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HomeMy WebLinkAbout2018-07-17 PC Regular Meeting Minutes CITY OF PALM DESERT REGULAR PALM DESERT PLANNING COMMISSION MEETING MINUTES TUESDAY, JULY 17, 2018 — 6:00 P.M. CIVIC CENTER COUNCIL CHAMBER 73-510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER Chairman Joseph Pradetto called the meeting to order at 6:00 p.m. II. ROLL CALL Present: Commissioner Lindsay Holt Commissioner John Greenwood Commissioner Nancy DeLuna Vice Chairman Ron Gregory Chairman Joseph Pradetto Staff Present: Robert Hargreaves, City Attorney Ryan Stendell, Director of Community Development Bo Chen, City Engineer Eric Ceja, Principal Planner Kevin Swartz, Associate Planner Nick Melloni, Assistant Planner Monica O'Reilly, Management Specialist II Justus Swajian, Community Development Intern III. PLEDGE OF ALLEGIANCE Commissioner Nancy DeLuna led the Pledge of Allegiance. IV. SUMMARY OF CITY COUNCIL ACTION Director of Community Development Ryan Stendell summarized pertinent July 12, 2018, City Council actions. MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 V. ORAL COMMUNICATIONS None VI. CONSENT CALENDAR A. MINUTES of the Regular Planning Commission meeting of June 19, 2018. Rec: Approve as presented. B. REQUEST FOR CONSIDERATION of a one-year time extension for Tentative Tract Map 33719 for the subdivision of 18+ acres into a 159 single-family home development located at the southwest corner of Portola Avenue and Frank Sinatra Drive. Case No. TTM 33719 (RJT Homes/Catavina, LLC., La Quinta, California, Applicant). Rec: By Minute Motion, approve a one-year time extension for Case No. TTM 33719 until July 28, 2019. Upon a motion by Commissioner Greenwood, second by Vice Chairman Gregory, and a 5-0 vote of the Planning Commission, the Consent Calendar was approved as presented (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). VII. CONSENT ITEMS HELD OVER Vill. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION to recommend approval to the City Council of a Mitigated Negative Declaration of Environmental Impact, a Specific Plan document, and Tentative Parcel Map 37234 to subdivide 32+ acres into four (4) parcels bounded by east of Monterey Avenue, south of Dick Kelly Drive, north of A Street and west of Gateway Drive. Case Nos. SP 16-342 and TPM 37234 (MC Properties, Westlake Village, California, Applicant). Commissioner DeLuna moved, by Minute Motion, to continue Case Nos. SP 16-342 and TPM 37234 to August 7, 2018. Motion was seconded by Vice Chairman Gregory and carried by a 4-0-1 vote (AYES: DeLuna, Gregory, Holt, and Pradetto; NOES: None; ABSTAINED: Greenwood). B. REQUEST FOR CONSIDERATION of approval of a Precise Plan of design and a Tentative Parcel Map (TPM) for two new, four-story hotels (Holiday Inn Express and Suites and a future hotel) on Parcel 5 within the Millennium Specific Plan located at 74-755 and 74-777 Technology Drive; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case Nos. PP 18-0002 and TPM 37488 (Prest Vuksic Architects, Palm Desert, California, Applicant). 2 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner John Greenwood stated he is employed by Prest Vuksic Architects, the applicant, and recused himself from this item. Vice Chairman Gregory also stated his landscape firm worked on the said project and recused himself. Associate Planner Kevin Swartz outlined the salient points from the staff report. (All staff reports are available at www.cityofpalmdesert.org). Staff recommended approval and offered to answer any questions. Commissioner DeLuna asked if the tower element in the center or the height of the entire building is 57 feet. Mr. Swartz responded that the tower in the center is 57 feet. Commissioner DeLuna asked how tall the building is. Mr. Swartz replied that the building is 48 to 52 feet. Commissioner DeLuna inquired if the HVAC equipment would be screened. Mr. Swartz replied that is correct. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. DAVID DRAKE, Prest Vuksic Architects, Palm Desert, California, offered to answer any questions. Commissioner DeLuna asked what the percentage of the massing is of the 57-foot tower. Mr. DRAKE responded that the massing is approximately 10 to 15 percent. Commissioner Lindsay Holt asked what changes would be necessary for the second phase in order for the project to come back to the Planning Commission. Mr. Swartz responded that the second phase would go back to the Planning Commission if there were configuration or site changes. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner DeLuna moved to waive further reading and adopt Planning Commission Resolution No. 2724, approving Case Nos. PP 18-0002 and TPM 37488, subject to the conditions of approval. Motion was seconded by Commissioner Holt and carried by 3- 0-2 vote (AYES: DeLuna, Holt, and Pradetto; NOES: None; ABSENT: Greenwood and Gregory). 3 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 C. REQUEST FOR CONSIDERATION of approval of a Precise Plan of design to modify the original entitlements for Lot 3 within the Villa Portofino to construct a new 161-unit active adult community instead of constructing a 161-unit skilled nursing facility located at 40-445 Portola Avenue and; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. PP 18-0004 (Avenida Partners, Newport Beach, California, Applicant). Vice Chairman Gregory stated he also worked on this project and recused himself. Mr. Swartz presented the staff report and recommended approval. Commissioner DeLuna asked if adjacent residents would have any concerns with the wall that is going to be constructed. Mr. Swartz responded that the applicant worked with the City's Architectural Review Commission and some of the neighbors on the design of the wall. Commissioner Greenwood referred to Lot 2 and asked if the circulation would be internally through the Villa Portofino access. Mr. Swartz replied that is correct. He explained that access would be through the gate on Country Club Drive. Commissioner Greenwood inquired if there is any concern with future access to the retention basin being landlocked. Mr. Swartz replied no. There is an easement that allows access to the retention basin. Commissioner Greenwood noted that the landscape stops at the property line, at the start of the front yard, and in the area from the front yard down to the adjacent development. For consistency purposes, he asked if there was any discussion regarding the landscaping south of the wall in front of the Coachella Valley Water District's (CVWD) well-site continuing down to the property line. Mr. Swartz responded there was no discussion. Commissioner Greenwood clarified that the southern access is strictly for the Fire Department. Mr. Swartz replied that is correct. Commissioner Greenwood noted that the project is two stories, he asked if there is any line of sight concerns. Mr. Swartz replied no. Chairman Pradetto inquired if there were any plans to underground the utilities. 4 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Mr. Swartz replied no and stated that they are large transmission lines. Commissioner Holt asked what is the use of the property to the north. Mr. Swartz replied the use is for 150 units for assisted living and memory care. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. MATTHEW MAY, Newport Beach, California, thanked the Planning Commission for considering their project. He offered to answer any questions. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner DeLuna commented that the proposed project will be a nice addition to the community. Commissioner Greenwood commented that the project is consistent with the previous development and supported the project as presented. He requested City staff work with the developers to see if something could be done with the southern portion of the landscaping in front of CVWD's well-site to create a continuous landscape theme. Commissioner Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2725, approving Case No. PP 18-0004, subject to the conditions of approval. Motion was seconded by Commissioner DeLuna and carried by 4-0-1 vote (AYES: DeLuna, Greenwood, Holt, and Pradetto; NOES: None; ABSENT: Gregory). Due to technical difficulties with the audio, Chairman Pradetto called a recess at 6:30 p.m. and he reconvened the meeting at 6:54 p.m. He noted that the attempts to repair the sound system failed. D. REQUEST FOR CONSIDERATION of approval for a 2,100-square-foot retail cannabis business (Earth Essentials) located at 73-345 Highway 111; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0006 (Lakeavia King and Earth Essentials, Thousand Palms, California, Applicant). Principal Planner Eric Ceja provided a brief history regarding the Adult Use of Marijuana Act (Proposition 64), City Council Ordinance No. 1329 adopting cannabis regulations, and the cannabis application process. Before moving forward with Case No. CUP 17-0006, Mr. Ceja offered to answer any questions. Vice Chairman Gregory inquired how many applications were rejected by the City. Mr. Ceja responded that the City received more than 33 cannabis applications. 5 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner DeLuna noted that a cannabis business must be 1,000 square feet away from youth centers. She asked if parks or a library is included in the 1,000- square-foot separation. Mr. Ceja replied parks and a library are not included in the separation requirement. Commissioner DeLuna asked if theoretically, a cannabis business could be next to a public park. Mr. Ceja communicated that the language in the ordinance states that a cannabis business cannot abut a public park. He noted that none of the cannabis applications being considered by the Planning Commission abut a park. Commissioner DeLuna commented that people could have six cannabis plants for personal use. She asked if the same odor restrictions for cannabis businesses apply for personal use. Mr. Ceja responded that the California law states, six plants could be grown indoor or outdoor of a residential property. He said the odor restrictions do not apply to residential properties. Mr. Ceja provided the staff report and noted that the applicant changed the name from Earth Essentials to Royal Highness. He also noted a public hearing notice was mailed out to all property owners within 300 feet in accordance with the City's ordinance. Staff did not receive any correspondence in favor or in opposition to the proposed use. He mentioned exterior signs must not contain a cannabis leaf or a green cross. At the end of his staff report, Mr. Ceja offered to answer any questions. He said the applicant is also available to answer questions. The applicant provided the Planning Commission with photo boards of the proposed dispensary. Commissioner Greenwood asked what are the proposed hours of operation. Mr. Ceja replied the hours of operation are 10:00 a.m. to 10:00 p.m. Commissioner Greenwood inquired how the applicant is going to address security concerns within the building when other adjacent businesses are closed. Mr. Ceja responded that the applicant is conditioned to provide exterior security cameras leading up to the location. The applicant has proposed to employ on-site security. Commissioner Greenwood asked if the on-site security will be inside or outside of the business. Mr. Ceja replied that security will be in the suite. If needed, security will patrol the common areas and the building exterior. 6 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner Greenwood voiced his concern with security. He noted that Presidents Plaza is going through a redesign and lighting will be looked at. He asked if lighting levels would improve as part of the improvements to Presidents Plaza. Mr. Stendell interjected that the west Presidents Plaza parking lot behind the proposed cannabis business is not part of the improvements. Commissioner Greenwood asked if City staff looked at the outside lighting levels at the southern end of the building. Mr. Ceja replied no. Commissioner Greenwood noted his concern with the location of the restroom. He pointed out that the restroom would be accessed at the back of the business going by product displays, the vault, the security office, etc. He asked if there was discussion regarding the location of the restroom. Mr. Ceja remarked that restrooms are required for customer use. He stated the applicant has revised their floor plan and customers will no longer be able to access the restrooms walking through secured areas. Commissioner Greenwood mentioned that the plan of the vault room indicates there is a standard construction wall; drywall on both sides. He asked if there are any concerns with the adjacent tenant because there is only a drywall wall between suites. He also asked if there should be an additional security guard(s) to secure the areas that have substantial product. Mr. Ceja responded that he is not aware of any other improvements to the wall. Commissioner Greenwood asked if there would be exterior video cameras pointing toward customers entering and exiting the proposed business. Mr. Ceja replied yes. He believed there will be a camera at the exterior entrance, which will be pointed at the main corridor. Vice Chairman Gregory inquired if the goods will be stored away and locked when the business closes for the evening to discourage burglaries. Mr. Ceja deferred the question to the applicant. Currently, cannabis is a cash business, Vice Chairman Gregory asked if customers could be a target before walking into the store and if it is a concern. Mr. Ceja replied that there will be on-site security monitoring activity in the store. Security can also monitor the building exterior. Chairman Pradetto asked Mr. Ceja if he knows of any safety violations at active dispensaries. 7 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Mr. Ceja answered that he is not aware of any violations at active dispensaries. Commissioner Holt commented that a customer could technically pay with a debit card at most dispensaries so cash will not always be a requirement for a purchase. Mr. Ceja noted that staff prepared a memorandum requesting if the Planning Commission votes in favor of granting a Conditional Use Permit (CUP) to a cannabis business that the Commission include the following condition recommended by the City Attorney: "In accepting this Conditional Use Permit 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 Palm Desert 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." In regard to odor control and a mechanical system on the roof, Commissioner Greenwood asked if staff would consider, as part of the review process, to have the City monitor the system to make sure odors do not exhaust to adjacent spaces. Mr. Ceja noted that there is a Condition of Approval in the resolution in which City staff will visit the business on an ongoing basis. If odor issues arise, the applicant would be required to mitigate the odors. Commissioner Holt believed that cannabis products now have to be prepackaged before being delivered to a dispensary. As a result, there will be fewer odors escaping from a dispensary. She asked if the City considered establishing programs that are specifically funded by taxes received from cannabis-related businesses. Mr. Stendell replied that the City did consider taxes for cannabis businesses; however, not specific allocations. He said the City Council recently adopted a measure for the November 2018 ballot asking qualified voters to establish a tax on cannabis businesses. Tax allocations would be used broadly and not allocated to specific programs. Commissioner Holt asked what the proposed tax structure is. Mr. Stendell answered up to 15 percent on retail sales; however, staff's recommendation for a starting point is 10 percent. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. 8 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 MS. MEGAN STONE, Co-owner of Royal Highness, Palm Desert, California, thanked the City for undertaking the pathway for legal cannabis sales in Palm Desert and patience in the application process. She stated that security is very important and critical to them since the majority of their business is an all cash business. She communicated that they will have a security guard on staff during business hours and the guard will be mostly inside the dispensary. The security guard's main job will be monitoring the main entrance and will be the first one communicating with the customer. A separate entry and exit are also provided to help security staff to monitor customer activity. She mentioned they are actively talking to the landlord about making sure the first and second-floor exterior corridors are well lit. She assured the Commission that their interior lighting is on point. She believed they will have over two dozen security cameras inside and outside of the proposed dispensary. She noted that the security cameras are of a higher caliber than required for the CUP application. As mentioned in their security procedures, the last person to leave the dispensary for the night would be escorted out by the security guard to make sure they make it to their car safely. She briefly listed additional security measures that would be taken at the dispensary. She mentioned products will be locked up in the vault and not in the showroom when the business is closed. In addition, products would be prepackaged by a licensed distributor, which helps mitigate odor. Lastly, she listed measures they would take to mitigate odors, such as the use of ozone generators. Commissioner Greenwood asked the applicant to address the standard construction wall shared with the adjacent tenant. MS. STONE responded that not only were they able to revise the floor plan to provide a different access to the restroom, but it also gave them the opportunity to move the vault to an all interior wall. Therefore,the vault is not on a shared standard construction wall. Commissioner Greenwood inquired if a security system call would go to a security dispatch center or directly to the police department. MS. STONE replied that their security system is programmed with Desert Alarm. However, she deferred the question to her business partner. MS. LAKEAVIA KING, Thousand Palms, California, stated that they are able to monitor the exterior of the building and that they are taking precautions to ensure customer and employee safety. Commissioner DeLuna inquired why the applicant needs to be open until 10:00 p.m. MS. STONE responded that they would like to be open within the guidelines allowed by the City. She commented that there are a lot of workers in the hospitality industry in the Coachella Valley that do not work the typical 9:00 a.m. to 5:00 p.m. shift. They want to be able to serve as many customers as possible. She said they anticipate hours may change on Sundays or during the slower summer months. 9 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner DeLuna asked what are the hours of operation of the adjacent businesses. Mr. Ceja responded that there are some restaurants in the area that are open late. Most of the offices in the building close by 6:00 p.m. Commissioner DeLuna pointed out that issues with security usually happen late at night. Mr. Ceja noted that Fresh Agave restaurant, which is adjacent to the building is open late and other restaurants on Lupine Lane. He said the City will welcome other businesses to stay open late as part of the City's Center Plan that would connect Highway 111 and San Pablo Avenue. Commissioner Greenwood asked the applicant what their discussion has been with the building owner regarding site lighting. MS. KING responded that she has been working with the owner for the past year and that lighting levels will be improved where needed to ensure safety for the customers and other tenants. Commissioner Greenwood inquired if the building owner would be upgrading any of the parking lot lighting. MS. KING replied that they have not discussed parking lot lighting. Commissioner Holt commented that if an applicant is granted a permit to operate a cannabis business in Palm Desert, the applicant should be able to receive their state license. She asked how much time an applicant has to open their business. Mr. Ceja responded that a CUP is valid for a year. So long as the applicant provides proof of a state-issued cannabis license the CUP will remain valid. Commissioner Holt asked if a CUP for a cannabis business became available, would staff reopen the application process. Mr. Ceja replied that City staff went through an extensive review process to prioritize the applications, which they felt would fit into the City of Palm Desert. He said he does not anticipate any of the current applicants having an issue receiving a state license. Commissioner Holt asked if all the applications were reviewed in-house by staff. Mr. Ceja replied yes. It was noted that background checks were done by an outside company. Vice Chairman Gregory inquired if stores are allowed to sell other items that are not cannabis products, for example, T-shirts. 10 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Mr. Ceja replied yes. They are treated like any other retail business. Commissioner DeLuna asked if other products will be sold such as brownies, cookies, etc. Mr. Ceja responded that he believed there will be edibles on-site, which would also be prepackaged. Commissioner DeLuna asked if edibles fall under a different type of retail use. Mr. Ceja replied no. Commissioner Holt clarified that consumption is not allowed on-site. Mr. Ceja replied that is correct. Commissioner DeLuna clarified that edibles would be prepackaged and no baking will be done on the premises. MS. STONE replied that is correct. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner DeLuna commented that the Commission has several cannabis applications to consider, which address issues with security and odor control measures. For purposes of uniformity, she provided a list to be standardized and suggested that it is incorporated into the CUP so all the applicants operate under the same standards and requirements. Following is the list for security: 1) a check-in desk; 2) security cameras; 3) alarm systems with motion sensors; 4) on-site security staff; and 5) limited access to storage areas. Following is the list for odor control: 1) prepackage all cannabis products; 2) seal air door curtains; 3) use carbon filters and scrubbers; 4) use odor neutralizers; 5) use air purifiers; 6) use negative air pressure; 7) use ozone generators; 8) use air conditioner filters to include HEPA and charcoal filters; 9) use UV light generators inside the ducts to neutralize odors; and 10) use Phresh duct silencers. She added cultivation operators need to freeze all cannabis plants. Vice Chairman Gregory commented that the minimum requirements are standardized within themselves and every applicant needs to meet the standards. If an applicant wants to offer more than the standard, it is their business. He said the businesses are going to compete with one another, and if one store offers more than the other, it is something they want to do. Commissioner DeLuna responded that might apply to the security measures; however, people are not going to compete for odor control to get more customers. 11 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Vice Chairman Gregory interjected that the applicants already need to meet the required guidelines. He felt the minimum requirements should be enough. It was stated that there is zero tolerance for odor. Commissioner DeLuna made clear that she did not suggest that the list had to be Conditions of Approval. She wanted to provide the list for the record so there are uniformity and standardization. Mr. Stendell remarked that staff could be directed to keep a database of proposed security and odor measures that will be helpful for existing and future applicants. City Attorney Bob Hargreaves noted that there is one condition that makes it explicit that applicants will be subjected to further rules the City enacts. It is going to be somewhat of an adapted management process, so if issues arise that have not been ingested into the CUP, the City will impose additional rules. Chairman Pradetto commented that he does not know enough about the cannabis industry or the technologies; therefore, Commissioner Del-una's list might become obsolete in two months based on the amount of money and the incentives involved with cannabis businesses. Commissioner Holt said it is difficult when you are looking at new construction versus someone that is retrofitting an existing building for a cannabis business. She stated that technologies are changing constantly in regard to odor mitigation. She added that the City would have to rely on Code Compliance officers to help resolve odor complaints. Commissioner Greenwood asked if adding a condition is necessary for the lighting levels to meet the standard commercial minimums due to the age of the southern parking lot. The Commission agreed, stating lighting levels must meet the standard commercial minimums. Commissioner Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2726, approving Case No. CUP 17-0006 as presented, with the addition of the following conditions to the Conditions of Approval: 1) add the City Attorney's condition as mentioned above; and 2) lighting standards on the south end of the project site must meet the City's commercial minimum requirements. Motion was seconded by Vice Chairman Gregory and carried by 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). E. REQUEST FOR CONSIDERATION of approval for a 2,500-square-foot retail cannabis business for Michael Nguyen and Art District Management located at 72- 180 Highway 111; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0019 (Michael Nguyen, Monterey Park, California, Applicant). 12 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 179 2018 Mr. Ceja presented the staff report. He noted the City received a letter from the City of Rancho Mirage and an adjacent neighbor opposing the proposed project. He briefly went over and addressed concerns made by Rancho Mirage. As stated in the previous cannabis application, Mr. Ceja said the Planning Commission must include the City Attorney's condition. Commissioner DeLuna inquired how often the City would inspect cannabis businesses. Since cannabis is new to the City, Mr. Ceja replied that staff does not know. He said the Code Compliance Division is very proactive. Mr. Stendell anticipates that Code Compliance officers will inspect cannabis businesses once a week in the beginning, then transition to monthly inspections, and if successful, by a complaint basis. Commissioner DeLuna asked if there will be any type of notification for the adjacent neighbors letting them know who to call if there are odor issues. Mr. Stendell replied yes. He said there will be a handout with the City's information. Vice Chairman Gregory asked if homes are within 90 feet of a cannabis facility that is not in Rancho Mirage but the homes are in Palm Desert, how would the City's ordinance affect the proximity. Mr. Ceja explained that the City's ordinance states cannabis businesses cannot abut a residence. There is no separation requirement from residences in the City's ordinance. Commissioner Holt asked how close is the proposed project from the nearest adjacent resident. Mr. Ceja responded approximately 80 feet. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. MICHAEL NGUYEN, Applicant, Palm Desert, California, stated that he currently has a cannabis business in downtown Los Angeles. He mentioned their business in Los Angeles is open from 10:00 a.m. to 10:00 p.m. and have not had any problems. They also have a 24-hour security guard, with two guards inside and two guards outside. Chairman Pradetto asked Mr. Nguyen how long they have been open in Los Angeles. MR. NGUYEN replied that they have been open for two years. 13 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner Greenwood asked the applicant to explain the function of the floor plan, and asked if there are any issues with access to the restroom. MR. NGUYEN replied that at their Los Angeles location, they do not allow customers access to the restrooms. Commissioner Greenwood clarified that the restroom at the proposed location is directly accessible to the dispensary. MR. NGUYEN replied yes. Commissioner Greenwood asked if a customer has to wait until they are called back. MR. NGUYEN replied yes. Commissioner Greenwood asked the applicant if they had any security concerns being next to the wash. MR. NGUYEN responded that they have security cameras that are well lit. In regard to the storage, Commissioner Greenwood asked if there are any specific measures being taken to make sure the construction of the exterior wall is well protected. MR. NGUYEN responded that the exterior wall will be redone for added protection and to prevent someone from cutting through the wall to access the safe or product. Commissioner DeLuna asked what is the average length of time a customer is in the waiting area before they are taken into the retail area. MR. NGUYEN responded that the average length of time is 10 minutes. Commissioner DeLuna asked how many customers are allowed in the retail area. MR. NGUYEN responded that they will have a 1:1 employee to customer ratio. Commissioner Greenwood inquired if an analysis was done on the exterior lighting. MR. NGUYEN replied that they plan on increasing the exterior lighting to have more visibility at night. Chairman Pradetto asked staff if an applicant is getting a CUP to operate a business, does the applicant automatically have to comply with the City's lighting standards. Mr. Stendell responded that the City's lighting standards and outdoor lighting ordinance do not state how much something has to be lit. If the Commission were to propose a condition, the Commission could recommend that lighting be consistent with the City's outdoor lighting requirements for security. 14 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner Holt inquired if the applicant is proposing additional signage. MR. NGUYEN replied no. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner DeLuna felt that the proposed location is more suitable because the location is isolated and separated from residential areas, which eliminates many concerns. Commissioner Holt agreed, stating there should not be any concerns from residents. Commissioner DeLuna inquired if someone could access the business from behind the building through the storm channel. Mr. Ceja believed the storm channel is lined with concrete and there is landscaping. He does not believe there is fencing to keep someone from trespassing. Mr. Stendell noted that the building is not adjacent to the storm channel. Commissioner Holt commented she has seen police officers in the storm channel patrolling the area. Commissioner Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2727, approving Case No. CUP 17-0019 as presented, with the addition of the following conditions to the Conditions of Approval: 1) add the City Attorney's condition as mentioned above; and 2) site lighting must be reviewed by staff and meet the commercial minimum requirements in regard to security. Motion was seconded by Vice Chairman Gregory and carried by 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). F. REQUEST FOR CONSIDERATION of approval for an 8,000-square-foot retail cannabis business for The Leaf located at 73-740 El Paseo; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0023(The Leaf, Palm Desert, California, Applicant). Mr. Ceja reviewed the staff report. He pointed out that the proposed project will include an extensive exterior renovation to the building along El Paseo and Presidents Plaza. The project was reviewed and approved by the Architectural Review Commission (ARC). He mentioned the applicant will participate in community events and donate a percentage of their profits to local nonprofit organizations. He noted that the City did not receive correspondence in favor or opposing the proposed project. At the end of the staff report, Mr. Ceja showed a video that was prepared by the applicant. Due to the location, Commissioner DeLuna inquired if there are any extra measures for odor control to ensure the City's Code Compliance Division does not receive complaints. 15 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Mr. Ceja responded that the products will be prepackaged and the applicant is proposing the same odor controls as other cannabis businesses. Commissioner DeLuna asked if HEPA filters are standard. Mr. Ceja replied yes. Commissioner Greenwood inquired if the north parking lot of Presidents Plaza is part of the City's future improvements. Mr. Stendell replied yes. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. ROB BERNHEIMER, Representative for The Leaf, Indian Wells, California, commented that City staff has done an amazing job to get them to this point. He said The Leaf is a special project formed by Mr. R.D. Hubbard, who wanted to build a dispensary like no other in California or in the United States. He noted that the general manager for The Leaf and other members of their team are available to answer any questions. In regard to odors coming from a dispensary is a thing of the past. He explained that state law changed, in which products have to be prepackaged and in child-resistant containers as of July 1, 2018. He voiced that nothing can be packaged or repackaged at a retail dispensary. The prepacking has to be done by a distributor, cultivator, or manufacturer. He thanked the Planning Commission for their time and consideration. He offered to answer any questions. Commissioner DeLuna asked if there will be edibles. MR. BERNHEIMER replied there will be edibles and all edibles will be prepackaged. Commissioner DeLuna asked when the goods would be delivered. MR. BERNHEIMER deferred the questions to the general manager. MR. PAUL COTTERELL, General Manager for The Leaf, Palm Desert, California, stated goods would be delivered during store hours. Commissioner DeLuna asked if deliveries will be made while customers are present. MR. COTTERELL replied that they will have a delivery door specifically for delivery drivers only. Commissioner Greenwood inquired if access to the basement for staff only. MR. COTTERELL responded that there will be limited access to the basement with supervision for security purposes. 16 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Vice Chairman Gregory commented that he has heard about cannabis deliveries, and asked if it is similar to ordering a pizza. MR. COTTERELL answered that cannabis deliveries are very similar to ordering pizza. Commissioner DeLuna asked the applicant if they have a system set up where someone can call in an order and the product will be delivered to their home, or would they have to pick up their order at the store. MR. COTTERELL responded that they will only be set up for will call. MR. BERNHEIMER added that there are extensive and strict state regulations for delivery of cannabis. Commissioner DeLuna asked if the products are refrigerated and stored. MR. BERNHEIMER replied that it depends on the product. Commissioner DeLuna asked if the edibles are refrigerated. MR. BERNHEIMER replied some of the edibles are refrigerated and some are not. Commissioner Holt inquired if it has been difficult getting inventory due to new regulations that went into effect July 1, 2018. MR. BERNHEIMER replied yes. Commissioner Holt asked if getting inventory will become an issue. MR. COTTERELL responded that there will be more companies that will go online. Since July 1, companies have emerged with the new policies and regulations in place. MR. BERNHEIMER commented that there has been a backlog in the testing labs for cannabis. He noted there were also testing requirements that went into effect July 1. Commissioner Holt asked the applicant when they will open the dispensary. MR. BERNHEIMER said if the Planning Commission approves the CUP, their goal is to be opened by the end of the year. Commissioner DeLuna asked if there are requirements for THC (tetrahydrocannabinol) levels in cannabis. MR. BERNHEIMER replied that the State of California regulates the levels of THC. He stated the manufacturers have to follow the regulations before the products are delivered to the dispensaries. 17 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner Greenwood asked if there will be security cameras on the north and south exteriors of the building. MR. BERNHEIMER replied yes. He communicated that state law requires security cameras on the exterior and interior of a cannabis business. He mentioned he understood the Riverside County Sheriff's Department is not working with cannabis businesses. Commissioner DeLuna asked if there is an issue at a cannabis business and a call is placed, does the call go to the City's Code Compliance Division. MR. BERNHEIMER responded that if it is an emergency, a call would be made to 911. Commissioner DeLuna clarified that the Sheriff's Department will get involved if there is an emergency. MR. BERNHEIMER replied that is correct. MS. EDNA CARLSON, Owner of Pete Carlson's Golf & Tennis, Palm Desert, California, voiced her concern with security in the parking lot, odors coming from The Leaf, customers opening the prepackaged products and consuming cannabis in the parking lot or behind a wall, and safety for her customers and employees. She asked if there will be security in the parking lot. If there is an issue, who does she contact? She stated she would like to see the plans the applicant provided the City. She also stated the parking lot is very dark and asked if lighting will improve. Chairman Pradetto communicated that long-term improvements planned for Presidents Plaza will help with some of Ms. Carlson's concerns. MR. BERNHEIMER thanked Ms. Carlson for sharing her concerns. He said one of The Leaf coordinators will provide Ms. Carlson with their contact information so she can call them if there are any concerns. He noted plans are on file with the City. He said if their security sees activity outside that is of concern, security will take care of the problem. He felt security will improve in the parking lot and surrounding area because there will be security cameras and security guards. He said it is going to be hard to control what people do once they leave The Leaf. He made clear that it is illegal for a person to consume cannabis in public and a violation of state law and the City's ordinance. Mr. Bernheimer indicated a lighting photometric study was done outside of the building; however, the parking lot was not part of the study. Commissioner DeLuna asked how many security guards will be on the property. MR. BERNHEIMER replied there will be two security guards on site. At the time the product(s) are being purchased, Vice Chairman Gregory asked if customers are advised that the product(s) are not to be opened when exiting the store. He also asked if there is a way to warn customers that they could inadvertently break the law. 18 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 MR. BERNHEIMER responded that it is similar to having an open container such as leaving the liquor store and opening a can of beer. He said they could possibly provide signage. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner Greenwood commented that The Leaf is a very impressive project and something he would expect to see on El Paseo. Vice Chairman Gregory moved to waive further reading and adopt Planning Commission Resolution No. 2728, approving Case No. CUP 17-0023 as presented, with the addition of the following condition to the Conditions of Approval: 1) add the City Attorney's condition as mentioned above. Motion was seconded by Commissioner Greenwood and carried by 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). Chairman Pradetto called a recess at 8:46 p.m. and reconvened the meeting at 8:51 p.m. G. REQUEST FOR CONSIDERATION of approval for a 1,700-square-foot adult use and medicinal retail cannabis business for Palm Royale Collective located at 75- 048 Gerald Ford Drive; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0026 (Palm Royale Collective, La Quinta, California, Applicant). Mr. Ceja outlined the salient points in the staff report. He noted that the City received a letter in opposition to the proposed project from Kaiser Permanente ("Kaiser"). Kaiser indicated in the letter that they provide services for addiction. They felt there would be a negative impact to have a retail cannabis dispensary in close proximity to their medical offices. He concluded the staff report and offered to answer any questions. Commissioner DeLuna asked what the proximity is from California State University San Bernardino (CSUSB) to the proposed project. Mr. Ceja replied that the proximity to the existing buildings is approximately a quarter of a mile. Commissioner Greenwood commented that he is not familiar with state laws. He inquired if it is a requirement to have a separation between the front lobby and the dispensary. Mr. Ceja responded no. Commissioner Greenwood mentioned he has the same concern regarding access to the restrooms. He asked if there were any discussions with the applicant about the access. Mr. Ceja replied no. 19 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Commissioner DeLuna noted she is concerned with issues raised by Kaiser. She felt a dispensary is different from a bar that provides alcohol. Chairman Pradetto noted that the letter from Kaiser mentioned "sensitive use." He looked through the ordinance and he could not find provisions for sensitive use and asked if he missed something. Mr. Ceja remarked that the City's ordinance complies with state laws, which a cannabis business must be 1,000 square feet from schools, daycares, or youth centers. In regard to sensitive use, staff evaluated the 35 applications to check if a cannabis business was within 1,000 square feet of a church. However, State law does not state a cannabis operation cannot be near a church. He stated staff considered a church as sensitive use, and staff considered Kaiser as a sensitive use as part of the evaluation of the applications. Chairman Pradetto clarified that City staff used sensitive use as a part of their decision evaluating applications, but it was not a decision similar to schools. Mr. Ceja replied that is correct. Chairman Pradetto declared the public hearing open and invited pub►ic testimony FAVORING or OPPOSING this matter. MR. DON and LISA KATHLEEN ZORNES, Applicants for Palm Royale Collective, Palm Desert, California, introduced themselves. MR. CHRIS CRANFIELD, Consultant for Palm Royale Collective, La Quinta, California, pointed out that Kaiser did not have an understanding of the Community Relations Plan provided by Palm Royale Collective. He indicated that they plan on donating 2 percent of their profits to surrounding programs such as Find Food Bank, Coachella Valley Rescue Mission, and Nurses for Safe Access. He mentioned he has seen cannabis help people with health issues and maintain a quality of life. Commissioner DeLuna inquired if the applicant reached out to Kaiser. MR. ZORNES responded that he reached out to Kaiser in December of 2017 and he did not receive a response. He mentioned they introduced themselves to surrounding businesses. Chairman Pradetto made clear that the applicant did not have a direct conversation with Kaiser. MR. ZORNES replied that they reached out to them, but they were not successful. Commissioner DeLuna commented she is not sure how they could mitigate the distance from Kaiser to the proposed project. 20 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 MR. CRANFIELD asserted that a sensitive use is not in the City's ordinance;therefore, the distance of the cannabis business to Kaiser should not be used against the applicant. He pointed out that Kaiser is not a rehab facility or a Betty Ford Center. He stated Kaiser is mainly a healthcare organization. Mr. Cranfield briefly spoke in favor of the proposed project. MR. JOHN MICH, Senior Public Affairs Representative for Kaiser, Palm Desert, California, mentioned Kaiser provided correspondence in opposition to the proposed project. For the record, he stated they are present to verbally reiterate they are in opposition to the cannabis business being in close proximity to their medical office building. Kaiser is in opposition because they operate an addiction medicine program and have concerns with safety. MS. SUSAN BROCK, Director of Ambulatory Services for Kaiser, Palm Desert, California, commented that their addiction program helps their members gain sobriety. Additionally, Kaiser has a large pediatric department and the proposed business would be too close to their front entrance. MRS. ZORNES shared that she recently lost a relative to opioid addiction. She stated she was surprised hospitals deny patients from healthy alternatives. She also shared she was in a car accident and the doctors prescribed opioid pain medication. However, she did not like the way they made her feel and she did not want to through the dangers of prescribed opioids. Her experience with prescribed opioids led her to discover the medical properties of cannabis, which helped her fight pain without the adverse side effects of opioids. As a result, she is inspired to spread the word and motivated to open a dispensary in Palm Desert. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner Holt asked who is responsible for ensuring donations are made as, indicated in the Community Relations Plan. Mr. Ceja responded that during the annual renewal of a City Business License, staff will need to review that information. Since the conditions of the project require the applicant to conform with the plans on file and the proposed donations are part of the file, staff will see them. Vice Chairman Gregory hoped that the applicant and Kaiser could come to an agreement. Commissioner Greenwood requested that the applicant looks at the floor plan design to make sure there are no functional issues with taking customers to the back of the dispensary, for example, as access to the restrooms. 21 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Chairman Pradetto moved, by Minute Motion, to continue Case No. CUP 17-0026 to August 7, 2018, and requested that the applicant and Kaiser meet and come to some agreement regarding the proposed project. Motion was seconded by Commissioner DeLuna and carried by a 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). H. REQUEST FOR CONSIDERATION of approval of a 6,000-square-foot cannabis manufacturing business for Cultivation Technologies, Incorporated located at 73- 818 Dinah Shore Drive; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0033 (Cultivation Technologies, Inc., Irvine, California, Applicant). Commissioner Greenwood interjected that Prest Vuksic Architects worked on the proposed project. Since he is an employee of the architectural firm, he recused himself. Mr. Ceja reviewed the staff report and offered to answer any questions. Commissioner DeLuna inquired if the building is shared with another tenant. Mr. Ceja replied yes. Commissioner DeLuna asked if the other tenant opposed the proposed project. Mr. Ceja replied no. Vice Chairman Gregory commented that this is a case where odor control is really going to matter. He would like to hear from the applicant regarding odor control. Commissioner Holt stated that there will be an odor. She said it will depend on how sensitive the adjacent tenant is to the odor. She commented she does not see how odors from a cannabis manufacturer could be completely mitigated. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. ROB BERNHEIMER, Representative for Cultivation Technologies, Inc., Indian Wells, California, stated he is a member of the board of directors and counsel for Cultivation Technologies, Inc. (CTI). He shared Ricard Probst, one of the founders of the company, is also present. Mr. Bernheimer noted that they have another manufacturing facility in Coachella. He briefly described their operations in Coachella. He indicated that as part of the manufacturing process, it is key to get the product frozen as quickly as possible. CTI has a freezer truck that picks up the product and the product is frozen before it gets to their facility. Once the product arrives at the facility, the product is packed into tubes that go through the manufacturing process and into the freezer. He said Mr. Probst will address odor control. 22 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 MR. RICHARD PROBST, Cofounder of CTI, Coachella, California, explained that they will be using negative air pressure, which will exhaust air out of the building that is already filtered so there is no smell in the air. He said the HVAC systems have handlers to control odors. He noted the rooms that would smell in the building; the freezer room and the room where they pack the tubes. Additionally, he noted their product is picked up and delivered to their customers. Commissioner DeLuna asked if brownies are baked at the applicant's facility. MR. PROBST replied no. He stated they do not have any plans for kitchen facilities. MR. BERNHEIMER explained that customers buy the cannabis extract used for brownies (or other edibles). He made clear that they will not bake goods on the proposed project. Commissioner DeLuna asked how the cannabis is extracted. MR. PROBST responded that the cannabis is extracted in a form of oil or distillate. He briefly explained the process. Commissioner DeLuna inquired if the cannabis is frozen at the time it is extracted. MR. PROBST replied yes. Commissioner DeLuna asked if the extraction process is odor free. MR. PROBST replied yes. Commissioner DeLuna inquired how much cannabis would be produced. At the proposed facility, MR. PROBST responded that they are expecting to process approximately 10,000 pounds. Commissioner DeLuna asked if there are other tenants in close proximity to the proposed project. MR. BERNHEIMER responded that the proposed project is located in an industrial area and there are other tenants. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Vice Chairman Gregory commented that his biggest concern with the project was odor; however, he felt the issue has been addressed by the applicant. As stated in the Conditions of Approval, the applicant must mitigate any odors or they will be shut down. 23 MINUTES REGULAR PLANNING COMMISSION MEETING JULY 17, 2018 Vice Chairman Gregory moved to waive further reading and adopt Planning Commission Resolution No. 2730, approving Case No. CUP 17-0033 as presented, with the addition of the following condition to the Conditions of Approval: 1) add the City Attorney's condition as mentioned above. Motion was seconded by Chairman Pradetto and carried by 4-0-1 vote (AYES: DeLuna, Gregory, Holt, and Pradetto; NOES: None; ABSENT: Greenwood). IX. MISCELLANEOUS X. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION None X1. COMMENTS None XII. ADJOURNMENT With the Planning Commission concurrence, Chairman Pradetto adjourned the meeting at 9:36 p.m. S H PRADETTO, CHAIRMAN ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION MONICA O'REILLY, RECORD - G SECRETARY 24