APARTMENT DEVELOPMENT ON A SITE LOCATED AT ASSESSOR’S PARCEL NUMBER 622-370-014, AND FINDING THAT THE PROJECT IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. CASE NOs. PP24-0001 / CUP24-0003," inclusive of the modification to Condition of Approval No. 60 removing the requirement of Covenants, Conditions, & Restrictions (CC&Rs) and mandating the maintenance of site improvements located on the adjacent Desert ARC project; modifications to the landscaping plan to eliminate the use of purple Dodonaea Viscosa and Bauhinia x Blakeana; and modifications to the window treatments of the elevated units on the southern portion of the site plan. RECUSED (2): Commissioner DeLuna, and Commissioner Greenwood Motion Carried (3 to 0) Chair Pradetto left the meeting at 6:58 p.m. The Commission recessed at 6:58 p.m. and reconvened at 7:03 p.m. with four (4) members present. 8.b APPROVE A PRECISE PLAN FOR THE ARCHITECTURE AND LANDSCAPING FOR A 332 SINGLE FAMILY HOME RESIDENTIAL DEVELOPMENT ON THE SOUTH SIDE OF GERALD FORD AND WEST OF PORTOLA ROAD WITHIN THE REFUGE SPECIFIC PLAN Principal Planner Carlos Flores narrated a PowerPoint presentation and responded to Commissioner inquiries. Vice Chair Gregory opened the public hearing. 111 4 David Dwilde, Pulte Homes, provided a brief introduction and stated he is available for questions. Linda Candler, Palm Desert resident, inquired about the change in zoning of the subject property and voiced concerns regarding the reduction of the buffer requirement on the east and south boundaries of the subject property and the proposed elevation. Eglert Gutierrez, Palm Desert resident, voiced concerns regarding drainage and line of sight. James Sutherland, Palm Desert resident, voiced concerns regarding sand mitigation and inquired regarding the possibility of construction vehicles using Vitalia Way. Stephen Smoke, Palm Desert resident inquired as to whether the development would be limited to the 55+ community. Vice Chair Gregory closed the public hearing there being no others requesting to speak. Principal Planner Melloni and applicant David Dewilde responded to Commissioner inquiries regarding construction, drainage, age restrictions and changes to zoning and density. Motion by: Commissioner Greenwood Seconded by: Commissioner Holt Adopt Planning Commission Resolution No. 2869 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND APPROVING A PRECISE PLAN TO APPROVE ARCHITECTURE AND LANDSCAPING FOR A 332 SINGLE FAMIY HOME RESIDENTIAL DEVELOPMENT ON THE SOUTH SIDE OF GERALD FORD DRIVE AND WEST OF PORTOLA ROAD WITHIN THE EXISTING REFUGE SPECIFIC PLAN AREA (ASSESSOR’S PARCEL NUMBER 694-310-011 AND 694-310-003) Motion Carried (4 to 0) 8.c CONSIDER REVOCATION OF CONDITIONAL USE PERMIT 2017-0033 FOR THE OPERATION OF A CANNABIS BUSINESS AT 73818 DINAH SHORE DRIVE Principal Planner Flores narrated a PowerPoint presentation and responded to Commissioner inquiries. Vice Chair Gregory opened the public hearing. Erik Wilson, applicant representative, provided information regarding the company's background, and comments regarding the content of the staff report with respect to unpaid taxes, expired licenses, and applications for state licenses 112 5 that are pending complete rebuild; urged the Commission no to penalize the company/victim of fire and instead work with the applicant in its attempts to comply with requirements. LR Sanders, owner representative, provided comments regarding the condition of the building and the financial impact a revocation would have on the owner. Sam Spinello, Palm Desert property owner, spoke in favor of the revocation and stated concerns regarding risk of fire and financial impacts on surrounding businesses, and communication barriers between the applicant and neighboring businesses. Vice Chair Gregory closed the public hearing, there being no others desiring to speak. During the course of deliberations, Staff responded to Commission inquiries concerning the nature of the fire on the subject property and potential for modifications to the regulatory permit in lieu of complete revocation. Motion by: Commissioner Greenwood Seconded by: Commissioner Holt To continue this item to a date uncertain. NOES (1): Commissioner DeLuna Motion Carried (3 to 1) 9. INFORMATIONAL REPORTS & COMMENTS 9.a SUMMARY OF CITY COUNCIL ACTIONS Director of Development Services Richard Cannone reported that the City Council recently adopted a resolution denying a right-of-way vacation and denied an appeal of staff's determination that a living room may not be used as a bedroom in a short-term rental unit. 9.b COMMITTEE MEETING UPDATES 9.b.1 Cultural Arts Committee None. 9.b.2 Parks and Recreation Committee None. 9.c PLANNING COMMISSIONERS The Commission requested that staff investigate the possibility of providing digital devices for the purpose of reviewing agenda materials during Planning Commission meetings in an effort to be environmentally conscious and reduce unnecessary applicant fees. 113 6 9.d CITY STAFF Principal Planner Melloni reported that staff will be coordinating with Sunline Transit Agency on planning potential bus routes. 9.e ATTENDANCE REPORT A report was provided with the agenda materials; no action was taken on this item. 10. ADJOURNMENT The Planning Commission adjourned at 8:43 p.m. 11. PUBLIC NOTICES _________________________ Monique Lomeli, Senior Deputy Clerk Recording Secretary _________________________ Richard Cannone, Director of Development Services Staff Liaison 114 115 116 C I T Y O F P A L M D E S E R T 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760-776-6483 PLANNING@PALMDESERT.GOV CITY OF PALM DESERT PUBLIC HEARING NOTICE CASE NO. CUP 17-0033 NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BEFORE THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, TO CONSIDER THE MODIFICATION OF CONDITIONAL USE PERMIT 17-0033 FOR A CANNABIS FACILITY LOCATED AT 73818 DINAH SHORE DRIVE The City of Palm Desert (City), in its capacity as the Lead Agency for this project and pursuant to the California Environmental Quality Act (CEQA), has determined the project to be exempt from further environmental review pursuant to Administrative Code, Title 14, Chapter 4, Section 15321, Class 21 – Enforcement Actions by Regulatory Agencies PROJECT LOCATION: 73818 Dinah Shore Drive, Palm Desert (APN 694080007). PROJECT DESCRIPTION: The Planning Commission of the City of Palm Desert adopted Planning Commission Resolution No. 2730 to adopt a notice of exemption pursuant to CEQA and approve CUP17-0033 for a cannabis facility at 73818 Dinah Shore Drive. This CUP will be considered for modification. The Planning Commission is authorized to modify any conditional use permit approval as authorized by Section 25.72.050 of the Palm Desert Municipal Code. PUBLIC HEARING: NOTICE IS HEREBY GIVEN that the Planning Commission of the City of Palm Desert, California, will hold a Public Hearing at its meeting on July 16, 2024. The Planning Commission meeting begins at 6:00 p.m. in the Council Chamber at 73510 Fred Waring Drive, Palm Desert, California. Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person. Options for remote participation will be listed on the Posted Agenda for the meeting at https://www.palmdesert.gov/departments/city-manager-s-office/city-clerk/committee-calendar. PUBLIC REVIEW: The plans and related documents are available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. by contacting the project planner, Carlos Flores. Please submit written comments to the Planning Division. If any group challenges the action in court, 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 Planning Commission hearing. All comments and any questions should be directed to: Carlos Flores, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 776-6478 cflores@palmdesert.gov PUBLISH: THE DESERT SUN RICHARD D. CANNONE, AICP, SECRETARY JULY 5, 2024 PALM DESERT PLANNING COMMISSION 117 118 Page 1 of 1 CITY OF PALM DESERT PLANNING COMMISSION STAFF REPORT MEETING DATE: July 16, 2024 PREPARED BY: Carlos Flores, AICP, Principal Planner REQUEST: CONSIDERATION TO ADOPT A MITIGATED NEGATIVE DECLARATION AND APPROVE A CONDITIONAL USE PERMIT AND PRECISE PLAN FOR THE LIVING DESERT ZOO AND GARDENS EXPANSION PROJECT RECOMMENDATION: Continue this item to a date certain of August 6, 2024. BACKGROUND/ANALYSIS: Staff is recommending the item be continued to the regularly scheduled meeting of August 6 th, 2024, due to a lack of quorum. ATTACHMENTS: None 119 120 Page 1 of 5 CITY OF PALM DESERT PLANNING COMMISSION STAFF REPORT MEETING DATE: July 16, 2024 PREPARED BY: Nick Melloni, AICP, Principal Planner REQUEST: CONSIDERATION OF REVOCATION OF CONDITIONAL USE PERMIT NO. 17-0018 FOR THE OPERATION OF A CULTIVATION, MANUFACTURING, DISTRIBUTION, DELIVERY AND RETAIL CANNABIS BUSINESS LOCATED AT 42-650 MELANIE PLACE RECOMMENDATION: Adopt Resolution No. 2878 entitled, “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, REVOKING, IN ITS ENTIRETY, CONDITIONAL USE PERMIT NO. 17-0018 FOR THE OPERATION OF A CULTIVATION, MANUFACTURING, DISTRIBUTION, DELIVERY AND RETAIL CANNABIS BUSINESS LOCATED AT 42 -650 MELANIE PLACE” BACKGROUND/ANALYSIS: Conditional Use Permit (CUP): On November 20, 2018, the City of Palm Desert Planning Commission adopted Resolution No. 2742 (Attachment 2), approving a Conditional Use Permit (“CUP”) to allow the operation of a cannabis business located at 42-650 Melanie Place (Assessor’s Parcel Number 634-260-012). The cannabis business was operated by the permittee West Coast Cannabis Club (“WCCC”) and included cultivation, manufacturing, distribution, delivery, and retail operations subject to twenty-six (26) conditions of approval. On May 19, 2020, the Planning Commission adopted Resolution No. 2775 (Attachment 3), which approved an amendment to Condition of Approval No. 5 of the original CUP. City Cannabis Regulatory Permit: In addition to the CUP, all commercial cannabis businesses within the City of Palm Desert (“City”) must obtain and maintain a Cannabis Regulatory Permit in accordance with Palm Desert Municipal Code (“PDMC”) Chapter 5.101. The regulatory permit must be approved as a prerequisite to operating a cannabis business, obtaining building permits for improvements associated with a cannabis business, and prior to the approval of State licensing. The regulatory permit requires that the permittee adhere to City requirements for cannabis business operations and is valid for one (1) year from issuance, unless it is suspended or revoked sooner. WCCC was issued Commercial Cannabis Regulatory Permit (“CCRP”) No. 23-0023 on January 31, 2024 (Attachment 4), with a set expiration date of January 31, 2025. Department of Cannabis Control Licensing The State of California Department of Cannabis Control (“DCC”) is the State licensing and regulatory agency for cannabis businesses. All cannabis operators must obtain a State license 121 City of Palm Desert – Planning Commission CUP17-0018 – Revocation of West Coast Cannabis Club Page 2 of 5 after receiving local approvals. On June 28, 2019, West Coast Cannabis Club. (“Permittee”) received license approval from DCC as a Commercial – Microbusiness (License No. Number C12-0000119-LIC). This license allowed the operator to conduct activities including distributor, level 1 manufacturer, indoor cultivation, and retail use. The State Cannabis License is valid for one (1) year at a time and requires annual renewal, unless surrendered or revoked sooner. Project Description On June 25, 2024, the business owner, Kenneth Churchill, notified the City that the business would officially cease operating on June 26, 2024, at 5:00 PM and would not be renewing its state cannabis license. An email sent by City staff to the business owner documenting the discussion of this closure and non-renewal is included as Attachment 5 of this report. The business owner also indicated they would address any back taxes owed to the City for cannabis taxes. Additionally, the permittee stated they would liquidate and/or remove existing equipment located on the property. On June 27, 2024, WCCC’s state cannabis license lapsed and fully expired. An image capture of the DCC website listing the official license status is provided as Attachment 6 of this report. To date, WCCC has failed to renew its state cannabis license. On July 1, 2024, City staff issued notices (Attachments 7.1 and 7.2) to both the property owner and business owner, Mr. Churchill, notifying them of the violations of the CUP, citing the grounds for the CUP revocation, and making them each aware of the date, time, and location of a public hearing before the Planning Commission to consider revocation of the CUP. The grounds for revocation include: 1. Violation of Condition of Approval #7. As of June 27, 2024, West Coast Cannabis Club does not have an active license from the State of California Department of Cannabis Control (“DCC”) and cannot continue to use this property for cannabis business purposes. B. Violation of Condition of Approval #11. West Coast Cannabis Club is not in compliance with all provisions of Palm Desert Municipal Code (PDMC) Section 5.101 as it pertains to Commercial Cannabis Business Regulatory Permits, due to the abandonment or quitting of the permitted premises. a. Pursuant to PDMC 5.101.100: Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the City Manager. ANALYSIS Pursuant to PDMC 25.72.050(J), the Planning Commission is the designated decision -making body authorized to modif y, suspend, or revoke a conditional use permit. This decision must be made upon receiving satisfactory evidence and making the finding that the Permittee, its agent(s), employee(s), or any person connected or associated with the permittee: 122 City of Palm Desert – Planning Commission CUP17-0018 – Revocation of West Coast Cannabis Club Page 3 of 5 (1) has failed to comply with any applicable provision of the Palm Desert Municipal Code, including, but not limited to, the City’s building, zoning, and health regulations; or (2) has failed to comply with any condition imposed by the conditional use permit; or (3) has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. Findings of fact supporting revocation are provided under Section 3 of the Attached Draft Resolution and are restated below. Finding 1.): The Permittee has failed to comply with applicable provisions of the Palm Desert Municipal Code, including but not limited to the City’s building, zoning, and health regulations. Findings of Fact: Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the [regulatory] permit to the City Manager (PDMC 5.101.100). The DCC issued license was allowed to lapse and fully expire. Additionally, the Permittee has not engaged in cannabis business operations at the Property since June 26, 2024. Finding 2.): The Permittee has failed to comply with a condition or conditions imposed by the conditional use permit. Findings of Fact: West Coast Cannabis Club has failed to comply with two conditions of approval of CUP17- 018, approved per Resolution No. 2742 and adopted on November 20, 2018; specifically, Conditions of Approval Nos. 7 and 11. The following is an overview of the Conditions of Approval and how West Coast Cannabis Club has violated or failed to comply with said Conditions of Approval: 1. Condition No. 7: The cannabis manufacturing, cultivation, distribution, and delivery uses of this property shall not commence until the applicant can provide the City’s Community Development Department with proof of a license issued by the State Bureau of Cannabis Control. Continued use of the property for cannabis purposes is subject to the applicant maintaining a valid license from the State Bureau and demonstrating on-going compliance with the City’s cannabis regulatory permit. The Permittee has failed to maintain a valid license issued by the State. On June 27, 2024, the Permittee allowed Department of Cannabis Control (“DCC”) License No. C12-0000119-LIC, which authorized distribution, manufacturing, indoor cultivation, and retail cannabis use, to lapse and fully expire. DCC records confirm the license is expired. B. Condition No. 11: The applicant shall comply with all applicable provisions of the PDMC Section 5.101 (Commercial Cannabis Regulatory Permits), 8.38 (Personal Use of Cannabis), and 25.34.120 (Commercial Cannabis Business and Personal Cultivation). 123 City of Palm Desert – Planning Commission CUP17-0018 – Revocation of West Coast Cannabis Club Page 4 of 5 Per PDMC 5.101.100, every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is used, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the [regulatory] permit to the City Manager. The DCC issued license (License No. C12-0000119-LIC) was allowed to lapse and fully expire on June 27, 2024. Additionally, the Permittee has not engaged in cannabis business operations at the Property since June 26, 2024. Finding 3.): The Permittee has allowed the existence of or has created a public nuisance in violation of the Palm Desert Municipal Code. Findings of Fact: There is no substantial evidence that West Coast Cannabis Club has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. In December 2023, the City Building Official and Riverside County Fire Marshal conducted an inspection of the premises and did not report findings of public nuisance in violation of applicable codes. The facility obtained fire clearance in January 2024 and subsequently was issued a City Commercial Cannabis Regulatory Permit (CCRP23-0023) on January 25, 2024. Since that time, there have been no reports or findings of public nuisance. This finding cannot be made. Findings can be made based on substantial evidence to support revocation of Conditional Use Permit (“CUP”) 17-0018. Environmental Assessment/Environmental Review : The City of Palm Desert (“City”), in its capacity as the Lead Agency for this project and pursuant to the California Environmental Quality Act (“CEQA”), finds and determines that the project is categorically exempt from the provisions of CEQA, per State CEQA Guidelines, Section 15321 – Enforcement Actions by Regulatory Agencies. This exemption covers actions by regulatory agencie s to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory agency or enforcement of a law, general rule, standard, or objective, administered or adopted by the regulatory agency. This action includes the adoption of an administrative decision or order enforcing or revoking the lease, permit, license, certificate, or entitlement for use or enforcing the general rule, standard, or objective. The project is the revocation of a con ditional use permit (entitlement/permit) as a response to the permittee’s violation of local rules and regulations. Public Input: Public Notification Public noticing was conducted for the meeting of July 16, 2024, Planning Commission meeting per the requirements of PDMC Section 25.60.060 and Government Code Sections 65090 to 65094. A public hearing notice (Attachment 8) was published a minimum of ten (1 0) days before the hearing date on Friday, July 5, 2024, in The Desert Sun newspaper. Notices were mailed to all property owners within 300 feet of the project site. 124 City of Palm Desert – Planning Commission CUP17-0018 – Revocation of West Coast Cannabis Club Page 5 of 5 Additionally, in accordance with the requirements of PDMC 25.72.050(K), notice was provi ded via property posting and certified mail to the business owner. This meeting as required, is occurring within forty (40) days of the City learning of the violation on June 25, 2024. LEGAL REVIEW: This report has been reviewed by the City Attorney. FINANCIAL IMPACT: There is no anticipated financial impact from this action. ATTACHMENTS: 1. Draft Planning Commission Resolution No. 2878 2. Planning Commission Resolution No. 2742 3. Planning Commission Resolution No. 2775 4. City Cannabis Regulatory Permit CCRP 23-0023 5. June 25, 2024, City staff email to West Coast Cannabis Club regarding closure 6. DCC Website Capture 7.1 Notice to Business Owner of Hearing to Consider Revocation 7.2 Notice to Property Owner of Hearing to Consider Revocation 8. Public Hearing Notice 125 126 PLANNING COMMISSION RESOLUTION NO. 2878 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, REVOKING, IN ITS ENTIRETY, CONDITIONAL USE PERMIT NO. 17-0018 FOR THE OPERATION OF A CULTIVATION, MANUFACTURING, DISTRIBUTION, DELIVERY AND RETAIL CANNABIS BUSINESS LOCATED AT 42-650 MELANIE PLACE CASE NO. CUP17-0018 REVOCATION WHEREAS, the City of Palm Desert (“City”) has gathered substantial evidence regarding the subject establishment’s violations of the terms and conditions of CUP 17-0018, as well as violations of other ordinances and various provisions of law, as presented to the Planning Commission in the administrative record, including but not limited to, staff and public testimony, and other evidence as referenced in this resolution as fully set forth herein; and WHEREAS, on November 20, 2018, the City of Palm Desert Planning Commission adopted Resolution No. 2742, approving a Conditional Use Permit (“CUP”) to operate a cultivation, manufacturing, distribution, delivery, and retail cannabis business subject to twenty-six (26) conditions located at 42-650 Melanie Place, Palm Desert, California (“Property”); and WHEREAS, on June 28, 2019, the California Department of Cannabis Control (“DCC”) issued a Commercial Cannabis Microbusiness license (License No. Number C12-0000119- LIC) to allow West Coast Cannabis Club to operate at the property at the subject Property; and WHEREAS, on May 19, 2020, the City of Palm Desert Planning Commission adopted Resolution No. 2775, approving an amendment to the CUP; and WHEREAS, on July 1, 2024, written notice of a hearing to consider revocation of CUP17-0018 in its entirety scheduled for July 16, 2024, at 6:00 p.m. with the Planning Commission in the Council Chamber located at 73510 Fred Waring Drive, Palm Desert, was provided to West Coast Cannabis Club (“Permittee”); and WHEREAS, pursuant to Palm Desert Municipal Code (“PDMC”) § 25.72.050(J), the Palm Desert Planning Commission is authorized to make findings to modify, discontinue, suspend, or revoke any Conditional Use Permit issued pursuant to Title 25 of the PDMC; and WHEREAS, the Planning Commission finds and determines that this proposed action is categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”), per State CEQA Guidelines Section 15321 – Enforcement Actions by Regulatory Agencies; and WHEREAS, the Planning Commission did on July 16, 2024, hold a duly noticed public hearing to consider this revocation; and WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the Planning Commission 127 PLANNING COMMISSION RESOLUTION NO. 2878 2 did find the following facts and reasons, which are outlined in the staff report, exist to justify revocation of the Conditional Use Permit. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: SECTION 1. Recitals. The Planning Commission hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Supporting Evidence. The staff report and attachments and all the information, evidence, and testimony presented at the July 16, 2024, public hearing are incorporated herein by reference. SECTION 3. Findings. Based on the supporting evidence presented to the Planning Commission at the Public Hearing on July 16, 2024, including the staff report with attachments and all information presented at the hearing in support of and in oppo sition to the revocation, the Planning Commission makes the following independent findings in accordance with Palm Desert Municipal Code (PDMC) Section 25.72.050(J): Finding 1.): The Permittee has failed to comply with applicable provisions of the Palm Desert Municipal Code, including but not limited to the City’s building, zoning, and health regulations. Findings of Fact: Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the [regulatory] permit to the City Manager (PDMC 5.101.100). The DCC issued license was allowed to lapse and fully expire. Additionally, the Permittee has not engaged in cannabis business operations at the Property since June 26, 2024. Finding 2.): The Permittee has failed to comply with a condition or conditions imposed by the conditional use permit. Findings of Fact: West Coast Cannabis Club has failed to comply with two conditions of approval of CUP17-018, approved per Resolution No. 2742 and adopted on November 20, 2018; specifically, Conditions of Approval Nos. 7 and 11. The following is an overview of the Conditions of Approval and how West Coast Cannabis Club has violated or failed to comply with said Conditions of Approval: A. Condition No. 7: The cannabis manufacturing, cultivation, distribution, and delivery uses of this property shall not commence until the applicant can 128 PLANNING COMMISSION RESOLUTION NO. 2878 3 provide the City’s Community Development Department with proof of a license issued by the State Bureau of Cannabis Control. Continued use of the property for cannabis purposes is subject to the applicant maintaining a valid license from the State Bureau and demonstrating on-going compliance with the City’s cannabis regulatory permit. The Permittee has failed to maintain a valid license issued by the State. On June 27, 2024, the Permittee allowed Department of Cannabis Control (“DCC”) License No. C12-0000119-LIC, which authorized distribution, manufacturing, indoor cultivation, and retail cannabis use, to lapse and fully expire. DCC records confirm the license is expired. B. Condition No. 11: The applicant shall comply with all applicable provisions of the PDMC Section 5.101 (Commercial Cannabis Regulatory Permits), 8.38 (Personal Use of Cannabis), and 25.34.120 (Commercial Cannabis Business and Personal Cultivation). Per PDMC 5.101.100, every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is used, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the [regulatory] permit to the City Manager. The DCC issued license (License No. C12 - 0000119-LIC) was allowed to lapse and fully expire on June 27, 2024. Additionally, the Permittee has not engaged in cannabis business operations at the Property since June 26, 2024. Finding 3.): The Permittee has allowed the existence of or has created a public nuisance in violation of the Palm Desert Municipal Code. Findings of Fact: There is no substantial evidence that West Coast Cannabis Club has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. In December 2023, the City Building Official and Riverside County Fire Marshal conducted an inspection of the premises and did not report findings of public nuisance in violation of applicable codes. The facility obtained fire clearance in January 2024 and subsequently was issued a City Commercial Cannabis Regulatory Permit (CCRP23-0023) on January 25, 2024. Since that time, there have been no reports or findings of public nuisance. This finding cannot be made. SECTION 4. Environmental Review. The proposed action is categorically exempt from further environmental review and the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15321 (Class 21 - Enforcement Actions by Regulatory Agencies). 129 PLANNING COMMISSION RESOLUTION NO. 2878 4 SECTION 5. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s office at 73510 Fred Waring Drive, Palm Desert, CA 92260. Richard D. Cannone, AICP, the Secretary to the Palm Desert Planning Commission, is the custodian of the record of proceedings. SECTION 6. Execution of Resolution. The Chairperson of the Planning Commission signs this Resolution, and the Secretary to the Commission shall attest and certify the passage and adoption thereof. SECTION 7. Revocation. The Planning Commission hereby revokes Conditional Use Permit 17-0018 in its entirety as approved by Planning Commission Resolution No. 2742 and as amended by Planning Commission Resolution No. 2775. ADOPTED ON July 16, 2024. JOSEPH PRADETTO CHAIRPERSON ATTEST: RICHARD D. CANNONE, AICP SECRETARY I, Richard D. Cannone. AICP, Secretary of the City of Palm Desert Planning Commission, hereby certify that Resolution No. 2878 is a full, true, and correct copy, and was duly adopted at a regular meeting of the Planning Commission of the City of Palm Desert on July 16, 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on July____, 2024. RICHARD D. CANNONE, AICP SECRETARY 130 PLANNING COMMISSION RESOLUTION NO. 2878 5 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 1 Nick Melloni From:Lorena Ritchey Sent:Tuesday, June 25, 2024 4:18 PM To:Nick Melloni; Carlos Flores Subject:FW: CCRP23-0023, Palm Desert Melanie Place (WCCC), 42650 Melanie Place - Closing Cannabis Business Operations Importance:High FYI Lorena Ritchey, CCEO Management Analyst City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 lritchey@palmdesert.gov | 760.776.6477 | www.palmdesert.gov From: Lorena Ritchey Sent: Tuesday, June 25, 2024 4:06 PM To: Kenneth Churchill <kenneth@westcoastcannabis.club> Cc: Richard Cannone <rcannone@palmdesert.gov>; James Bounds <jbounds@palmdesert.gov> Subject: CCRP23-0023, Palm Desert Melanie Place (WCCC), 42650 Melanie Place - Closing Cannabis Business Operations Importance: High Hi Ken, This is to recap our phone conversa<on this morning that you are officially closing your business, Palm Desert Melanie Place. The doors will officially close tomorrow, June 26, 2024. · Did not renew the State Cannabis License no. C12-0000119-LIC which expires June 27, 2024. o Microbusiness license: retail, cul<va<on, manufacturing, and distribu<on. · You will do your best to pay all outstanding debts, specifically any money due to the City Finance Department cannabis taxes. The business opera<on finance revenues have not been produc<ve. And the State taxes that must be paid are enormous and increasing. It’s challenging to make a profit when taxes must be paid to everyone. · Will be keeping the Cathedral City and Indio dispensary stores. · Will be liquida<ng the equipment, but it will take some <me. · The building owner passed away and the property is in a trust. The building was recently appraised at $6 million but will be challenging for anyone to pay that amount of money. The building will probably be vacant for a long <me. I’ve taken the liberty of including the Director of Development Services, Richard Cannone, and Finance Supervisor, James Bounds for their informa<on. Regarding the outstanding debt due to the City, please work with the Finance team. Please keep us apprised if something occurs at the loca<on that the City should be aware of while you vacate all property equipment inside the building. 151 2 It was a pleasure to work with you and your team! Thank you and all the best with your other two dispensary businesses. cc: File 152 153 154 155 156 157 158 CITY OF PALM DESERT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760-776-6483 PLANNING@PALMDESERT.GOV CITY OF PALM DESERT PUBLIC HEARING NOTICE CASE NO. CUP 17-0018 NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BEFORE THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, TO CONSIDER THE REVOCATION OF CONDITIONAL USE PERMIT 17-0018 FOR A CANNABIS FACILITY LOCATED AT 42-650 MELANIE PLACE The City of Palm Desert (City), in its capacity as the Lead Agency for this project and pursuant to the California Environmental Quality Act (CEQA), has determined the project to be exempt from further environmental review pursuant to Administrative Code, Title 14, Chapter 4, Section 15321, Class 21 – Enforcement Actions by Regulatory Agencies PROJECT LOCATION: 42-650 Melanie Place, Palm Desert (APN 634260012). PROJECT DESCRIPTION: The Planning Commission of the City of Palm Desert adopted Planning Commission Resolution Nos. 2742 and 2755 to adopt a notice of exemption pursuant to CEQA and approve CUP17-0018 for a cannabis facility at 42-650 Melanie Place. This CUP will be considered for revocation. The Planning Commission is authorized to revoke any conditional use permit approval as authorized by Section 25.72.050 of the Palm Desert Municipal Code. PUBLIC HEARING: NOTICE IS HEREBY GIVEN that the Planning Commission of the City of Palm Desert, California, will hold a Public Hearing at its meeting on July 16, 2024. The Planning Commission meeting begins at 6:00 p.m. in the Council Chamber at 73510 Fred Waring Drive, Palm Desert, California. Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person. Options for remote participation will be listed on the Posted Agenda for the meeting at https://www.palmdesert.gov/departments/city-manager-s-office/city-clerk/committee-calendar. PUBLIC REVIEW: The plans and related documents are available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. by contacting the project planner, Carlos Flores. Please submit written comments to the Planning Division. If any group challenges the action in court, 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 Planning Commission hearing. All comments and any questions should be directed to: Carlos Flores, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 776-6478 cflores@palmdesert.gov PUBLISH: THE DESERT SUN RICHARD D. CANNONE, AICP, SECRETARY JULY 5, 2024 PALM DESERT PLANNING COMMISSION 159 160 CITY OF PALM DESERT ATTENDANCE REPORT Advisory Body: Prepared By: Year Month Date 2 16 6 20 5 19 2 16 7 21 4 18 2 18 1 15 5 19 3 17 7 21 5 20 DeLuna, Nancy --P P P P P -P P P P -P P P P P P P --P -0 0 Greenwood, John --P E P P P -P P P E -P P P P P P P --P -2 0 Gregory, Ron --P P P P P -P P E P -P P P P P P E --P -2 0 Holt, Lindsay --P P E P E -P P P P -E E P P P P R --E -5 0 Pradetto, Joseph --P P P P P -P P P P -P P P P E E P --P -2 0 Palm Desert Municipal Code 2.34.010: P Present A Absent E Excused -No meeting R Remote Twice Monthly: Six unexcused absences from regular meetings in any twelve-month period shall constitute an automatic resignation of members holding office on boards that meet twice monthly. Total Unexcused Absences Jan Feb Mar Apr May Jun Jul Aug Sep 2023 2023 2023 2023 2023 Total Absences Oct Nov Dec PLANNING COMMISSION Niamh Ortega 2024 202420242024202420242024 161