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Home My WebLink About11/15/2017 - STAFF REPORTS ?ALMsp9 iy c V N °°ro•« °' CITY COUNCIL STAFF REPORT col I FO RN�4 DATE: November 15, 2017 PUBLIC HEARING SUBJECT: INTRODUCTION OF AN ORDINANCE TO AMEND THE PALM SPRINGS ZONING CODE (PSZC) RELATIVE TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS FOR COMMERCIAL MEDICAL AND ADULT-USE CANNABIS FACILITIES (CASE 5.1218-F ZTA), AND ADOPTION OF IDENTICAL INTERIM URGENCY ORDINANCE (4/5U15 Vote Required) FROM: David H. Ready, City Manager BY: Department of Planning Services SUMMARY This is a request to amend the Palm Springs Zoning Code (PSZC) to establish zoning requirements for Adult-Use Cannabis Facilities and to make minor modifications to the requirements for Medical Cannabis Facilities. The ordinance proposes the following: • Establish zoning districts where Adult-Use Cannabis Facilities may be located; • Institute and maintain separation distance requirements between individual dispensaries; • Institute separation distance requirements for cultivation uses from protected uses and residential zones; • Require Conditional Use Permit approval for all cultivation, manufacturing, and testing uses; • Require architectural review of storefronts and signage for all Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries; and • Establish the Cannabis Lounge use for the on-site consumption of cannabis products. An interim urgency ordinance is also requested to address the time-urgency of the City's need for the recommended provisions. RECOMMENDATION: 1) Open the Public Hearing and receive public testimony. 2) Waive the reading of text in its entirety, read by title only, and introduce for first reading Ordinance No. AN ORDINANCE OF THE CITY OF PALM REM �N0. — City Council Staff Report November 15, 2017-- Page 2 Cannabis Zoning Ordinance, Interim Urgency Ordinance SPRINGS, CALIFORNIA, AMENDING CHAPTERS 91, 92, AND 93 OF THE PALM SPRINGS ZONING CODE RELATIVE TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS FOR COMMERCIAL MEDICAL AND ADULT-USE CANNABIS FACILITIES. 3) Waive the reading of the text in its entirety, read by title only, and adopt Ordinance No. , AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTERS 91, 92, AND 93 OF THE PALM SPRINGS ZONING CODE RELATIVE TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS FOR COMMERCIAL MEDICAL AND ADULT-USE CANNABIS FACILITIES (4/5ths VOTE REQUIRED). BACKGROUND INFORMATION: Relaferf f ele rant Pi .Actior►s` ',;3 - '` �� ' ,,` ,,` i g''s � The City Council adopted Ordinance No. 1758, which established 03/04/09 zoning requirements for Medical Cannabis Cooperatives and Collectives. 02/03/10 The City Council adopted Ordinance No. 1766, modifying zoning requirements for Medical Cannabis Cooperatives and Collectives. The City Council adopted Ordinance No. 1845, revising the permitting 03/05/14 requirements for Medical Cannabis Cooperatives and Collectives, and increasing the number of permitted facilities. The City Council adopted Ordinance No. 1876, establishing locational 05/20/15 standards for Medical Cannabis Cultivation Facilities and expanding the zoning districts where Medical Cannabis Cooperatives and Collectives are permitted. The City Council adopted Ordinance No. 1908, establishing zoning 12/14/16 requirements for Medical Cannabis Dispensaries, Medical Cannabis Manufacturing Facilities, Medical Cannabis Testing Facilities, and allowing certain medical cannabis uses in the E-1 zone 03/01/17 The City Council adopted Ordinance No. 1916, establishing separation distance re uirements between Medical Cannabis Dispensaries. The City Council adopted Ordinance No. 1933, amending the 07/26/17 Municipal Code to add permitting requirements for Adult Use Cannabis-related businesses and making minor modifications to the re uirements for Medical Cannabis businesses. The Planning Commission reviewed a proposed draft of the ordinance 10/11/17 at a public hearing and recommended approval to the City Council, subject to revisions of the draft proposal. A public hearing for consideration of the ordinance was scheduled by 10/18/17 the City Council; the Council voted to continue the item to a future date to allow additional input for stakeholders. 02 City Council Staff Report November 15, 2017-- Page 3 Cannabis Zoning Ordinance, Interim Urgency Ordinance Related Relevant Ci_ Actions �. The City Council subcommittee held a meeting with stakeholders and took public input on the draft ordinance. The Council subcommittee 10/31/17 considered the comments from the Planning Commission and stakeholders, and provided direction to staff for modifications to the draft ordinance. On June 27, 2017, Governor Brown signed into law the Medical and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") which consisted of legislation (SB94) intended to provide a comprehensive regulatory framework for the licensing, control, and taxation of medical and adult-use cannabis related businesses in California. MAUCRSA expressly protects a City's local licensing practices and zoning authority, and allows local governments to enact ordinances relative to allowing or prohibiting cannabis-related businesses and activities. The act also requires compliance with any and all local requirements for cannabis-related operations as a condition of state licensure. In response to the adoption of MAUCRSA, the City Council adopted Ordinance No. 1933 on July 26, 2017, which made amendments to Chapter 5.45 of the Palm Springs Municipal Code (PSMC) relative to Medical Cannabis-related business activities, and established Chapter 5.55 for the regulation of Adult Use Cannabis Facilities. With the adoption of business regulations for Adult Use Cannabis Facilities, zoning regulations must also be established to provide locational standards and development requirements for the uses. ANALYSIS: The City Council has directed staff to prepare a Zone Text Amendment to establish zoning requirements for Adult-Use Cannabis Facilities, consistent with the permitting requirements that are already in place. The City Council Cannabis Subcommittee specifically requested staff to incorporate the following elements, based on input received from the Planning Commission and stakeholders: • Determine zoning districts where Adult Use Cannabis Facilities may be located; • Consider allowing dispensaries in the CBD (Central Business District) zone, but institute a greater separation distance requirement and limit the square footage at the street level similar to the limitations placed on office uses; • Allow dispensaries in the C-1 (Retail Business Zone) district; • Require architectural review for dispensary storefronts as a means to ascertain that the businesses will conform to the City's architectural review criteria; and • Recommend standards for allowing on-site consumption of cannabis products. The following discussion addresses the proposed changes and additions to the zoning regulations pertaining to cannabis-related businesses. �. .. 03 City Council Staff Report November 15, 2017 -- Page 4 Cannabis Zoning Ordinance, Interim Urgency Ordinance 1. New Cannabis-Related Use Cateqories — Proposed Zoning Districts: Based on the permit categories created under MAUCRSA and included in Chapters 5.45 and 5.55 of the Municipal Code, the following uses would be added to the Zoning Code: • Adult Use Cannabis Dispensary • Adult Use Cannabis Cultivation Facility • Adult Use Cannabis Manufacturing Facility • Adult Use Cannabis Testing Facility • Adult Use Cannabis Transportation and Distribution Facility • Medical Use Cannabis Transportation and Distribution Facility • Cannabis Lounge Facility The table below identifies the zoning districts where the new cannabis-related uses would be permitted: Table 1: ZoningDistricts Use CBD C-1 C-2 HC C-M M-1 M-1 M-2 E-I A Cannabis Loun e CUP CUP CUP CUP CUP CUP CUP CUP Medical Cannabis Cooperative or P P P P P P P Collectives Medical or Adult Use Cannabis P" P" P P P P P P P Dispensary Medical or Adult Use Cannabis R P R P P P Cultivation Facility CUP CUP CUP CUP CUP CUP Medical or Adult Use Cannabis L412 LID L 12 WILP Lk3R Manufacturing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LUP LUP LUP LUP LUP Jesting Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis Transportation&Distribution P P P P P P Facilit List of Abbreviations: P=Permitted Use; LUP =Land Use Permit; CUP = Conditional Use Permit Underlined text is added;stricken te)is removed "The Planning Commission has recommended that dispensaries not be permitted in the CBD and C-1 districts. In addition to the inclusion of new cannabis-related use categories, it is proposed that the approval process for certain uses be revised to become discretionary reviews. As proposed, a Conditional Use Permit would be required for all Cultivation Facilities, Manufacturing Facilities, and Testing Facilities as a means to incorporate a CEQA review, as those uses may have environmental impacts. In addition, it is proposed that a Conditional Use Permit be required for the Cannabis Lounge use as a means to assess impacts to adjacent businesses and properties. l; e City Council Staff Report November 15, 2017-- Page 5 Cannabis Zoning Ordinance, Interim Urgency Ordinance 2. Separation Distance Requirements: As a means to prevent the oversaturation of dispensary facilities, it is proposed that the separation distance between dispensaries be increased from 500' to 1000', and that separation distances for dispensaries within the Downtown/Uptown areas be established at 2000'. With the allowance of dispensaries in the CBD and C-1 zoning districts, the separation distance from Palm Canyon Drive would need to be eliminated. In addition, it is proposed that separation distance requirements be instituted for cultivation uses from protected uses and residential zones. Previously, no separation distances were required; it is proposed that the same separation requirements be applied to cultivation uses as manufacturing and testing uses. For the proposed Medical or Adult-Use Cannabis Transportation and Distribution Facility use, it is proposed that separation distances be imposed from Palm Canyon Drive, residential zones, and protected uses (schools, parks, daycare, etc.). Separation Distance Requirements School MCD or MF Palm Public Playground MCD or AUD TF Residential Public Park Use MCCC AUD (Downtown/ CF Canyon Zone Day Care/Child Uptown) TDF Drive Care Youth Center None le 250' 1000' MCCC None None None None 250' 250' 500' MCD or AUD 59(� 5W 1000, None 250'None 250' 500' 1000, 1000, MCD or AUD 1000, 1000, 2000' N/A None 250' 500' Downtown/ U town MF None None N/A None 250' 250' 500' TF None None N/A None 250' 250' 500' CF None None N/A None None NeRe 250' NeRe 500' TDF None None N/A None 250' 250' 500' List of Abbreviations: CL: Cannabis Lounge MCCC: Medical Cannabis Cooperative or Collective MCD: Medical Cannabis Dispensary AUD: Adult Use Dispensary ME Medical or Adult Use Cannabis Manufacturing Facility TF: Medical or Adult Use Cannabis Testing Facility CF: Medical or Adult Use Cannabis Cultivation Facility TDF: Medical or Adult Use Transportation and Distribution Facility Underlined text is added; Orin-cen-text is removed 'The Planning Commission has recommended against dispensaries in the CBD and C-1 zoning districts; if City Council follows the recommendation of the Planning Commission, then the separation distance from Palm Canyon Drive should remain in place. t'', 5 City Council Staff Report November 15, 2017-- Page 6 Cannabis Zoning Ordinance, Interim Urgency Ordinance 4. Architectural Review — Dispensaries: A proposed addition to the general standards for cannabis-related uses contained in PSZC Section 93.23.15 is the requirement to review storefronts for dispensary operations through the Architectural Review process. Applicants would be required to file a Minor Architectural Application, which would be reviewed by both the Architectural Advisory Committee (AAC) and the Planning Commission. In addition to reviewing the storefronts for conformance to the standard criteria contained in PSZC Section 94.04.00(D), the AAC and Planning Commission would specifically review the following elements of the storefront: • Exterior colors and materials, including doors and windows; • Awnings; • Exterior lighting; • Landscaping (where applicable); and • Proposed signage, with respect to materials, color, illumination, font, and location on the facade of the building. It is only proposed that dispensaries be subject to the Architectural Review process; other cannabis-related businesses would not need to go through the Architectural Review process, unless otherwise required by ordinance for new construction or renovations. 5. On-site consumption of cannabis products. Based on the direction of the subcommittee, staff prepared draft language to allow on-site smoking or consumption of cannabis and cannabis products through the adoption of a Cannabis Lounge use. It is proposed that the Cannabis Lounge use be permitted in the CBD (Central Business District), C-1 (Retail Business)zones, in addition to all other zones where the dispensary use is permitted. The use would require the approval of a Conditional Use Permit (CUP). In accordance with state law, the Cannabis Lounge would be restricted to patrons who are 21 years of age and older, no alcohol or tobacco products could be sold or consumed on site, and no use of cannabis products would be permitted in view of any public place. Cannabis and cannabis products could be sold on the premises by the operator upon approval of an Adult Use Dispensary permit; however, all cannabis products sold would need to be consumed on the premises. The Cannabis Lounge could also be operated in such a manner that patrons would be allowed to bring their own legally permissible cannabis products for smoking or consumption on the premises. Due to concerns about on-site smoking of cannabis, requirements for odor control have also been proposed so as to limit impacts to adjacent properties and businesses. The proposed ordinance defines odors from a Cannabis Lounge as being a public nuisance, allows the City to pursue administrative and civil remedies, and identifies a process by which operators must implement necessary changes to correct the nuisance. 5. Interim Urgency Ordinance. Staff submits the following urgency findings to the Council for consideration. ,° 0 G City Council Staff Report November 15, 2017-- Page 7 Cannabis Zoning Ordinance, Interim Urgency Ordinance 1. The City Council adopted Ordinance 1933 on July 26, 2017, and the City's current regulations providing for permitting of commercial medical cannabis and adult-use cannabis businesses went into effect on August 25, 2017. Since that time, fourteen (14) businesses have applied for regulatory permits to operate in the City, in anticipation of the state finalizing its regulations and commencing to issue licenses. Throughout the application process, the City has placed applicants on notice that zoning and development standards have not yet been adopted by the City Council, and that each applicant is proceeding "at risk"with respect to its proposed location. Based upon City communications with applicants, uncertainty among applicants as to where certain medical and adult-use cannabis uses will be permitted, conditionally permitted, and prohibited, has adversely impacted the ability of applicants to move forward with commitments regarding real estate, i.e., the specific location of a proposed cannabis use, and commit resources to providing enhanced detail in applications being prepared. As a result, the City has determined that the absence of adopted zoning and development standards for cannabis uses is delaying the evolution of commercial medical and adult-use cannabis that advance the public health, safety and welfare. 2. Now that the voters of the City have approved Measure E, the City Council desires to consider and approve, with all possible speed, the zoning and development standards reflected in this interim urgency ordinance, which are identical to the zoning and development standards that will go into effect during January 2018 pursuant to the parallel "regular ' introduced on even date with the adoption of this interim urgency ordinance. 3. The City will be ready to issue permits prior to January 2018. At least some permit- holders will be adversely impacted if the City has no zoning and development standards in place prior to that time. Again, with the voters' approval of Measure E, and the corresponding legislative reality that the City will be issuing permits under Chapters 5.45 and 5.55 of the Palm Springs Municipal Code, the City anticipates that many more applications will be filed in upcoming weeks. Adoption of this interim urgency ordinance will likely augment the number and enhance the quality of those applications, and will be the best means to advance the public health, safety and welfare insofar as they relate to the regulation and growth of the commercial medical and adult-use cannabis businesses in the City. PLANNING COMMISSION RECOMMENDATIONS: The Planning Commission reviewed the draft ordinance at a study session on the morning of October 11, 2017, and held a public hearing on the matter that afternoon. While the Planning Commission was generally supportive of the draft ordinance, they recommended the following changes and modifications: • Do not allow dispensaries in the CBD (Central Business District) and C-1 (Retail Business) zoning districts at this time. While the commission was of the opinion that dispensaries may be appropriate in the CBD and C-1 districts at some point 07 City Council Staff Report November 15, 2017--Page 8 Cannabis Zoning Ordinance, Interim Urgency Ordinance in the future, it was felt that the City should take a more measured approach to allowing adult-use cannabis businesses, and to revisit the matter once adult-use cannabis businesses had been established. In addition, it was felt that dispensaries might displace retail businesses in the downtown area or design- related businesses in the Uptown District. • Do not use Census tracts as a method to limit dispensaries; establish a maximum limit based on population. The Planning Commission reviewed a Census tract- based model that would have limited the number of dispensaries based on the population of each tract, and offered concern that the method would allow more dispensaries than necessary to serve the population. The commission recommended that dispensaries be limited on a basis of one dispensary for each 8,000 permanent residents or portion thereof. • Institute separation distance requirements for cultivation facilities. In reviewing the separation distance requirements for all cannabis-related uses, the Planning Commission recommended that separation distance requirements be instituted for cultivation uses. Currently, cultivation uses have no separation distance requirement from protected uses (schools, parks, daycare facilities, etc.), residential areas, or Palm Canyon Drive. • Do not allow on-site consumption of cannabis products at this time. The Planning Commission reviewed the proposal to allow on-site consumption of cannabis products, and considered testimony from the public regarding clubs for the smoking, vaporizing or ingestion of cannabis products in a social setting. The commission was opposed to the concept of allowing the sale of menu items with cannabis ingredients as an accessory use, due to concerns about the ability to restrict or control access to the products. However, they indicated general support in the future for the allowance of age-restricted businesses (or clubs) where cannabis products could be consumed in a social setting, provided that alcohol products would not be available on the premises. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3: 1. The ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a "project' under CEQA, and is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment; og City Council Staff Report November 15, 2017--Page 9 Cannabis Zoning Ordinance, Interim Urgency Ordinance 2. The ordinance is exempt under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the administrative activity in question may have a significant effect on the environment. The commercial medical and adult-use cannabis businesses conforming to the various categories provided under state. law and Palm Springs Municipal Code Chapters 5.45 and 5.55 will have environmental impacts that are similar tc other farming, manufacturing, distribution, laboratory, and transportation and distribution activities already authorized within the City. The actual, potential, direct, indirect and cumulative environmental impacts of each of these businesses, if any, will be analyzed and mitigated, to the extent that any mitigation is required, on a project- by-project basis. Any identification of particular environmental impacts arising from or related to this administrative activity taken through this ordinance would be entirely speculative. Further, there is no possibility that this Ordinance would create cumulative impacts that are significant because this Ordinance does not authorize construction, development or other related activities or any other activities that are not already permitted, except that the ordinance allows the same activities but in relation to different material (adult-use or commercial medical cannabis)that is being grown, sold,transported, or otherwise utilized in some form. There are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; and 3. The Ordinance is also exempt under CEQA Guidelines Section 15183 (projects consistent with existing zoning, the general plan, or community plan) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning, such as agriculture, manufacture, and distribution of other agricultural products and/or products to be used as pharmaceuticals. NOTIFICATION: A public hearing notice was published in accordance with the requirements of State law and local ordinance. i Marcus L. Fuller, MPA, P.E., P.L.S. Edward Z. Kotkin Assistant City Manager City Attorney David H. Ready, Esq., Flinnagg, AIC City Manager Director of Planning Services 09 City Council Staff Report November 15, 2017--Page 10 Cannabis Zoning Ordinance, Interim Urgency Ordinance Attachments: 1. Proposed Regulations 2. Draft Ordinance 3. Draft Interim Urgency Ordinance 4. Planning Commission Staff Report— October 11, 2017 5. Minutes Excerpts — 10/11/17 Planning Commission Study Session and 10/11/17 Planning Commission Meeting 6. Public Comment Letters Attachment: Proposed Amendments — Medical and Adult Use Cannabis Facilities PSZC Chapter 91.00.10 Definitions. "Adult-Use Cannabis Dispensary" means a premises where Adult-Use Cannabis, Adult-Use Cannabis products, or devices for Adult-Use Cannabis or Adult-Use Cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid adult-use cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Adult-Use Cannabis Facility" means any business or operation which engages in adult-use cannabis activity. "Cannabis Lounge" means a discrete facility where Medical or Adult Use Cannabis and Medical or Adult Use Cannabis products may be smoked or ingested within the confines of the facility. "Downtown" means that portion of the City within the boundaries of Aleio Road on the north, Ramon Road on the south, Belardo Road/Museum Drive on the west and Indian Canyon Drive on the east. This area includes both sides of Palm Canyon Drive, Amado Road, Andreas Road, Tahquitz Canyon Way, Arenas Road and Baristo Road within such boundaries. "Medical Cannabis Dispensary" means a premises where medical cannabis, medical cannabis product, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid medical cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Medical Cannabis Facility" means any business or operation which engages in medical cannabis activity. "Medical or Adult-Use Cannabis Transportation and Distribution Facility" means a facility for the procurement, sale, storage, transfer and transport of cannabis and cannabis products between entities licensed pursuant to this chapter. "Medical or Adult-Use Cannabis Cultivation Facility" means a R^ P-np.'A,;Rd facility where rnedisa4 cannabis is cultivated and processed only for distribution to a licensed Medical or Adult-Use Cannabis r,,,,perative er GelleGtive Facility. "Medical or Adult-Use Cannabis Manufacturing Facility" means a facility where cannabis is processed, extracted, or compounded into edible or topical products intended for consumption, inhalation, or topical application, including a facility that 15 November 2017 Page 1 r packages or repackages cannabis products, where the operator holds a valid permit for manufacturing from the City of Palm Springs, and a valid state license as required by State Law for manufacturing. "Medical or Adult-Use Cannabis Testing Facility" means a facility, entity, or site that offers or performs testing of medical or adult-use cannabis or medical or adult- use cannabis products and that is both of the following: 1 . Accredited by an accrediting body that is independent from all other persons involved in any segment or aspect of the industry in the state; and 2. Registered with the California State Department of Public Health. "Premises" means the land and any structures erected on it or the defined space within a building assigned to a single occupancy. "Uptown" means that portion of the City within the boundaries of Aleio Road on the south, Vista Chino on the north, the west side of Palm Canyon Drive on the west, and Indian Canyon Drive on the east. PSZC Chapter 92 — Permitted Uses. Zoning Districts Use CBD C-1 C-2 HC C-M M-1 M-1 M-2 E-I A SUP CUP CUP CUP CUP Medical Cannabis Cooperative P P P P P P P or Collectives Medical or Adult Use Cannabis P P P P P P P P P Dispensary — — Medical or Adult Use Cannabis P P P P P P Cultivation Facility CUP CUP CUP CUP CUP CUP Medical or Adult Use Cannabis L4P L� L412 L412 L412 Manufacturing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LUP LUP WP LUP LUg Testing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis Transportation & Distribution P P P P P P Facilit List of Abbreviations: P=Permitted Use LUP =Land Use Permit CUP=Conditional Use Permit Underlined text is added;stricken-text is removed 15 November 2017 Page 2 12 PSZC 93.23.15 Special Standards for Specified Medical Cannabis Facilities. A. General Requirements. No land use entitlement, permit(including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a Medical Cannabis Facility or an Adult Use Cannabis Facility shall be granted or permitted except in conformance with this Section. B. Regulatory Permit Required. Medical Cannabis Facilities and Adult Use Cannabis Facilities shall be permitted only upon application and approval of a regulatory permit in accordance with the criteria and process set forth in Chapter 5.35, Chapter 5.45 or Chapter 5.55 of this Code. Prior to initiating operations and as a continuing requisite to conducting operations, the person or the legal representative of the person wishing to operate a Medical Cannabis Facility or an Adult Use Cannabis Facility, as those terms are defined in Section 91.00.10, shall secure a regulatory permit from the City Manager under the terms and conditions set forth in Chapter 5.35, Chapter 5.45, or Chapter 5.55 of this Code and shall otherwise fully comply with the provisions of this Section. C. Separation Distance Requirements. No Medical Cannabis Facilities or Adult Use Cannabis Facilities shall be established, developed or operated except in accordance with the separation distances listed in the table below. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest property line of the property on which the Medical Cannabis Facility or Adult Use Cannabis Facility is, or will be located, and to the nearest property line of those uses described in this Subsection. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.13. Separation Distance Requirements School MCD or MF Palm Public Playground MCD or AUD TF Residential Public Park Use MCCC AUD (Downtown/ CF Canyon Zone Day Care/Child Uptown) TDF Drive Care Youth Center CL None None None None None 250' 1000, MCCC None None None None 250' 250' 500' MCD or AUD 5W 5W 1000' None 259 None 250' 500, 1000, 1000' MCD or AUD 1000, 1000, 2000' N/A None 250' 500' Downtown/ U fown MF None None N/A None - 250' 250' 500' ' TF None None N/A None 250' 250' 500, CF None None N/A None None NG%250' None 500' TDF None one NIA None 25U 250' 500' List of Abbreviations: CL: Cannabis Lounge 15 November 2017 Page 3 MCCC: Medical Cannabis Cooperative or Collective MCD: Medical Cannabis Dispensary AUD: Adult Use Dispensary ME Medical or Adult Use Cannabis Manufacturing Facility TF: Medical or Adult Use Cannabis Testing Facility CF: Medical or Adult Use Cannabis Cultivation Facility TDF: Medical or Adult Use Transportation and Distribution Facility D. Accessory Uses: A Medical Cannabis Facility or an Adult Use Cannabis Facility is not and shall not be approved as an accessory use to any other use permitted by this Zoning Code. Medical Cannabis Facilities and Adult Use Cannabis Facilities may be located on the same parcel or on the same premises as otherwise permitted by this Zoning Code. E. Parking Requirements. Except within the E-1 Zone, where M-2 standards shall apply, Medical Cannabis and Adult Use Cannabis Facilities shall be parked at a rate of one (1) space for every three hundred (300) gross square feet of retail dispensary space or office space, and one (1) space for every eight hundred (800) gross square feet of warehouse/cultivation space. Cannabis Lounge facilities shall be parked at a rate of one (1) space for every three (3) seats, or one (1) space for every thirty-five (35) square feet where the public is served. Cannabis Lunge facilities within the T" Downtown Parking Combining Zone may be parked at a rate of one (1) space for every four(4) seats, or one (1) space for every fifty (50) square feet where the public is served. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01 .13. F. Additional Requirements for Specific Cannabis Uses. 1. Medical Cannabis and Adult Use Cannabis Cultivation Facilities. Any Medical Cannabis or Adult Use Cannabis Cultivation Facility in excess of ten thousand (10,000) square feet shall operate only within the E-1 or M-2 Zones. 2. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries. The following requirements shall apply to Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries: a. Square Footage Restrictions — Downtown/Uptown. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries shall be limited to a maximum of one thousand five hundred (1,500) square feet in gross floor area on the street/ground level of anv building in the defined Downtown/Uptown areas. Dispensaries (or portions thereof) located above the street/ground level shall be limited to a maximum of five thousand (5,000) square feet in gross floor area- b. Architectural Review. Medical Cannabis and Adult Use Cannabis Dispensaries shall be subject to Architectural Review by the 15 November 2017 Page 4 14 Planning Commission, pursuant to Section 94.04.00(E)(2)(c). The Planning Commission and the Architectural Advisory Committee shall be tasked with reviewing the exterior storefront design subject to the criteria listed in Section 94.04.00(D), with respect to the following elements: 1) Exterior color and materials of the storefront; 2) Awnings (where applicable); 3) Proposed signage, with respect to construction, font, illumination, color, and location; 4) Exterior lighting; and 5) Landscaping (where applicable). 3. Internal Testing Facility — Accessory to a Permitted Cannabis Facility. An on-premises testing facility may be permitted accessory to a Medical or Adult Use Cannabis Cultivation Facility or a Medical or Adult Use Cannabis Manufacturing Facility for the purpose of internal testing of cannabis products grown or produced at the facility. The internal testing facility shall be subject to the following requirements: a. The testing results cannot be published or shared with the public or any third party. b. Testing shall be limited to cannabis products grown or produced at the facility. C. The area dedicated to the internal testing facility shall be clearly shown and identified on any floor plans submitted to the City for the cannabis facility. d. No additional entitlement is required for an accessory internal testing facility; however, environmental analysis of the internal testing facility shall be performed as part of the environmental analysis for the associated cultivation or manufacturing use. e. Nothing in this Subsection (F)(3) shall be construed to limit the applicability of City regulations, including without limitation all provisions of Chapter 5.45 and 5.55 and any regulations promulgated by the City Manager pursuant thereto, to the colocation of the accessory internal testing facility. 4. Cannabis Lounge Facilities. Cannabis Lounge Facilities shall be subject to the following requirements: a. Separate Premises. Cannabis Lounge Facilities shall be located on a separate parcel or within a tenant space that is segregated and apart from any other use. A Cannabis Lounge Facility shall have a 15 November 2017 , Page 5 15 dedicated entrance from the street or public sidewalk and shall have no internal connections or passage to any other tenant space or use. b. Sale of Cannabis and Cannabis Products. Medical or adult-use cannabis and medical or adult-use cannabis products may be sold on the premises of a Cannabis Lounge, subject to the following: 1) The operator must hold an Adult-Use Dispensary permit; however, only the distance separation requirements for the Cannabis Lounge use shall be applicable to the facility. 2) All medical or adult-use cannabis and medical or adult-use cannabis products sold on the premises must be smoked, inhaled, consumed or ingested on the premises. Cannabis and cannabis products shall not be sold or provided for off- site use. 3) The operator may permit patrons to bring their own personal cannabis or cannabis products to the Cannabis Lounge Facility. Patrons shall not be allowed to sell or otherwise distribute their cannabis or cannabis products to other patrons. All cannabis or cannabis products brought to the facility must be smoked, inhaled, consumed or ingested on site, and shall not be permitted to leave the facility. C. Smoking of Cannabis. The smoking of cannabis may be permitted at a Cannabis Lounge Facility, as may be allowable under state law. d. Alcohol and Tobacco Products. The sale or consumption of alcohol or tobacco products is not allowed on the premises. e. Minors. Access to the Cannabis Lounge Facility shall be restricted to persons twenty-one (21) years of age and older. f. Visibility. The smoking, inhalation, consumption or ingestion of cannabis or cannabis products shall not be visible from any public place or any area where minors may be present. The Cannabis Lounge shall be located within a completely enclosed building. q. Odor Control. 1) The operator of each Cannabis Lounge Facility shall provide adequate air filtration so as to prevent any detectable odor from the exterior of the premises. Within twenty-four (24) hours of any complaint concerning odors emanating from or originating within the facility, the operator shall respond to the 15 November 2017 Page 6 16 complaint in question, and shall timely file a written disclosure to the Building Official documenting any and all actions taken and planned to address the odor complaints. The Building Official upon a determination of the continued existence of detectable odor from the facility, may require an operator to submit an implementation plan and/or a performance schedule, above and beyond this written disclosure filed within twenty-four (24) hours, to ensure the employment of measures to control the odor. 2) The Building Official shall have the authority to require an operator of a Cannabis Lounge Facility to amend any implementation plan and/or performance schedule submitted pursuant to this Subparagraph F.4.g to cause compliance herewith. 3) Any failure to timely submit a written disclosure, a more detailed implementation plan and/or performance schedule or amendment thereto, to timely adhere to the terms of either, or to complete any required improvments within the timeframe specified by the Building Official shall be grounds for revocation of the permit for the cannabis lounge facility. 4) Odors from a Cannabis Lounge Facility are identified as a public nuisance pursuant to PSMC Chapter 11.72. The City may pursue all administrative, civil and criminal remedies identified in that chapter in relation to any nuisance determined to exist with respect to the operation of a cannabis lounge facility in violation of this Subparagraph F.4.g. Legend: Underlined text is added;strisk?n feat is removed. 15 November 2017 Page 7 17 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTERS 91, 92, AND 93 OF THE PALM SPRINGS ZONING CODE RELATIVE TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS FOR COMMERCIAL MEDICAL AND ADULT-USE CANNABIS FACILITIES. City Attorney Summary This Ordinance amends provisions of the City's Zoning Code to establish and amend zoning regulations for new Commercial Medical and Adult-Use Cannabis Facilities, as permitted under the Medical and Adult Use Cannabis Regulation and Safety Act. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority granted the City by Sections 5 and 7 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations upon the use of land and property within the City. B. Pursuant to Article XI, Section 7 of the California Constitution, the City of Palm Springs may adopt and enforce ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its citizens. C. The Federal Government has issued guidelines for states and local governments that have enacted laws authorizing cannabis-related conduct, requiring them to implement strong and effective regulatory and enforcement systems that will address the threat that medical and adult-use cannabis activity could pose to public safety, public health, and other law enforcement interests. D. On June 27, 2017, Governor Brown signed into law the Medical and Adult Use Cannabis Regulation and Safety Act("MAUCRSA"), legislation intended to provide and consolidate a comprehensive regulatory framework for licensing, control, and taxation of commercial medical and adult-use cannabis related businesses in California. MAUCRSA expressly protects a City's local licensing practices, zoning authority, and other local actions taken pursuant to the City's Constitutional municipal and police powers. State law, inclusive of MAUCRSA, contains statutory provisions that: is Ordinance No. Page 2 1. Allow local governments to enact ordinances expressing their intent to allow or prohibit the cultivation of cannabis and their intent to administer or not administer a conditional permit program pursuant to California Health and Safety Code section 11362.777 for the cultivation of cannabis; 2. Expressly provide that state law does not supersede or limit local authority for local law enforcement activity, enforcement of local ordinances or enforcement of local permit or licensing requirements regarding cannabis per California Business and Professions Code section 19315(a); 3. Expressly provide that state law does not limit the civil or administrative authority or remedies of a local government provision of law regarding cannabis including, but not limited to, a local government's right to make and to enforce within its limits all regulations not in conflict with general laws per California Business and Professions Code section 19316(c); 4. Specifically require, as a condition of state licensure, compliance with any and all local requirements for all cannabis-related operations. E. With that purpose, the City Council has adopted Chapters 5.45 and 5.55 of the Palm Springs Municipal Code to accommodate businesses allowing the commercial medical and adult use of cannabis while protecting the health, safety, and general welfare of the residents and businesses within incorporated areas of the City of Palm Springs in compliance with all applicable state law. F. It is the intent of the City Council to have a strong and effective regulatory and enforcement system with regard to commercial medical and adult- use cannabis that addresses identifiable challenges to public health, safety, and welfare, and advances law enforcement and community concerns through robust zoning controls and licensing procedures that are effective in practice. G. The City Council desires to establish reasonable zoning regulations and development standards related to commercial medical and adult-use cannabis related businesses which are intended to address the negative impacts and nuisance impacts associated with the uses. H. The City Council finds that the uses and activities permitted under this ordinance are consistent with and implement the goals and policies of the Palm Springs General Plan. I. The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3: 19 Ordinance No. Page 3 1. The ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a "project' under CEQA, and is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment; 2. The ordinance is exempt under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the administrative activity in question may have a significant effect on the environment. The commercial medical and adult-use cannabis businesses conforming to the various categories provided under state law and Palm Springs Municipal Code Chapters 5.45. and 5.55 will have environmental impacts that are similar to other farming, manufacturing, distribution, laboratory, and transportation and distribution activities already authorized within the City. The actual, potential, direct, indirect and cumulative environmental impacts of each of these businesses, if any, will be analyzed and mitigated, to the extent that any mitigation is required, on a project-by-project basis. Any identification of particular environmental impacts arising from or related to this administrative activity taken through this ordinance would be entirely speculative. Further, there is no possibility that this Ordinance would create cumulative impacts that are significant because this Ordinance does not authorize construction, development or other related activities or any other activities that are not already permitted, except that the ordinance allows the same activities but in relation to a different material (adult-use or commercial medical cannabis) that is being grown, sold, transported, or otherwise utilized in some form. There are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; and 3. The Ordinance is also exempt under CEQA Guidelines Section 15183 (projects consistent with existing zoning, the general plan, or a community plan) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning, such as agriculture, manufacture, and distribution of other agricultural products and/or products to be used as pharmaceuticals; THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. Palm Springs Zoning Code (PSZC) Section 91.00.10(B) is hereby amended to read: "Adult-Use Cannabis Dispensary" means a premises where Adult-Use Cannabis,Adult-Use Cannabis products, or devices forAdult-Use Cannabis 20 Ordinance No. Page 4 or Adult-Use Cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid adult-use cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Adult-Use Cannabis Facility" means any business or operation which engages in adult-use cannabis activity. "Cannabis Lounge" means a discrete facility where Medical or Adult Use Cannabis and Medical or Adult Use Cannabis products may be smoked or ingested within the confines of the facility. "Downtown" means that portion of the City within the boundaries of Aleio Road on the north, Ramon Road on the south, Belardo Road/Museum Drive on the west and Indian Canyon Drive on the east. This area includes both sides of Palm Canyon Drive, Amado Road, Andreas Road, Tahquitz Canyon Way, Arenas Road and Baristo Road within such boundaries. "Medical Cannabis Dispensary" means a premises where medical cannabis, medical cannabis product, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid medical cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Medical Cannabis Facility" means any business or operation which engages in medical cannabis activity. "Medical or Adult-Use Cannabis Transportation and Distribution Facility" means a facility for the procurement, sale, storage, transfer and transport of cannabis and cannabis products between entities licensed pursuant to this chapter. "Medical or Adult-Use Cannabis Cultivation Facility" means a an enslesed facility where medisat cannabis is cultivated and processed only for distribution to a licensed Medical or Adult-Use Cannabis Geeper a"per Gellest+ve Facility. "Medical or Adult-Use Cannabis Manufacturing Facility" means a facility where cannabis is processed, extracted, or compounded into edible or topical products intended for consumption, inhalation, or topical application, including a facility that packages or repackages cannabis products, where the operator holds a valid permit for manufacturing from the City of Palm Springs, and a valid state license as required by State Law for 21 Ordinance No. Page 5 manufacturing. "Medical or Adult-Use Cannabis Testing Facility" means a facility, entity, or site that offers or performs testing of medical or adult-use cannabis, or medical or adult-use cannabis products and that is both of the following: 1. Accredited by an accrediting body that is independent from all other persons involved in any segment or aspect of the cannabis industry in the state; and 2. Registered with the California State Department of Public Health. "Premises" means the land and any structures erected on it or the defined space within a building assigned to a single occupancy. "Uptown" means that portion of the City within the boundaries of Aleio Road on the south, Vista Chino on the north, the west side of Palm Canyon Drive on the west, and Indian Canyon Drive on the east. SECTION 2. PSZC Section 92.09.01(A) is hereby amended to read: 32. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 3. PSZC Section 92.09.01(D) is hereby amended to read: 5. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 4. PSZC Section 92.12.01(A) is hereby amended to read: 34. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 5. PSZC Section 92.12.01(D) is hereby amended to read: 7. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 22 Ordinance No. Page 6 (Following uses renumbered accordingly) SECTION 6. PSZC Section 92.14.01(A) is hereby amended to read: 18. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; SECTION 7. PSZC Section 92.14.01(D) is hereby amended to read: 5. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION & PSZC Section 92.14.1.01(A) is hereby amended to read: 4. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 92.23.15 of this Code; SECTION 9. PSZC Section 92.14.1.01(D) is hereby amended to read: 4. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 10. PSZC Section 92.15.01(A) is hereby amended to read: '!I AAA in;4l GARRAbis r„ItiVAtiOR fRnilitiesr su eGt to the pFepe ne Fnpllnnne with the previsions of Gunter 5.35 of this (merle• 2221. Medical cannabis dispensary or adult-use cannabis dispensary, subiect to the property development standards contained in Section 93.23.15 of this Code; 22. Medical or adult-use cannabis transportation and distribution facility, subiect to the development standards contained in Section 93.23.15 of this Code; SECTION 11. PSZC Section 92.15.01(C) is hereby amended to eliminate the following use: .. 2 3 Ordinance No. Page 7 (Following uses renumbered accordingly) SECTION 12. PSZC Section 92.15.01(D) is hereby amended to read: 4. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 10. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 12. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 13. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 13. PSZC Section 92.16.01(A) is hereby amended to read: 5. MediGal nnabis nU!tgyatinn faGilifies, bj s eGt fri the nrope �� GE)rnplianGe with the provisions of Chapter 5.35 of this GodeT 6 5. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 6. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; SECTION 14. PSZC Section 92.16.01(C) is hereby amended to eliminate the following use: 4 M'ediGall Gannabis Fnan„fa Gturing facility and medinol Gannabis testing fa� (Following uses renumbered accordingly) SECTION 15. PSZC Section 92.16.01(D) is hereby amended to read: 6. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; r: Ordinance No. Page 8 10. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 11 . Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 12. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 16. PSZC Section 92.17.01(A) is hereby to read: 7 tMediGal nonnabiS GUltiyatien fanilitieS c„hjeGt to the nrnnertGOmplianGe with the pFevisions of Chapter 55.35 of this Ge�del- 7. Medical or adult-use cannabis transportation and distribution facility, subiect to the development standards contained in Section 93.23.15 of this Code; 11. Services. i. Medical cannabis dispensary or adult-use cannabis dispensary, subiect to the property development standards contained in Section 93.23.15 of this Code; SECTION 17. PSZC Section 92.17.01(C) is hereby amended to eliminate the following use: testing#aeilit� (Following uses renumbered accordingly) SECTION 18. PSZC Section 92.17.01(D) is hereby amended to read: 7. Cannabis lounge, subiect to the property development standards contained in Section 93.23.15 of this Code; 16. Medical or adult-use cannabis cultivation facility, subiect to the development standards contained in Section 93.23.15 of this Code; 17. Medical or adult-use cannabis manufacturing facility, subiect to the development standards contained in Section 93.23.15 of this Code; ., 5 Ordinance No. Page 9 18. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 19. PSZC Section 92.17.1.01(A) is hereby amended to read: development tanr aFd nnntalnnd in G`nntlon 93 22 15 of thin Cn` a and GGFnpliaRGe With the provisions of Chapter 525 of this ; 7-.6. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 7. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; SECTION 20. PSZC Section 92.17.1.01(C) is hereby amended to eliminate the following use: testing }� SECTION 21. PSZC Section 92.17.1.01(D) is hereby amended to read: 6. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 14. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 15. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 16. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 22. PSZC Section 92.17.2.01(A) is hereby amended to read: development eta RdaFdG Gent-ained- in Cnntinn nZ 23 15 of this QAL; And �+ Ordinance No. Page 10 GGrnpliaRGe With the provisions of Chapter 5.35 of this Gerlo 7. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; SECTION 23. PSZC Section 92.17.2.01(C) is hereby amended to eliminate the following use: testing SECTION 24. PSZC Section 92.17.2.01(D) is hereby amended to read: 10. Medical or adult-use cannabis cultivation facility, subiect to the development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 12. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 25. PSZC Section 92.18.01(A) is hereby amended to read: in. `tinol onnnabis�n�t' ntinn feoilhie$, SLlbeGt t0 the property To. j`� development standards nnntained in Carbon 93 23 15 of this Gerle and , 44,10. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis transportation and distribution facility, subiect to the development standards contained in Section 93.23.15 of this Code; SECTION 26. PSZC Section 92.18.01(C) is hereby amended to read: 5. Medical or adult-use cannabis cultivation facility, subiect to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) p. 1 c'. 7 Ordinance No. Page 11 SECTION 27. PSZC Section 93.23.15 is hereby amended to read: A. General Requirements. No land use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a Medical Cannabis Facility or an Adult Use Cannabis Facility shall be granted or permitted except in conformance with this Section. B. Regulatory Permit Required. Medical Cannabis Facilities and Adult Use Cannabis Facilities shall be permitted only upon application and approval of a regulatory permit in accordance with the criteria and process set forth in Chapter 5.35, Chapter 5.45 or Chapter 5.55 of this Code. Prior to initiating operations, and as a continuing requisite to conducting operations, the person or the legal representative of the person wishing to operate a Medical Cannabis Facility or an Adult Use Cannabis Facility, as those terms are defined in Section 91.00.10, shall secure a regulatory permit from the City Manager under the terms and conditions set forth in Chapter 5.35, Chapter 5.45, or Chapter 5.55 of this Code and shall otherwise fully comply with the provisions of this Section. C. Separation Distance Requirements. No Medical Cannabis Facilities or Adult Use Cannabis Facilities shall be established, developed or operated except in accordance with the separation distances listed in the table below. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest property line of the property on which the Cannabis Facility is, or will be located, and to the nearest property line of those uses described in this Subsection. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01 .B. Se aratilon Distance Re uirertients; INCI)ar , '; ,CIF School Palm Public Playground MCD or Residential Use; � MCCC Carryon Public Park AUD (Downtown/ CF one—, Uptowns a�D . tSrlve Day Care�C6ildCare Youth Center,' CL None None None None None 250' 1000, MCCC None None None None 250' 250' 500, MCD or AUD 5W 1000' 5W 1000' 1000, None 2w 250' 500' None MCDorAUD 1000, 1000, 2000' N/A None 250' 500' Downtown/ Uptown) MF None None N/A None 250' 250' 500, TF None None N/A None 250' 250' 500' CF None None N/A None None Nerve 250' Nene 500' c. Ordinance No. Page 12 ep atef6nDlstacR ulremerits' r Scholl .. PA lf bllc i?la�rground MCD br AUD RO�ldWWI public park Use .MCCC Canpon UD lCF ne Drive Zo DeyCarel�Chtld� are- � . t7pfowr�) R, 15F z r _.K f ent�r TDF None None N/A None 250' 250' 500' List of Abbreviations: CL: Cannabis Lounge MCCC. Medical Cannabis Cooperative or Collective MCD: Medical Cannabis Dispensary AUD: Adult Use Dispensary MP Medical or Adult Use Cannabis Manufacturing Facility TF: Medical or Adult Use Cannabis Testing Facility CF: Medical or Adult Use Cannabis Cultivation Facility TDF: Medical or Adult Use Transportation and Distribution Facility D. Accessory Uses: A Medical Cannabis Facility or an Adult Use Cannabis Facility is not and shall not be approved as an accessory use to any other use permitted by this Zoning Code. Medical Cannabis Facilities and Adult Use Cannabis Facilities may be located on the same parcel or on the same premises as otherwise permitted by this Zoning Code. E. Parking Requirements. Except within the E-I Zone, where M-2 standards shall apply, Medical Cannabis and Adult Use Cannabis Facilities shall be parked at a rate of one (1) space for every three hundred (300) gross square feet of retail dispensary space or office space, and one (1) space for every eight hundred (800) gross square feet of warehouse/cultivation space. Cannabis Lounge facilities shall be parked at a rate of one (1) space for every three (3) seats, or one (1) space for every thirty-five (35) square feet where the public is served. Cannabis Lunge facilities within the T" Downtown Parking Combining Zone may be parked at a rate of one (1) space for every four(4) seats, or one (1) space for every fifty (50) square feet where the public is served. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.B. F. Additional Requirements for Specific Cannabis Uses. 1 . Medical Cannabis and Adult Use Cannabis Cultivation Facilities. Any Medical Cannabis or Adult Use Cannabis Cultivation Facility in excess of ten thousand (10,000) square feet shall operate only within the E-I or M-2 Zones. 2. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries. The following requirements shall apply to Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries: .3 9 Ordinance No. Page 13 a. Square Footage Restrictions — Downtown/Uptown. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries shall be limited to a maximum of one thousand five hundred (1,500) square feet in gross floor area on the street/ground level of any building in the defined Downtown/Uptown areas. Dispensaries (or portions thereof) located above the street/ground level shall be limited to a maximum of five thousand (5,000) square feet in gross floor area. b. Architectural Review. Medical Cannabis and Adult Use Cannabis Dispensaries shall be subject to Architectural Review by the Planning Commission, pursuant to Section 94.04.00(E)(2)(c). The Planning Commission and the Architectural Advisory Committee shall be tasked with reviewing the exterior storefront design subject to the criteria listed in Section 94.04.00(D), with respect to the following elements: 1) Exterior color and materials of the storefront; 2) Awnings (where applicable); 3) Proposed signage, with respect to construction, font, illumination, color, and location; 4) Exterior lighting; and 5) Landscaping (where applicable). 3. Internal Testing Facility—Accessory to a Permitted Cannabis Facility. An on-premises testing facility may be permitted accessory to a Medical or Adult Use Cannabis Cultivation Facility or a Medical or Adult Use Cannabis Manufacturing Facility for the purpose of internal testing of cannabis products grown or produced at the facility. The internal testing facility shall be subject to the following requirements: a. The testing results cannot be published or shared with the public or any third party. b. Testing shall be limited to cannabis products grown or produced at the facility. C. The area dedicated to the internal testing facility shall be clearly shown and identified on any floor plans submitted to the City for the cannabis facility. d. No additional entitlement is required for an accessory internal testing facility; however, environmental 30 Ordinance No. Page 14 analysis of the internal testing facility shall be performed as part of the environmental analysis for the associated cultivation or manufacturing use. e. Nothing in this Subsection (F)(3) shall be construed to limit the applicability of City regulations, including without limitation all provisions of Chapters 5.45 and 5.55 and any regulations promulgated by the City Manager pursuant thereto, to the colocation of the accessory internal testing facility. 4. Cannabis Lounge Facilities. Cannabis Lounge Facilities shall be subject to the following requirements: a. Separate Premises. Cannabis Lounge Facilities shall be located on a separate parcel or within a tenant space that is segregated and apart from any other use. A Cannabis Lounge Facility shall have a dedicated entrance from the street or public sidewalk, and shall have no internal connections or passage to any other tenant space or use. b. Sale of Cannabis and Cannabis Products. Medical or adult-use cannabis and medical or adult-use cannabis Products may be sold on the premises of a Cannabis Lounge, subject to the following: 1) The operator must hold an Adult-Use Dispensary permit: however, only the distance separation requirements for the Cannabis Lounge use shall be applicable to the facility. 2) All medical or adult-use cannabis and medical or adult-use cannabis products sold on the Premises must be smoked, inhaled, consumed or ingested on the premises. Cannabis and cannabis products shall not be sold or provided for off-site use. 3) The operator may permit patrons to bring their own personal cannabis or cannabis products to the Cannabis Lounge Facility. Patrons shall not be allowed to sell or otherwise distribute their cannabis or cannabis products to other patrons. All cannabis or cannabis products brought to the facility must be smoked, inhaled, consumed or Ordinance No. Page 15 ingested on site, and shall not be permitted to leave the facility. C. Smoking of Cannabis. The smoking of cannabis may be permitted at a Cannabis Lounge Facility, as may be allowable under state law. d. Alcohol and Tobacco Products. The sale or consumption of alcohol or tobacco products is not allowed on the premises. e. Minors. Access to the Cannabis Lounge Facility shall be restricted to persons twenty-one (21) years of age and older. f. Visibility. The smoking, inhalation, consumption or ingestion of cannabis or cannabis products shall not be visible from any public place or any area where minors may be present. The Cannabis Lounge shall be located within a completely enclosed building. q. Odor Control. 1) The operator of each Cannabis Lounge Facility shall provide adequate air filtration so as to Prevent any detectable odor from the exterior of the premises. Within twenty-four (24) hours of any complaint concerning odors 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 Building Official documenting any and all actions taken and planned to address the odor complaints. The Building Official, upon a determination of the continued existence of detectable odor from the facility, may require an operator to submit an implementation plan and/or a performance schedule, above and beyond this written disclosure filed within twenty-four (24) hours, to ensure the employment of measures to control the odor. 2) The Building Official shall have the authority to require an operator of a Cannabis Lounge Facility to amend any implementation plan and/or performance schedule submitted Z2 Ordinance No. Page 16 pursuant to this Subparagraph F.4.g to cause compliance herewith. 3) Any failure to timely submit a written disclosure, a more detailed implementation plan and/or performance schedule or amendment thereto, to timely adhere to the terms of either, or to complete any required improvements within the timeframe specified by the Building Official shall be grounds for revocation of the permit for the cannabis lounge facility. 3) Odors from a Cannabis Lounge Facility are identified as a public nuisance pursuant to PSMC Chapter 11 .72. The City may pursue all administrative, civil and criminal remedies identified in that chapter in relation to any nuisance determined to exist with respect to the operation of a cannabis lounge facility in violation of this Subparagraph F.4.g. ADOPTED this th day of 2017. ROBERT MOON MAYOR ATTEST: KATHLEEN D. HART, MMC INTERIM CITY CLERK 33 Ordinance No. Page 17 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on and adopted at a regular meeting of the City Council held on by the following vote: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN D. HART, MMC INTERIM CITY CLERK KATHLEEN D. HART, M '' d ORDINANCE NO. AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTERS 91, 92, AND 93 OF THE PALM SPRINGS ZONING CODE RELATIVE TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS FOR COMMERCIAL MEDICAL AND ADULT-USE CANNABIS FACILITIES (4/5ths VOTE REQUIRED). City Attorney Summary This Ordinance amends provisions of the City's Zoning Code to establish and amend zoning regulations for new Commercial Medical and Adult-Use Cannabis Facilities, as permitted under the Medical and Adult Use Cannabis Regulation and Safety Act. This interim urgency ordinance would be effective immediately upon adoption. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority granted the City by Sections 5 and 7 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations upon the use of land and property within the City. B. Pursuant to Article XI, Section 7 of the California Constitution, the City of Palm Springs may adopt and enforce ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its citizens. C. The Federal Government has issued guidelines for states and local govemments that have enacted laws authorizing cannabis-related conduct, requiring them to implement strong and effective regulatory and enforcement systems that will address the threat that medical and adult-use cannabis activity could pose to public safety, public health, and other law enforcement interests. D. On June 27, 2017, Governor Brown signed into law the Medical and Adult Use Cannabis Regulation and Safety Act("MAUCRSA"), legislation intended to provide and consolidate a comprehensive regulatory framework for licensing, control, and taxation of commercial medical and adult-use cannabis related businesses in California. MAUCRSA expressly protects a City's local licensing practices, zoning authority, and other local actions taken pursuant to the City's Constitutional municipal and police powers. State law, inclusive of MAUCRSA, contains statutory provisions that: 25 Ordinance No. Page 2 1. Allow local governments to enact ordinances expressing their intent to allow or prohibit the cultivation of cannabis and their intent to administer or not administer a conditional permit program pursuant to California Health and Safety Code section 11362.777 for the cultivation of cannabis; 2. Expressly provide that state law does not supersede or limit local authority for local law enforcement activity, enforcement of local ordinances or enforcement of local permit or licensing requirements regarding cannabis per California Business and Professions Code section 19315(a); 3. Expressly provide that state law does not limit the civil or administrative authority or remedies of a local government provision of law regarding cannabis including, but not limited to, a local government's right to make and to enforce within its limits all regulations not in conflict with general laws per California Business and Professions Code section 19316(c); 4. Specifically require, as a condition of state licensure, compliance with any and all local requirements for all cannabis-related operations. E. With that purpose, the City Council has adopted Chapters 5.45 and 5.55 of the Palm Springs Municipal Code to accommodate businesses allowing the commercial medical and adult use of cannabis while protecting the health, safety, and general welfare of the residents and businesses within incorporated areas of the City of Palm Springs in compliance with all applicable state law. F. It is the intent of the City Council to have a strong and effective regulatory and enforcement system with regard to commercial medical and adult- use cannabis that addresses identifiable challenges to public health, safety, and welfare, and advances law enforcement and community concerns through robust zoning controls and licensing procedures that are effective in practice. G. The City Council desires to establish reasonable zoning regulations and development standards related to commercial medical and adult-use cannabis related businesses which are intended to address the negative impacts and nuisance impacts associated with the uses. H. The City Council finds that the uses and activities permitted under this ordinance are consistent with and implement the goals and policies of the Palm Springs General Plan. I. The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 Cal. " 6 Ordinance No. Page 3 Code of Regulations, Chapter 3: 1. The ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a "project' under CEQA, and is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment; 2. The ordinance is exempt under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the administrative activity in question may have a significant effect on the environment. The commercial medical and adult-use cannabis businesses conforming to the various categories provided understate law and Palm Springs Municipal Code Chapters 5.45. and 5.55 will have environmental impacts that are similar to other farming, manufacturing, distribution, laboratory, and transportation and distribution activities already authorized within the City. The actual, potential, direct, indirect and cumulative environmental impacts of each of these businesses, if any, will be analyzed and mitigated, to the extent that any mitigation is required, on a project-by-project basis. Any identification of particular environmental impacts arising from or related to this administrative activity taken through this ordinance would be entirely speculative. Further, there is no possibility that this Ordinance would create cumulative impacts that are significant because this Ordinance does not authorize construction, development or other related activities or any other activities that are not already permitted, except that the ordinance allows the same activities but in relation to a different material (adult-use or commercial medical cannabis) that is being grown, sold, transported, or otherwise utilized in some form. There are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; and 3. The Ordinance is also exempt under CEQA Guidelines Section 15183 (projects consistent with existing zoning, the general plan, or a community plan) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning, such as agriculture, manufacture, and distribution of other agricultural products and/or products to be used as pharmaceuticals. J. The City Council makes the following findings as to the urgency of the adoption of this interim urgency ordinance: 17 Ordinance No. Page 4 1. The City Council adopted Ordinance 1933 on July 26, 2017, and the City's current regulations providing for permitting of commercial medical cannabis and adult-use cannabis businesses went into effect on August 25, 2017. Since that time, fourteen (14) businesses have applied for regulatory permits to operate in the City, in anticipation of the state finalizing its regulations and commencing to issue licenses. Throughout the application process, the City has placed applicants on notice that zoning and development standards have not yet been adopted by the City Council, and that each applicant is proceeding "at risk"with respect to its proposed location. Based upon City communications with applicants, uncertainty among applicants as to where certain medical and adult-use cannabis uses will be permitted, conditionally permitted, and prohibited has adversely impacted the ability of applicants to move forward with commitments regarding real estate, i.e., the specific location of a proposed cannabis use, and to commit resources to providing enhanced detail in applications being prepared. As a result, the City has determined that the absence of adopted zoning and development standards for cannabis uses is delaying the evolution of commercial medical and adult-use cannabis that advance the public health, safety and welfare. 2. Now that the voters of the City have approved Measure E, the City Council desires to consider and approve, with all possible speed, the zoning and development standards reflected in this interim urgency ordinance, which are identical to the zoning and development standards that will go into effect during January 2018 pursuant to the parallel "regular" introduced on even date with the adoption of this interim urgency ordinance. 3. The City will be ready to issue permits prior to January 2018. At least some permit-holders will be adversely impacted if the City has no zoning and development standards in place prior to that time. Again, with the voters' approval of Measure E, and the corresponding legislative reality that the City will be issuing permits under Chapters 5.45 and 5.55 of the Palm Springs Municipal Code, the City anticipates that many more applications will be filed in upcoming weeks. Adoption of this interim urgency ordinance will likely augment the number and enhance the quality of those applications, and will be the best means to advance the public health, safety and welfare insofar as they relate to the regulation and growth of the commercial medical and adult-use cannabis businesses in the City. ? 8 Ordinance No. Page 5 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. Palm Springs Zoning Code (PSZC) Section 91.00.10(B) is hereby amended to read: "Adult-Use Cannabis Dispensary" means a premises where Adult-Use Cannabis,Adult-Use Cannabis products, ordevices forAdult-Use Cannabis or Adult-Use Cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid adult-use cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Adult-Use Cannabis Facility" means any business or operation which engages in adult-use cannabis activity. "Cannabis Lounge" means a discrete facility where Medical or Adult Use Cannabis and Medical or Adult Use Cannabis products may be smoked or ingested within the confines of the facility. "Downtown" means that portion of the City within the boundaries of Aleio Road on the north, Ramon Road on the south, Belardo Road/Museum Drive on the west and Indian Canyon Drive on the east. This area includes both sides of Palm Canyon Drive, Amado Road, Andreas Road, Tahquitz Canyon Way, Arenas Road and Baristo Road within such boundaries. "Medical Cannabis Dispensary" means a premises where medical cannabis, medical cannabis product, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid medical cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Medical Cannabis Facility" means any business or operation which engages in medical cannabis activity. "Medical or Adult-Use Cannabis Transportation and Distribution Facility" means a facility for the procurement, sale, storage, transfer and transport of cannabis and cannabis products between entities licensed pursuant to this chapter. "Medical or Adult-Use Cannabis Cultivation Facility" means a an enGlesed facility where naedisal cannabis is cultivated and processed only for distribution to a licensed Medical or Adult-Use Cannabis SsNest+ve Facility. Ordinance No. Page 6 "Medical or Adult-Use Cannabis Manufacturing Facility" means a facility where cannabis is processed, extracted, or compounded into edible or topical products intended for consumption, inhalation, or topical application, including a facility that packages or repackages cannabis products, where the.operator holds a valid permit for manufacturing from the City of Palm Springs, and a valid state license as required by State Law for manufacturing. "Medical or Adult-Use Cannabis Testing Facility" means a facility, entity, or site that offers or performs testing of medical or adult-use cannabis, or medical or adult-use cannabis products and that is both of the following: 1. Accredited by an accrediting body that is independent from all other persons involved in any segment or aspect of the cannabis industry in the state; and 2. Registered with the California State Department of Public Health. "Premises" means the land and any structures erected on it or the defined space within a building assigned to a single occupancy. "Uptown" means that portion of the City within the boundaries of Aleio Road on the south, Vista Chino on the north, the west side of Palm Canyon Drive on the west, and Indian Canyon Drive on the east. SECTION 2. PSZC Section 92.09.01(A) is hereby amended to read: 32. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 3. PSZC Section 92.09.01(D) is hereby amended to read: 5. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 4. PSZC Section 92.12.01(A) is hereby amended to read: 34. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; Ordinance No. Page 7 (Following uses renumbered accordingly) SECTION 5. PSZC Section 92.12.01(D) is hereby amended to read: 7. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 6. PSZC Section 92.14.01(A) is hereby amended to read: 18. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; SECTION 7. PSZC Section 92.14.01 D is hereby amended to read: S O Y 5. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 8. PSZC Section 92.14.1.01(A) is hereby amended to read: 4. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 92.23.15 of this Code; SECTION 9. PSZC Section 92.14.1.01(D) is hereby amended to read: 4. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code: (Following uses renumbered accordingly) SECTION 10. PSZC Section 92.15.01(A) is hereby amended to read: ,Gal rRnnRhio e,,I*IVAtiAR fRnilitie G nme 2a. A!}ed' s, sobest t�—the Ft�T GGFnpliaRG8 With the PFGY!SqORS of Chapter 5.35 -of this Code-,- 2-221. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 22. Medical or adult-use cannabis transportation and distribution facility, 41 Ordinance No. Page 8 subject to the development standards contained in Section 93.23.15 of this Code; SECTION 11. PSZC Section 92.15.01(C) is hereby amended to eliminate the following use: 14. 11 AediGal r +nne tiro mnn„fn n4„rinn farility and mediGal rennabis testing faGilityr (Following uses renumbered accordingly) SECTION 12. PSZC Section 92.15.01(D) is hereby amended to read: 4. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 10. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 12. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 13. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 13. PSZC Section 92.16.01(A) is hereby amended to read: development standards rentained in Sertien 93 23 15 of this cede and GgMplianGe with the provisions of Chapter 5-35 of this ; &5. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 6. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code: SECTION 14. PSZC Section 92.16.01(C) is hereby amended to eliminate the following use: 4. Medical Gannabis men„fnrt„ring fnrilit„ and medirel r=annahio testing fadlity T 42 Ordinance No. Page 9 (Following uses renumbered accordingly) SECTION 15. PSZC Section 92.16.01(D) is hereby amended to read: 6. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 10. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 12. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 16. PSZC Section 92.17.01(A) is hereby to read: 7 PAP-d-itrnl nnnnnhis a10040-A f-AGiIRi96, subject try the—pFopertjF development rUentanned on SeGtqen 93.23.15 of this Cede and nemplianne with the nFe„ioieno of Ghapter 6 2-5 of+hies C-,Gde• , 7. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; 11. Services. i. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; SECTION 17. PSZC Section 92.17.01(C) is hereby amended to eliminate the following use: testingT (Following uses renumbered accordingly) SECTION 18. PSZC Section 92.17.01(D) is hereby amended to read: 7. Cannabis lounge, subject to the property development standards 43 Ordinance No. Page 10 contained in Section 93.23.15 of this Code; 16. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 17. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 18. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 19. PSZC Section 92.17.1.01(A) is hereby amended to read: 6. Medical oa„T a-'s GUItivation faGilities, subjeet to the pFepeFt development stand-ards r-,entatned OR SeGti0A 93.23.15 of this Code and Code,,- 7-.6. Medical cannabis dispensary or adult-use cannabis dispensary, subiect to the property development standards contained in Section 93.23.15 of this Code; 7. Medical or adult-use cannabis transportation and distribution facility, subiect to the development standards contained in Section 93.23.15 of this Code; SECTION 20. PSZC Section 92.17.1.01(C) is hereby amended to eliminate the following use: testing faGilityr SECTION 21. PSZC Section 92.17.1.01(D) is hereby amended to read: 6. Cannabis lounge, subiect to the property development standards contained in Section 93.23.15 of this Code; 14. Medical or adult-use cannabis cultivation facility, subiect to the development standards contained in Section 93.23.15 of this Code; 15. Medical or adult-use cannabis manufacturing facility, subiect to the development standards contained in Section 93.23.15 of this Code; 16. Medical or adult-use cannabis testing facility, subiect to the development standards contained in Section 93.23.15 of this Code: 44 Ordinance No. Page 11 (Other uses renumbered accordingly) SECTION 22. PSZC Section 92.17.2.01(A) is hereby amended to read: 7 Allpdinnl RRabis n„Itiyatinn fanilitins' .subjebt to the pFepefty develeffAeRt stand-aryls nnn#ninnrl in C`nntlon 93 23 15 of this Code and G9mplial;Ge with the provisions Gf Chapter 5.35 of this Go 7. Medical or adult-use cannabis transportation and distribution facility, subiect to the development standards contained in Section 93.23.15 of this Code; SECTION 23. PSZC Section 92.17.2.01(C) is hereby amended to eliminate the following use: testing SECTION 24. PSZC Section 92.17.2.01(D) is hereby amended to read: 10. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 12. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 25. PSZC Section 92.18.01(A) is hereby amended to read: n„ItiVatinn fnnilitin , to t n n v �-0. Nled�sal—sar�aab+s s, 'est�z —prepert, ; 44-.10. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; � 5 Ordinance No. Page 12 SECTION 26. PSZC Section 92.18.01(C) is hereby amended to read: 5. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code: (Following uses renumbered accordingly) SECTION 27. PSZC Section 93.23.15 is hereby amended to read: A. General Requirements. No land use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a Medical Cannabis Facility or an Adult Use Cannabis Facility shall be granted or permitted except in conformance with this Section. B. Regulatory Permit Required. Medical Cannabis Facilities and Adult Use Cannabis Facilities shall be permitted only upon application and approval of a regulatory permit in accordance with the criteria and process set forth in Chapter 5.35, Chapter 5.45 or Chapter 5.55 of this Code. Prior to initiating operations, and as a continuing requisite to conducting operations, the person or the legal representative of the person wishing to operate a Medical Cannabis Facility or an Adult Use Cannabis Facility, as those terms are defined in Section 91.00.10, shall secure a regulatory permit from the City Manager under the terms and conditions set forth in Chapter 5.35, Chapter 5.45, or Chapter 5.55 of this Code and shall otherwise fully comply with the provisions of this Section. C. Separation Distance Requirements. No Medical Cannabis Facilities or Adult Use Cannabis Facilities shall be established, developed or operated except in accordance with the separation distances listed in the table below. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest property line of the Property on which the Cannabis Facility is, or will be located, and to the nearest property line of those uses described in this Subsection. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.B. ." •r.�m� � 6araEionbis rR""u{se e�y' "' � .. t_. ,. . .3, i'�., �� rz t i AV�afp� Dortui � r � DrIYB,nr �<{p On } erelCh d C8 er #{55 �' -;{ &`� � 1 �° '� `o- , t ��1p�OWn �� }< � c r r• , i � t7 M ,Y�"ar � ram_« CL None None None None None 250 1000, MCCC I None None None None 250 250 500, MCD or AUD I 590'1000' 1 5W 1000' 1 1009 None I 2W 1 250' 1 500' 46 Ordinance No. Page 13 Se arat!on Distance Re ufremen#s. MCD or MF School P01l�" Public Playground MCD or AUp. TF Residential Use MCCC Cenydn Public Park AUD. (Downtown) CF Zone Uptown) TDF.-i Drive Day CarIChild Care YOUth tenter` None MCD or AUD 1000, 1000, 2000' N/A None 250' 500' Downtown/ Uptown) MF None None N/A None 250' 250' 500' TF None None N/A None 250' 250' 500' CF None None N/A None None Nene 250' Nene 500' TDF None None N/A one 250' 1 250' 1 500' List of Abbreviations: CL: Cannabis Lounge MCCC: Medical Cannabis Cooperative or Collective MCD: Medical Cannabis Dispensary AUD: Adult Use Dispensary MF. Medical or Adult Use Cannabis Manufacturing Facility TF: Medical or Adult Use Cannabis Testing Facility CF: Medical or Adult Use Cannabis Cultivation Facility TDF: Medical or Adult Use Transportation and Distribution Facility D. Accessory Uses: A Medical Cannabis Facility or an Adult Use Cannabis Facility is not and shall not be approved as an accessory use to any other use permitted by this Zoning Code. Medical Cannabis Facilities and Adult Use Cannabis Facilities may be located on the same parcel or on the same premises as otherwise permitted by this Zoning Code. E. Parking Requirements. Except within the E-1 Zone, where M-2 standards shall apply, Medical Cannabis and Adult Use Cannabis Facilities shall be parked at a rate of one (1) space for every three hundred (300) gross square feet of retail dispensary space or office space, and one (1) space for every eight hundred (800) gross square feet of warehouse/cultivation space. Cannabis Lounge facilities shall be parked at a rate of one (1) space for every three (3) seats, or one (1) space for every thirty-five (35) square feet where the public is served. Cannabis Lunge facilities within the "D" Downtown Parking Combining Zone may be parked at a rate of one (1) space for every four(4) seats, or one (1) space for every fifty (50) square feet where the public is served. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.13. F. Additional Requirements for Specific Cannabis Uses. 1. Medical Cannabis and Adult Use Cannabis Cultivation Facilities. Any Medical Cannabis or Adult Use Cannabis 47 Ordinance No. Page 14 Cultivation Facility in excess of ten thousand (10,000) square feet shall operate only within the E-1 or M-2 Zones. 2. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries. The following requirements shall apply to Medical Cannabis Dispensaries and Adult Use .Cannabis Dispensaries: a. Square Footage Restrictions — Downtown/Uptown. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries shall be limited to a maximum of one thousand five hundred (1,500) square feet in gross floor area on the street/ground level of any building in the defined Downtown/Uptown areas. Dispensaries (or portions thereof) located above the street/ground level shall be limited to a maximum of five thousand (5,000) square feet in gross floor area. b. Architectural Review. Medical Cannabis and Adult Use Cannabis Dispensaries shall be subject to Architectural Review by the Planning Commission, pursuant to Section 94.04.00(E)(2)(c). The Planning Commission and the Architectural Advisory Committee shall be tasked with reviewing the exterior storefront design subject to the criteria listed in Section 94.04.00(D), with respect to the following elements: 1) Exterior color and materials of the storefront; 2) Awnings (where applicable); 3) Proposed signage, with respect to construction, font, illumination, color, and location; 4) Exterior lighting; and 5) Landscaping (where applicable). 3. Internal Testing Facility—Accessory to a Permitted Cannabis Facility. An on-premises testing facility may be permitted accessory to a Medical or Adult Use Cannabis Cultivation Facility or a Medical or Adult Use Cannabis Manufacturing Facility for the purpose of internal testing of cannabis products grown or produced at the facility. The internal testing facility shall be subject to the following requirements: a. The testing results cannot be published or shared with the public or any third party. b. Testing shall be limited to cannabis products grown or produced at the facility. ii 8 Ordinance No. Page 15 C. The area dedicated to the internal testing facility shall be clearly shown and identified on any floor plans submitted to the City for the cannabis facility. d. No additional entitlement is required for an accessory internal testing facility; however, environmental analysis of the internal testing facility shall be performed as part of the environmental analysis for the associated cultivation or manufacturing use. e. Nothing in this Subsection (F)(3) shall be construed to limit the applicability of City regulations, including without limitation all provisions of Chapters 5.45 and 5.55 and any regulations promulgated by the City Manager pursuant thereto, to the colocation of the accessory internal testing facility. 4. Cannabis Lounge Facilities. Cannabis Lounge Facilities shall be subject to the following requirements: a. Separate Premises. Cannabis Lounge Facilities shall be located on a separate parcel or within a tenant space that is segregated and apart from any other use. A Cannabis Lounge Facility shall have a dedicated entrance from the street or public sidewalk, and shall have no internal connections or passage to any other tenant space or use. b. Sale of Cannabis and Cannabis Products. Medical or adult-use cannabis and medical or adult-use cannabis Products may be sold on the premises of a Cannabis Lounge, subject to the following: 1) The operator must hold an Adult-Use Dispensary permit; however, only the distance separation requirements for the Cannabis Lounge use shall be applicable to the facility. 2) All medical or adult-use cannabis and medical or adult-use cannabis products sold on the premises must be smoked, inhaled, consumed or ingested on the premises. Cannabis and cannabis products shall not be sold or provided for off-site use. 49 Ordinance No. Page 16 3) The operator may permit patrons to bring their own personal cannabis or cannabis products to the Cannabis Lounge Facility. Patrons shall not be allowed to sell or otherwise distribute their cannabis or cannabis products to other patrons. All cannabis or.cannabis products brought to the facility must be smoked, inhaled, consumed or ingested on site, and shall not be permitted to leave the facility. C. Smoking of Cannabis. The smoking of cannabis may be permitted at a Cannabis Lounge Facility, as may be allowable under state law. d. Alcohol and Tobacco Products. The sale or consumption of alcohol or tobacco products is not allowed on the premises. e. Minors. Access to the Cannabis Lounge Facility shall be restricted to persons twenty-one (21) vears of age and older. f. Visibility. The smoking, inhalation, consumption or ingestion of cannabis or cannabis products shall not be visible from any public place or any area where minors may be present. The Cannabis Lounge shall be located within a completely enclosed building. q. Odor Control. 1) The operator of each Cannabis Lounge Facility shall provide adequate air filtration so as to prevent any detectable odor from the exterior of the premises. Within twenty-four (24) hours of any complaint concerning odors 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 Building Official documenting any and all actions taken and planned to address the odor complaints. The Building Official, upon a determination of the continued existence of detectable odor from the facility, may require an operator to submit an implementation plan and/or a performance schedule, above and beyond this written disclosure filed within 50 Ordinance No. Page 17 twenty-four (24) hours, to ensure the employment of measures to control the odor. 2) The Building Official shall have the authority to require an operator of a Cannabis Lounge Facility to amend any implementation plan and/or performance schedule submitted pursuant to this Subparagraph F.4.g to cause compliance herewith. 3) Any failure to timely submit a written disclosure, a more detailed implementation plan and/or performance schedule or amendment thereto, to timely adhere to the terms of either, or to complete any required improvements within the timeframe specified by the Building Official shall be grounds for revocation of the permit for the cannabis lounge facility. 4) Odors from a Cannabis Lounge Facility are identified as a public nuisance pursuant to PSMC Chapter 11.72. The City may pursue all administrative, civil and criminal remedies identified in that chapter in relation to any nuisance determined to exist with respect to the operation of a cannabis lounge facility in violation of this Subparagraph F.4.g. SECTION 28. This Interim Urgency Ordinance is adopted based upon the true and correct Recitals above, including without limitation the findings stated therein, e.g., that adoption of this Interim Urgency Ordinance is consistent with, and implements the goals and policies of the General Plan, that this Interim Urgency Ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQK) for the reasons reflected in the recitals, that adoption of this Interim Urgency Ordinance is a matter of urgency and advances the public health, safety and welfare for the reasons reflected in the recitals, etc. SECTION 29. The adoption of this Interim Urgency Ordinance is necessary for the immediate protection of the public peace, health, and safety by ensuring the timely and orderly adoption of zoning and development standards applicable to commercial medical and adult-use cannabis uses in the City, and implementation of City policy adopted in Chapters 5.45 and 5.55 of the Palm Springs Municipal Code, and with the legal preferences of the People of the State of California as they pertain to the public health, safety and welfare, and providing for an orderly and balanced transition to the effective date of the City's new "regular" ordinance, Ordinance No. providing cannabis zoning and 51 Ordinance No. Page 18 development standards, which is equivalent in content to this Interim Urgency Ordinance, and is introduced on even date herewith. The City's failure to adopt this Interim Urgency Ordinance would adversely affect the public health and welfare of residents, and impair businesses in the City. In accordance with Section 312 of the Palm Springs City Charter, the City Council of the City of Palm Springs finds and determines that the adoption of this Interim Urgency Ordinance is necessary to ensure the immediate protection of the public peace, health, and safety. SECTION 29. This Interim Urgency Ordinance shall be effective until January 31, 2018, or until it is superseded on the effective date of Ordinance No. whichever comes first. SECTION 30. The City Council hereby declares, on the basis of the findings set forth in the Recitals and in Section 28 above, incorporated by this reference herein, that an urgency ordinance is warranted and that this Interim Urgency Ordinance is necessary to preserve the public peace, health and safety. Accordingly, this Interim Urgency Ordinance is adopted as such, and shall take effect and be in force immediately upon its adoption. This Interim Urgency Ordinance shall expire on January 31, 2018, unless superseded sooner, on the effective date of Ordinance No. , or extended by action of the City Council prior to such date. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS DAY OF 2017. ROBERT MOON MAYOR ATTEST: KATHLEEN D. HART, MMC INTERIM CITY CLERK 52 Ordinance No. Page 19 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on and adopted at a regular meeting of the City Council held on by the following vote: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN D. HART, MMC INTERIM CITY CLERK .: 3 �04pPtMsp� Y 'N PLANNING COMMISSION STAFF REPORT cq(1F0 % DATE: October 11, 2017 PUBLIC HEARING SUBJECT: PROPOSED ORDINANCE TO AMEND THE PALMS SPRINGS ZONING CODE (PSZC) RELATING TO REQUIREMENTS FOR ADULT USE CANNABIS FACILITIES AND MEDICAL CANNABIS FACILITIES (CASE 5.1218-F ZTA). FROM: Department of Planning Services SUMMARY: This is a request to amend the Palm Springs Zoning Code (PSZC) to establish zoning requirements for Adult Use Cannabis Facilities and to make minor modifications to the requirements for Medical Cannabis Facilities. The ordinance proposes the following: • Establish zoning districts where Adult Use Cannabis Facilities may be located; • Institute limits for the number of dispensaries by Census tract, as well as maintaining the separation distance requirement between individual dispensaries; • Allow Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries in the CBD (Central Business District) and C-1 (Retail Business Zone) districts upon approval of a Conditional Use Permit; and • Require architectural review of storefronts and signage for all Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries. RECOMMENDATION: Open the public hearing and forward recommendations to the City Council. BACKGROUND INFORMATION: Related Relevant City Actions The City Council adopted Ordinance No. 1758, which established 03/04/09 zoning requirements for Medical Cannabis Cooperatives and Collectives. 02/03/10 The City Council adopted Ordinance No. 1766, modifying zoning re uirements for Medical Cannabis Cooperatives and Collectives. �4 Planning Commission Staff Report Case 5.1218-F October 11, 2017—Page 2 of 7 Related Relevant City Actions The City Council adopted Ordinance No. 1845, revising the permitting 03/05/14 requirements for Medical Cannabis Cooperatives and Collectives, and increasing the number of permitted facilities. The City Council adopted Ordinance No. 1876, establishing locational 05120/15 standards for Medical Cannabis Cultivation Facilities and expanding the zoning districts where Medical Cannabis Cooperatives and Collectives are permitted. The City Council adopted Ordinance No. 1908, establishing zoning 12/14/16 requirements for Medical Cannabis Dispensaries, Medical Cannabis Manufacturing Facilities, Medical Cannabis Testing Facilities, and allowing certain medical cannabis uses in the E-1 zone 03/01/17 The City Council adopted Ordinance No. 1916, establishing separation distance requirements between Medical Cannabis Dispensaries. The City Council adopted Ordinance No. 1933, amending the 07/26/17 Municipal Code to add permitting requirements for Adult Use Cannabis-related businesses and making minor modifications to the requirements for Medical Cannabis businesses. On June 27, 2017, Governor Brown signed into law the Medical and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") which consisted of legislation (SB94) intended to provide a comprehensive regulatory framework for the licensing, control, and taxation of medical and adult-use cannabis related businesses in California. MAUCRSA expressly protects a City's local licensing practices and zoning authority, and allows local governments to enact ordinances relative to allowing or prohibiting cannabis-related businesses and activities. The act also requires compliance with any and all local requirements for cannabis-related operations as a condition of state licensure. In response to the adoption of MAUCRSA, the City Council adopted Ordinance No. 1933 on July 26, 2017,which made amendments to Chapter 5.45 of the Palm Springs Municipal Code (PSMC) relative to Medical Cannabis-related business activities, and established Chapter 5.55 for the regulation of Adult Use Cannabis Facilities. With the adoption of business regulations for Adult Use Cannabis Facilities, zoning regulations must also be established to provide locational standards and development requirements for the uses. ANALYSIS: With the adoption of permit requirements for Adult Use Cannabis Facilities, the City Council has directed staff to prepare a Zone Text Amendment to establish zoning requirements for the facilities. The City Council Cannabis Subcommittee specifically requested staff to address the following: • Determine zoning districts where Adult Use Cannabis Facilities may be located; • Allow dispensaries in the CBD (Central Business District)zone upon approval of a Conditional Use Permit, but limit the square footage at the street level similar to r� Planning Commission Staff Report Case 5.1218-F October 11, 2017— Page 3 of 7 the limitations placed on office uses; • Allow dispensaries in the C-1 (Retail Business Zone) district upon approval of a Conditional Use Permit; • Prevent an over-concentration of dispensaries by limiting the number in each Census tract based upon population; • Require architectural review for dispensary storefronts as a means to New Cannabis-Related Use Categories— Proposed Zoning Districts: Based on the permit categories created under MAUCRSA and included in Chapters 5.45 and 5.55 of the Municipal Code, the following uses would be added to the Zoning Code: • Adult Use Cannabis Dispensary • Adult Use Cannabis Cultivation Facility • Adult Use Cannabis Manufacturing Facility • Adult Use Cannabis Testing Facility • Adult Use Cannabis Transportation and Distribution Facility • Medical Use Cannabis Transportation and Distribution Facility The table below identifies the zoning districts where the new cannabis-related uses would be permitted: Tablel1: Zoning Districts Use CBD C-1 C-2 HC C-M M-1 M•1 M-2 E-I A Medical Cannabis Cooperative P P P P P P P or Collectives Medical or Adult Use Cannabis CUP CUP P P P P P P P Dispensary — — Medical or Adult Use Cannabis R P P R P- P Cultivation Facility CUP CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LUP 1.1l WR WR Lk►R Manufacturing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LUR WP WP WP pip Testing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis Transportation & Distribution P P P P P P Facility _�_-- I — — — — — — List of Abbreviations P=Permitted Use LUP=Land Use Permit CUP=Conditional Use Permit Underline: is added;sfraskon fax is removed In addition to the inclusion of new cannabis-related use categories, it is proposed that the approval process for certain uses be revised to become discretionary reviews. As proposed, a Conditional Use Permit would be required for all Cultivation Facilities, V J Planning Commission Staff Report Case 5.1218-F October 11, 2017-Page 4 of 7 Manufacturing Facilities, and Testing Facilities as a means to incorporate a CEQA review, as those uses may have environmental impacts. In addition, it is proposed that a Conditional Use Permit be required for the dispensary use in the CBD and C-1 zoning districts, as a means to assess impacts to adjacent businesses and properties. Separation Distance Requirements: No significant changes are proposed to the existing separation distance requirements for cannabis-related uses. With the allowance of dispensaries in the CBD and C-1 zoning districts, it is proposed that the separation distance requirement from Palm Canyon Drive be eliminated for that specific use. Separation distance requirements would be established for the new uses (Adult Use Dispensary - Accessory Use and Medical or Adult Use Transportation and Distribution Facility), and would mirror the separation requirements for the uses currently in existence. The table below summarizes the proposed separation distance requirements. Table 2: Se aration Distance Requirements MF i School Palm Public Playground AUD Use MCCC MCD or TF Canyon Residential public Park i CF Drive zone Day Care/Child Care Youth Center MCCC None None None 250' 250' 500' MCD or AUD 500, 500' None 2�% None 250' 500' MF None None None 250' 250' 500, TF None None None 250' 250' 500, CF None None None None None None None None N-v1i 259 250' 500' List of Abbrevialions: MCCC: Medical Cannabis Cooperative or Collective MCD. Medical Cannabis Dispensary AUD. Adult Use Dispensary AUD-Accessory Use: Adult Use Dispensary as an Accessory Use MF. Medical or Adult Use Cannabis Manufacturing Facility TF.- Medical or Adult Use Cannabis Testing Facility CF: Medical or Adult Use Cannabis Cultivation Facility TDF. Medical or Adult Use Transportation and Distribution Facility Underlined te,_ is added; . - r-- ,r,=r is removed Dispensaries- Limitation by Census Tract: As part of the direction from City Council, staff was requested to investigate limiting dispensaries by Census tract, similar to the method used by the California Department of Alcoholic Beverage Control (ABC) for limiting alcohol licenses. The limitation by Census tract would be in addition to the 500-foot separation distance required between individual dispensaries. The purpose of having both methods in place is to prevent a concentration of dispensaries in any one area, as well as encouraging the distribution of dispensaries equally across the city. . .7 Planning Commission Staff Report Case 5.1218-F October 11, 2017—Page 5 of 7 The model used by ABC establishes a maximum number of on-sale and off-sale alcohol licenses based on the population of each Census tract. ABC has adopted the following standard in issuing on-sale and off-sale alcohol licenses: • On-Sale General License: One license per each 2,000 inhabitants (or fraction thereof) • Off-Sale General License: One License per each 2,500 inhabitants (or fraction thereof) Staff would propose to use a similar model that limits the maximum number of dispensaries in each Census tract based upon population. Using the same methodology, it is proposed that one dispensary be allowed per 2,500 inhabitants or fraction thereof. The table below lists the Census tracts and proposed number of dispensaries allowed; a map has been included as an attachment to this report, showing the location and boundaries of each Census tract. _ Table 3. Dispensaries by Census Tract _ Census Tract Po ulation Maximum # Permitted 445.20 1,704 1 445.22 4,876 2 446.02 2,907 2 446.04 4,320 2 446.05 4,803 2 446.06 2,852 2 447.01 3,555 2 447.02 2,295 1 448.04 2,850 2 448.05 1,701 1 448.06 1,982 T 1 448,07 1,281 1 449.04 4,543 1 9405 2,208 1 9407 2,613 2 9408 2,613 2 9410 3,812 2 9411 2,051 0* 9412 2,205 1 9413 3,300 2 9414 3,179 2 *Proposed adjustment to the number of dispensaries allowed based upon tract characteristics. It is important to note that Census tracts are not coterminous with City boundaries, and adjustments may be required to account for the population disparity. For example, Census Tract #449.04, which has a population of 4,543 residents, is proposed to have one dispensary as the majority of the population in the tract is located in the jurisdiction of Cathedral City. Similarly, the majority of Census Tract#9411 is within the boundaries 58 Planning Commission Staff Report Case 5.1218-F October 11, 2017—Page 6 of 7 of Cathedral City, and the only portion within the City of Palm Springs is zoned for residential uses, eliminating the possibility for locating a dispensary within that tract. While the table above identifies the maximum number of dispensaries that could be permitted in the City of Palm Springs, the actual number of dispensaries will most likely be less. This is due to the combined factors of separation distance requirements and availability of suitable zoning for cannabis-related uses in each Census tract. The combined zoning tools of separation distance requirements and Census tract limitations will prevent an over-saturation of dispensaries in any one area of the city. Architectural Review—Disoensary Storefronts. A proposed addition to the general standards for cannabis-related uses contained in PSZC Section 93.23.15 is the requirement to review storefronts for dispensary operations through the Architectural Review process. Applicants would be required to file a Minor Architectural Application, which would be reviewed by both the Architectural Advisory Committee (AAC) and the Planning Commission. In addition to reviewing the storefronts for conformance to the standard criteria contained in PSZC Section 94.04.00(D),the AAC and Planning Commission would specifically review the following elements of the storefront: • Exterior colors and materials, including doors and windows; • Awnings; • Exterior lighting; • Landscaping (where applicable); and • Proposed signage, with respect to materials, color, illumination, font, and location on the facade of the building. It is only proposed that dispensaries be subject to the Architectural Review process; other cannabis-related businesses would not need to go through the Architectural Review process, unless otherwise required for new construction or renovations. ENVIRONMENTAL ANALYSIS: Pursuant to the California Environmental Quality Act (CEQA) Guidelines, the proposed zone Text Amendment has been deemed a "project." Staff has determined that the proposed Zone Text Amendment(Case 5.1218-F) may be deemed Categorically Exempt from the provisions of CEQA under Section 15305 (Minor Alterations in Land Use Limitations) of the Guidelines. The proposed Zone Text Amendment only proposes insignificant changes to land use regulations. NOTIFICATION: A public hearing notice was published in accordance with the requirements of State law and local ordinance. 59 Planning Commission Staff Report Case 5.1218-F October 11, 2017—Page 7 of 7 il�� 11H n n Fagg, AICP Director of Planning Services ATTACHMENTS: 1. Draft Regulations 2. Census Tract Map 3. Ordinance No. 1933 (Chapter 5.45 and Chapter 5.55 of the Municipal Code) 60 Attachment#1: Proposed Amendments — Adult Use Cannabis Facilities PSZC Chapter 91.00.10 Definitions. Adult Use Cannabis Facility means any business or operation which engages in adult use cannabis activity. Medical Cannabis Facility means any business or operation which engages in medical cannabis activity. PSZC Chapter 92 — Permitted Uses. Zoning Districts Use CBD C-1 C-2 HC C-M MP- M-1 M-2 E-1 A __ Medical Cannabis Cooperative p P P P P P P or Collectives Medical or Adult Use Cannabis CUP CUP P P P P P P P Dispensary Medical or Adult Use Cannabis P R R R P P Cultivation Facility CUP CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LJJP pip WR LUR WP Manufacturing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LUP WR WP LUR WR Testing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis Transportation &Distribution P P P P P P Facilit List of Abbreviations: P =Permitted Use LUP=Land Use Permit CUP= Conditional Use Permit is added, _!. , .:,; ; ,,is removed PSZC 93.23.15 Special Standards for Specified Medical Cannabis Facilities. A. General Requirements. No land use entitlement, permit(including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a Medical Cannabis Facility or an Adult Use Cannabis Facility shall be granted or permitted except in conformance with this Section. B. Regulatory Permit Required. Medical Cannabis Facilities and Adult Use Cannabis Facilities shall be permitted only upon application and approval of a regulatory permit in accordance with the criteria and process set forth in Chapter 5.35, Chapter 5.45 or 11 October 2017 Page 1 5 �: L Chapter 5.55 of this Code. Prior to initiating operations and as a continuing requisite to conducting operations, the person or the legal representative of the person wishing to operate a Medical Cannabis Facility or an Adult Use Cannabis Facility, as those terms are defined in Section 91.00.10, shall secure a regulatory permit from the City Manager under the terms and conditions set forth in Chapter 5.35, Chapter 5.45, or Chapter 5.55 of this Code and shall otherwise fully comply with the provisions of this Section. C. Separation Distance Requirements. No Medical Cannabis Facilities or Adult Use Cannabis Facilities shall be established, developed or operated except in accordance with the separation distances listed in the table below. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest property line of the property on which the Medical Cannabis Facility or Adult Use Cannabis Facility is, or will be located, and to the nearest property line of those uses described in this Subsection. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.13. Table 2: Separation Distance Requirements MF Palm School CD or TF Residential Public Playground M Use MCCC CD CF Canyon I Zone Public Park TDF Drive I Day Care/Child Care Youth Center MCCC None None None 1 250' 250' 500' MCD or AUD 500' 500' None 2W N. r 250' 500' MF None None None 250' 1 250' 500, TF None None - None 259 250' 500' CF None ! None None None None None -DF None k'JL�d I Nb'1 I 250' 250' S00' List of Abbreviations: MCCC: Medical Cannabis Cooperative or Collective MCD: Medical Cannabis Dispensary AUD: Adult Use Dispensary MF: Medical or Adult Use Cannabis Manufacturing Facility TF: Medical or Adult Use Cannabis Testing Facility CF: Medical or Adult Use Cannabis Cultivation Facility TDF: Medical or Adult Use Transportation and Distribution Facility D. Accessory Uses: A Medical Cannabis Facility or an Adult Use Cannabis Facility is not and shall not be approved as an accessory use to any other use permitted by this Zoning Code. Medical Cannabis Facilities and Adult Use Cannabis Facilities may be located on the same parcel or on the same premises as otherwise permitted by this Zoning Code. E. Parking Requirements. Except within the E-1 Zone, where M-2 standards shall apply, Medical Cannabis and Adult Use Cannabis Facilities shall be parked at a rate of one (1) space for every three hundred (300) gross square feet of retail dispensary space or office space, and one (1) space for every eight hundred (800) gross square feet of 11 October 2017 Page 2 L 4 warehouse/cultivation space. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.13. F. Signage Requirements. In addition to the size and area limitations specified in this Chapter, signage for Medical Cannabis Facilities and Adult Use Cannabis Facilities shall be subject to the additional restrictions contained in Chapter 5.35, Chapter 5.45, and Chapter 5.55 of this Code. G. Additional Requirements for Specific Cannabis Uses. 1. Medical Cannabis and Adult Use Cannabis Cultivation Facilities. Any Medical Cannabis or Adult Use Cannabis Cultivation Facility in excess of ten thousand (10,000) square feet shall operate only within the E-1 or M-2 Zones. 2. Medical Cannabis and Adult Use Cannabis Dispensaries. a. Maximum Number Permitted. In addition to the applicable separation distance requirements and locational restrictions listed in this Code, Medical Cannabis and Adult Use Cannabis Dispensaries shall be further limited by Census Tract. The following table lists the maximum number of Dispensaries that are permitted within each Census Tract in the City of Palm Springs: Di s ensaries by Census Tract Census Tract Population Maximum #_Permitted 445.20 1,704- 1 445.22 4,876 2 _ 446.02 2,907 -� 2 446.04 - - — 4,320 _ 2 446.05 4,803 2 446.06 2,852 2 447.01 3,555 2 447.02 2,295 1 448.04 2,850 2 448.05 1,701 1 448.06 1,982 1 448.07 1,281 1 449.04 4,543 1' 9405 2,208 1 9407 2,613 2 9408 2,613 _ 2 9410 3,812 T 2 9411 2,051 0* 9412 2,205 1 9413 3,300 2 11 October 2017 Page 3 63 Dispensarles by Census Tract Census Tract Population Maximum #Permitted 9414 3,179 2 'Proposed adjustment to the number of dispensaries allowed based upon tract characteristics. b. Square Footage Restrictions — CBD Zone. Medical Cannabis and Adult Use Cannabis Dispensaries shall be limited to a maximum of one thousand five hundred (1,500) square feet in gross floor area on the street/ground level of any building in the CBD Zone. Dispensaries (or portions thereof) located above the street/ground level shall not be subject to the square footage restriction. C. Architectural Review. Medical Cannabis and Adult Use Cannabis Dispensaries shall be subject to Architectural Review by the Planning Commission, pursuant to Section 94.04.00(E)(2)(c). The Planning Commission and the Architectural Advisory Committee shall be tasked with reviewing the exterior storefront design subject to the criteria listed in Section 94.04.00(D), with respect to the following elements: 1) Exterior color and materials of the storefront; 2) Awnings (where applicable); 2) Proposed signage, with respect to construction, font, illumination, color, and location; 3) Exterior lighting; and 4) Landscaping (where applicable), 11 October 2017 Page 4 U A 39 m 445.21 445.22 4,B76 _ ,0 44520 _ _ f ta04 4.su ` 44s 06 446.05 2,852 41003 446.04 •.�� 9413 4,320 3.300 ° 446.02 .9412 2,907 2.205 9414 447.01 4472 2 3,179 3,555 -, ,295 li 3 .r aa"0, 1.962: 9407 j 448.04 448.05 2,613 2,850 E � 1,701 it /l 'S Census Tract 9405 9408 .9410 2010 Population 2,208 2,613 3,812 �� " � Carhedral Cir ,M8.074 , r, Legend -i • ; (Q Census Tract Boundaries ° I L1J�J Ci ty Area N o� City of Palm Springs Department of Planning Services U 5 EXCERPT OF MINUTES At the study session of the Planning Commission of the City of Palm Springs, held October 11, 2017, the Planning Commission took the following action: 2. CITY OF PALM SPRINGS FOR A ZONE TEXT AMENDMENT TO THE PALM SPRINGS ZONING CODE RELATING TO ADULT USE CANNABIS FACILITIES. (CASE 5.1218-F). Planning Director Fagg gave a presentation on the draft ordinance. Chair Weremiuk opened the item for public comment. JOY BROWN MEREDITH noted that she represents both the MainStreet organization and is also the owner of a cooperative/collective. She stated that allowing dispensaries downtown will result in an increase in rents and may impact merchants. She indicated that allowing cannabis-related uses in industrial areas had the result of increasing rents, and many industrial businesses were having to move out of town to cheaper locations. Ms. Meredith also expressed concern that the proposal to base the number of dispensaries on Census tracts would allow too many dispensaries, and that the ordinance was moving too quickly through Planning Commission and City Council without input from stakeholders. JAMES CAMPER stated that he concurred with Ms. Meredith, and that allowing dispensaries by Census tract at a ratio of 1 per 2,500 residents would result in too many dispensaries. He noted issues with oversaturation in Cathedral City, and expressed concern about the viability of existing cooperatives/collectives. The Planning Commissioners discussed the proposal to allow dispensaries in the CBD and C-1 zoning districts. Mr. Hudson commented that in Cathedral City, the cannabis businesses have driven the design-related businesses out of the Perez Road corridor. He expressed concern that dispensaries might have a similar effect in the Uptown District. Commissioner Middleton stated that it may be appropriate to allow dispensaries in the downtown area in the future, but not immediately. Vice Chair Calerdine noted a concern that if the dispensaries were to be shut down by the federal government, it would leave vacant storefronts; in addition, he cautioned that the permitting of dispensaries should occur as a slow expansion. Commissioner Donenfeld also expressed a need to move deliberately in permitting dispensaries, rather than allowing a large number all at once. Chair Weremiuk thought that dispensaries should be located in emerging or redeveloping retail areas, rather than in established areas. While she did not think there was any need to "hide" dispensaries away from shopping districts, she concurred with the other commissioners that the licensing of dispensaries should proceed in a controlled manner. The commission also expressed support for the requirement for Conditional Use Permit approval for dispensaries in all zoning districts. U6 Planning Commission Minutes-Excerpt City of Palm Springs October 11,2017—Study Session The commission discussed the proposal to limit the overall number of dispensaries by Census tract, and felt that the proposal allowed too many dispensaries. Vice Chair Calerdine questioned if there would be a better districting system based on commercial districts. Chair Weremiuk asked how many cooperatives/collectives were currently in operation, and suggested that a better way to limit dispensaries would be as a ratio of the population. Commissioner Middleton concurred with the suggestion, and stated that it might be better to limit dispensaries to 1/8,000 residents, and may be expanding to 1/5,000 residents at a later date. Commissioner Donenfeld agreed that it was better to phase in dispensaries over time, rather than using the Census tract model. The Planning Commissioners also reviewed other commercial districts (P, CSC, CDN, C- 1AA) where dispensaries may be permissible. In reviewing the specific locations, the commission determined that these areas would not be appropriate for dispensaries. The commissioners discussed the proposed requirement for architectural review for dispensaries, and supported the requirement provided the Planning Commission had an opportunity to review the storefronts in addition to the AAC. The Planning Commission reviewed the proposed separation distance requirements, and supported the requirements as proposed for the new medical and adult-use cannabis transportation and distribution use. In addition, they recommended that separation distance requirements be added for cultivation uses. The commissioners verified that the separation distance requirements would not prevent cultivation, manufacturing and dispensaries from being located on the same site. Staff presented the draft regulations for on-site consumption of cannabis products to the Planning Commission for consideration. Chair Weremiuk expressed concern about the activity occurring in restaurants were children would be present, questioned how adequate protections could be put in place to protect patrons, and stated that it was bad policy. She stated that she might be in support of an arrangement where the use was limited to adults only and no presence of alcohol. Commissioner Donenfeld concurred with Chair Weremiuk, also expressing the concerns about public safety. Commissioner Middleton supported the idea of an adults-only smoking room or social club, but thought the idea should be pursued at some point in the future, and wanted to see the effectiveness of the adult-use cannabis regulations first. There being no further questions on the matter, the Chair concluded discussion on the item. ACTION: No action taken; discussion item only. Planning Commission Minutes-Excerpt City of Palm Springs October 11,2017—Study Session I, TERRI HINTZ, Planning Administrative Coordinator for the City of Palm Springs, hereby certify that the above action was taken by Planning Commission of the City of Palm Springs on the 1 V day of October, 2017, by the following vote: AYES: N/A NOES: N/A ABSENT: Hirschbein, Lowe Terri Hintz Planning Administrative Coordinator 3 � $ EXCERPT OF MINUTES At the Planning Commission meeting of the City of Palm Springs, held October 11, 2017, the Planning Commission took the following action: 2B. CITY OF PALM SPRINGS FOR A ZONE TEXT AMENDMENT TO THE PALM SPRINGS ZONING CODE RELATING TO THE DEVELOPMENT STANDARDS AND LOCATIONAL STANDARDS FOR MEDICAL USE CANNABIS FACILITIES AND ADULT USE CANNABIS FACILITIES (CASE 5.1218-F). Planning Director Fagg provided an overview of the draft ordinance, and also provided a summary of the discussion of the Planning Commission from the study session earlier in the morning. Chair Weremiuk opened the public hearing: JAMES CAMPER questioned the proposed ratio of one dispensary for every 2,500 residents in each census tract, and referenced the over-saturation of dispensaries in Cathedral City. SUSAN BRADLEY, speaking on behalf of Lonnie Swerdlow who was unable to attend, summarized the letter that had been submitted into the record requesting that consideration be given to the on-site consumption of cannabis products. Ms. Bradley urged the commission to consider on-site consumption. VICTORIA NEWBILL cited the Cannabis Cafe in Portland, Oregon, as an example of successful business with on-site consumption of cannabis products, and requested that the commission consider the use. JOY BROWN MEREDITH, representing the MainStreet organization, noted that rents downtown will increase if dispensaries are allowed, and stated that she was opposed to the number of dispensaries that would be permitted under the Census tract proposal. She also expressed concern about the speed at which the proposed ordinance was going through the public hearing process, and was noted that neither the downtown merchants nor the six existing permittees had been advised or consulted on the ordinance. She stated that she was in support of on- site consumption. The commission their recommendations from the study session on the matter of adult-use cannabis zoning regulations: • Do not allow dispensaries in the CBD and C-1 zoning districts at this time. • Require CUP approval for dispensaries in all other zoning districts where allowed, with the Planning Commission to review security plans. C9 Planning Commission Minutes-Excerpt City of Palm Springs October 11,2017 • Do not use the Census tract method for limiting dispensaries; limit dispensaries based on population at a ratio of 1 dispensary per 8,000 residents, with the possibility of decreasing the ratio at a future date. • Implement separation distance requirements for cultivation uses. • Require a CUP for cultivation, manufacturing and testing in all zoning districts where allowed. • Do not allow on-site consumption of cannabis products at this time, due to concerns about maintaining safety for families and separation from alcohol service. In the future, consider separate age-restricted facilities where social consumption of cannabis products could occur. Vice Chair Calerdine suggested that the concept of "cannabis clubs" should be explored, but would request that the Police Department be consulted for issues of public safety. Commissioner Donenfeld stated that it may be appropriate down the line to consider on-site consumption in a restricted setting, but cautioned that adult- use cannabis permitting should occur in small steps, and that it was not necessary to have all adult-use facilities available in January of 2018. Vice Chair Calerdine recommended that the issue of dispensaries in CBD and C- 1 be reviewed in 24 months, and that the issue needed further study and input from stakeholders. He also stated that the dispensaries should be limited to a finite number, and did not support the proposal to limit by Census tracts. Chair Weremiuk stated that the dispensary limitation based on population could be implemented at 1 per 8,000 residents and later decreased to 1 per 5,000 residents once there was experience with the effectiveness of the new adult-use regulations. She also stated that instead of allowing on-site consumption as an auxiliary use, allow it as part of a microbusiness that is age-restricted as a means to address concerns about child safety and separation from alcohol. She also encouraged the City Council to discuss the proposed ordinance with the six existing permittees. Motion: Commissioner Donenfeld, seconded by Vice Chair Calerdine to recommend approval, as amended. I, TERRI HINTZ, Planning Administrative Coordinator for the City of Palm Springs, hereby certify that the above action was taken by Planning Commission of the City of Palm Springs on the 1 P day of October, 2017, by the following vote: AYES: Donenfeld, Hudson, Middleton, Vice Chair Calerdine, Chair Weremiuk NOES: None ABSENT: Hirschbein, Lowe 2d Planning Commission Minutes-Excerpt City of Palm Springs October 11,2017 Terri Hintz Planning Administrative Coordinator 3 Lanny Swerdlow, RN LNC PO Box 918, Cabazon CA 92230 951-849-2040 IannyswerdlowrnCcDyahoo.com I To: Palm Springs Planning Commission October 11, 2017 Request for the Issuance of Permits Allowing the On-Site Consumption of Cannabis With the passage of Prop. 64, the California electorate recognized that cannabis has additional value to it use as a medicine and legalized it for any adult-use which is often referred to as recreational. As a Registered Nurse I consider its recreational use to be its most valuable attribute. This recreational value is the ability of marijuana to be an effective and enjoyable substitute for alcohol. Along with a copy of this presentation, there is a copy of an article I wrote for Culture magazine entitled Safer and Enjoyable Cannabis Lmvers Alcohol Consumption. It clearly and succinctly explains the dangers of alcohol consumption and explains why marijuana is an effective substitute and backs up that assertion with peer- reviewed evidentiary based scientific research. Prop. 64 recognizes that people want to enjoy cannabis in a social setting the same as they do alcohol and provides for communities to allow this use. Prop. 64 Chapter 20 Section 26200(d) permits, with specific restrictions,that "o local jurisdiction may allow for the smoking, vaporizing, and ingesting of mar�ivana or mar�uana products on the premises ol'a retailer or rnicrobusiness licensed under this division. " Note one of the restrictions is that alcohol and tobacco cannot be consumed at the same location as cannabis. Allowing on-site consumption of marijuana will have financial benefits for many businesses. Providing for an area where on-site consumption is permitted in a restaurant will not only make a patron's meal more enjoyable but will increase the likelihood of patrons ordering desert thereby significantly elevating a restaurant operator's revenue. Allowing the operation of CannaClubs will be of immense benefit to the individual and the community. Having access to a club where dancing or entertainment is provided and cannabis, but not alcohol, can be consumed ,,vill lessen the individual's exposure to the negative health consequences of alcohol and reduce the dangers and damages to the community from its use, The negative health consequences to the individual and dangers to the community from marijuana consumption diminish almost to insignificance compared to the 80,000 deaths annually attributed to alcohol consumption and the estimated $250 billion yearly price tag of the deaths, disease, accidents and loss of productivity it causes. I strongly urge the inclusion of procedures and necessary regulations in the proposed ordinance for the Palm Springs City Council to allow for the issuance of microbusiness licenses specifically tailored to allow on-site consumption of cannabis but no cultivation,manufacture or sales. Rc spectfully submitted by Lannv Swerdlow, RN LNC Submitted to Planning Commission OCT 112017 '� 2 Safer and Enjoyable Cannabis Lowers Alcohol Consumption Lanny Swerdlow, RN LNC People love to alter their consciousness. They have been doing so for so long it is plausible humans have evolved a genetic propensity to seek out consciousness altering substances. For most of recorded human history,the chosen substance has been alcohol- a choice that has been a disaster of gargantuan proportions. As a RN providing care in hospitals, I hardly had a single shift in which I was not providing care to at least one patient in a hospital bed due to their use of alcohol - more than one was par for the course. Cirrhosis of the liver, deteriorating heart muscle,pancreatitis, cancer and dementia are just the tip of iceberg of over 60 diseases related to alcohol consumption. In addition to killing 88,000 people a year,the cost to society for health care, loss of productivity and motor vehicle accidents due to alcohol consumption in the U.S. is $249 billion a year or about $2.05 per drink. Worldwide the costs easily exceeds a trillion dollars annually. Prohibition, prayer, meditation and the exhortation of healthcare and religious officials has failed to curb humanity's' appetite for this debilitating substance. Although cannabis use by humans' dates back before recorded history, its use as a substitute for alcohol is absent from historical writings. In Muslim countries,where alcohol is forbidden,the rapid spread of hashish throughout 12th century Persia(now Iran) and North Africa could be attributed to its qualities as an alcohol substitute, but nowhere is that written. There were numerous references in 19`h century medical literature for using cannabis to treat opioid addiction. Dr.Ethan Russo noted that the 1902 treatise by Thomas Crothers,Morphinism and Narconianias "described all of the addictive substances, from cocaine to caffeine, morphine to nicotine. The only context in which cannabis was mentioned was as a treatment for addiction to other drugs." The first mention of cannabis specifically as a substitute for alcohol was in 2003 when medical marijuana pioneer Dr. Todd Mikiyuria reported in a study published in the medical marijuana journal O'Shaughnessy's that ninety-two Northern Californians had successfully used cannabis to treat their alcoholism. Dr. Mikiyuria stated that"All patients reported benefit, indicating that for at least a subset of alcoholics, cannabis use is associated with reduced drinking." In November 2011 Mark Anderson from Montana State University and Daniel Rees from University of Colorado Denver published research documenting that following the enactment of Montana's medical marijuana laws there was an increase in marijuana use of 19% from the pre- legalization average mean for 18—25 year-old males. Anderson and Rees concluded the increase was directly correlated with a 5.3% decrease in beer consumption. over 73 The authors found "that traffic fatalities fall by nearly 9 percent after the legalization of medical marijuana" and concluded that"The negative relationship between legalization of medical marijuana and traffic fatalities involving alcohol is consistent with the hypothesis that marijuana and alcohol are substitutes." Confirming their conclusion that increasing marijuana use leads to decreasing alcohol use was reported in December 2016 by Cowen and Company, a firm specializing in research for industry. The report found that as a result of the marijuana legalization laws in Colorado, Oregon and Washington,beer consumption had decreased by up to 6.4%. Further substantiating these findings, a survey of over 1,500 medical cannabis dispensary members published in the May 2017 Journal of Psychopharmacology reported a 42%percent reduction in the use of alcohol due to their use of marijuana. Like the tobacco executives who knew that cigarette smoking was deadly but hid the horrendous number of annual deaths, alcohol company executives are well aware that cannabis consumption leads to a decrease in alcohol sales. This accounts for their profligate funding of government anti-marijuana programs and their substantial contributions to campaigns opposing marijuana legalization initiatives. It is long past time for health-care professionals to tackle the disastrous consequences of alcohol consumption with a program to re-orient people to consuming cannabis when they seek the pleasurable, socializing, mind numbing, stress reliving and inhibition relaxing effects of alcohol. With none of the debilitating effects of alcohol and many health positive attributes, doctors should recommend cannabis as a substitute. People listen to their doctors. 74 ., The Desert Sun 750 N Gene Autry Trail Certificate of Publication Cti V�D Palm Springs, CA92262 rn� ,lN 5E'RiN�' 760-778-4578/Fax 760-778-4731 )' State Of California ss: 2111 pdOV 13 PIS Z County of Riverside Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0002515702 1 am over the age of 18 years old, a citizen of the United States and not a party to, or have — '��r°a�P65iTd2 interest in this matter. I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non NOTICE OF PUBLIC HEARINGCITY COUNCIL pariel)in each and entire issue of said CITY OF PALM SPRINGS newspaper and not in any supplement thereof A PERMANENT ORDINANCE AND INTERIM URGENCY ORDINANCE on the following dates, to wit: AMENDING THE PALM SPRINGS ZONING CODE RELATING TO ADULT USE CANNABIS FACILITIES,CASE 5.1218-F Newspaper:The Desert Sun NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs,California,will hold a public hearing at 11/4/2017 its meeting of November 15,2017.The City Council meeting begins at 6:00 p.m.,in the Council Chamber at City Hall, 3200 East Tahquitz Canyon Way,Palm Springs. The purpose of this hearing is to consider an application by the City of Palm Springs to amend the Palm Springs Zoning Code(PSZC)relating to the development standards and Iocational standards for Medical Use Cannabis Facilities and I acknowledge that I am a principal clerk of the Adult Use Cannabis Facilities. printer of The Desert Sun, printed and ENVIRONMENTAL OET�RMINATION:The City of Palm Springs,in its capacity as the LeadAgency,undertheCalifornia published weekly in the City of Palm Springs, Environmental quality ct(CEOA)has determined that the proposed zoning code text amendment is Categorically Exempt under Section 15305 (Minor Alterations in Land Use Limitations) of the Guidelines for the California ! County of Riverside, State of California.The. Environmental Quality Act since the proposed zone text amendment proposes only insignificant changes to the land Desert Sun was adjudicated a Newspaper of use designations provisions. general circulation on March 24, 1988 by the REVIEW OF INFORMATION:The proposed ordinances and related documents are available for public review at City Superior Court of the County of Riverside, Hall between the hours of 8:00 a.m.and 6:00 p.m.,Monday through Thursday.Please contact the Office of the City State of California Case No. 191236. Clerk at(760)323-8204 if you would like to schedule an appointment to review these documents. COMMENT ON THIS APPLICATION:Response to this notice maybe made verbally at the Public Hearing and/or in writing before the hearing.Written comments maybe made to the City Council by email at cityclerk@palms rin sca. gov,or letter(for mail or hand delivery)to: I declare under penalty of perjury tha Kathleen 0.Hart,MMC,Interim City Clerk 3200 E.Tahquitz Canyon Way foregoing is tr�o -and correct. Execute Palm Springs,CA92262 this 4th d f NOVEMBER, 2017 in Any challenge of the proposed in court may be limited to raising only those issues raised at the public hearing Springs, alifor ia. j' described in this notice,or in written correspondence delivered to the City Clerk at,or prior to,the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard.Questions regarding this case may be directed to Flinn Fagg,Director,at(760)323-8245, Si necesita ayuda con esta carta,porfavor(lame a la Ciudad de Palm Springs y puede hablar con Felipe Primem telefono(760)323-8253. Kathleen D.Hart,MMC Declarant Interim city Clerk CITY OF PALM SPRINGS PUBLIC NOTIFICATION O,�JIMJJ I P ! � �J<IIOJM�' Date: November 15, 2017 Subject: Permanent and Interim Urgency Ordinances Relating to Adult Use Cannabis Facilities, Case 5.1218-F AFFIDAVIT OF PUBLICATION I, Cynthia A. Berardi, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on November 4, 2017. 1 declare under penalty of perjury that the foregoing is true and correct. Cynthia A. Berardi, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Cynthia A. Berardi, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on November 2, 2017. 1 declare under penalty of perjury that the foregoing is true and correct. Cynthia A. Berardi, CMC Chief Deputy City Clerk AFFIDAVIT OF MAILING I, Cynthia A. Berardi, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was mailed to each and every person on the attached list on November 2, 2017, in a sealed envelope, with postage prepaid, and depositing same in the U.S. Mail at Palm Springs, California. (10 notices) I declare nder penalty of perjury that the foregoing is true and correct. /;0( � CynThia A. Berardi, CMC 5 Chief Deputy City Clerk CITY OF PALM SPRINGS PUBLIC NOTIFICATION •,ury i i Date: November 30, 2017 Subject: Ordinance 1944 AFFIDAVIT OF PUBLICATION I, Cynthia A. Berardi, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice was published in the Desert Sun on November 29, 2017. 1 declare un*r /penalty of perjury that the foregoing is true and correct. Cynthia A. Wrardi, CIVIC Chief Deputy City Clerk AFFIDAVIT OF POSTING 1, Cynthia A. Berardi, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on or before November 29, 2017. 1 declare under penalty of perjury that the foregoing is true and correct. Cynthia A. Berar i, CIVIC Chief Deputy City Clerk The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs,CA 92262 R E(;E J V E D 760-7784578/Fax 760-7784731 ( }T Y t)F PALM S F'r I H State Of California ss: %1-d DEC _4 AM 9- 39 County of Riverside JFFICE OF TIjE CITY ClsE i Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0002567352 1 am over the age of 18 years old, a citizen of the United States and not a party to,or have interest in this matter. I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non panel)in each and entire issue of said newspaper and not in any supplement thereof on the following dates,to wit: Newspaper:The Desert Sun 11/29/2017 ,tod7 p -er g AN NTERIMr`V� E �O UIN NCEfy�OF E d� F ALM r CALIF,ORNI0. /jINDITG CHAPJER$a�,97}R 2, f� OHE�PLA'fC�YIP INCjS i ZONING CO, E E_LA IVE ry"ryr0-'TO IN'Gf 6Q E ENrS ND''7EVELQ ENi r. A,SfANDA,�RD5- FOR' OM M A IiAL tv�EDl L D A0t1LT- 615� acknowledge that I am a principal clerk of the a FACILITIES(N5thsi EQUIREb) y t; printer of The Desert Sun, printed and `y'�t - c,yy. ' Th�sOr inanc`"'de' a dsr�ovis(o' f h�gtlt�s oniRg published weeldy in the City of Palm Springs, t ypipen. . mhg ula�ions, for eyv )nm raalp Cannab(s Faglttle s� ermittesf s der the Medicai2afi abis County of Riverside, State of California.The R—ffa o pan- are 'a s n1e } d .44 .,� a g�sy'^drdinan Desert Sun was adjudicated a Newspaper of {{ r�mme8�aly�pai;adapton general circulation on March 24, 1988 by the Superior Court of the County of Riverside, E r AT CA ro,_y _ N cotf F R atkiDE State of California Case No. 191236. CI " F ltns iNGs " r sl END AR'f erjr i yCle f hem„ p nn s k vCa do ado,`e7cemfyitha er,�jml`9'e' nance ' s'" full 1a d to oPYnd ai dopted a,rCgula"r f am= F�, pangs' rt)<Z una the 5}"' of Nov'ergb b 'fo '� YES ncr rtsj a or P o em at, or 1 declare under penalty of perjury that the } ` ` } rMio E�s. OC6 foregoing �- is true and correct. Executed on AasTar 3 ECJSED ilane a� + this 29th day of NOVEMBER, 2017 in Palm 4, Springs, California. :Infcm Al... AiPublished:�7' 411 eclarant 1 �j _ =a MR PETE MORUZZI ` ^�i'.�.''�21�.me�nww a auN - PALM SPRINGS MODERN COMMITTEE a }� 'i .vW3.: P.O. BOX 4738 PALM SPRINGS, CA 92263-4738 w as CITY OF PALM SPRINGS g' I PLANNING SERVICES DEPARTMENT ATTN SECRETARY/5.1218-F ZTA PO BOX 2743 PALM SPRINGS, CA 92263-2743 MRS PATRICIA GARCIA-PLOTKIN, MS MARGARET PARK, DIRECTOR DIRECTOR AGUA CALIENTE BAND OF CAHUILLA TRIBAL HISTORIC PRESERVATION OFFICE INDIANS AGUA CALIENTE BAND OF CAHUILLA PLANNING&DEVELOPMENT DEPT. INDIANS 5401 DINAH SHORE DRIVE 5401 DINAH SHORE DRIVE PALM SPRINGS, CA 92264 PALM SPRINGS,CA 92264 .= MR FRANK TYSEN MR JOSEPH ONTIVEROS " 3 i SOBOBA BAND OF LUISENO INDIANS 175 S. CAHUILLA ILLA ROAD C INN CULTURAL RESOURCES MANAGER « 75 S. P.O. BOX 487 PALM SPRINGS, CA 92262 SAN JACINTO, CA 92581 MR RAYMOND HUAUTE eeR MICHAEL M1ARE EZ MR DOUG TODD WELMAS ri a Ti ioni eni iorF CQQRQI I_A_ TRIBAL CHAIRMAN CULTURAL RESOURCE SPECIALIST MARTINEZ DESERT reui iii i e TORRES o� MORONGO BAND OF MISSION INDIANS CABAZON BAND OF MISSION INDIANS 12700 PUMARRA ROAD 84-245 INDIO SPRINGS PARKWAY BANNING, CA 92220 THERMAL,i60 oo�Te (As of 05108/17) INDIO, CA 92203 MS JACQUELYN BARNUM MR DARRELL MIKE,TRIBAL CHAIRMAN ENVIRONMENTAL DIRECTOR TWENTY-NINE PALMS BAND OF CABAZON BAND OF MISSION INDIANS MISSION INDIANS 84-245 INDIO SPRINGS DRIVE 46-200 HARRISON PLACE INDIO, CA 92201 COACHELLA, CA 92236 NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS A PERMANENT ORDINANCE AND INTERIM URGENCY ORDINANCE AMENDING THE PALM SPRINGS ZONING CODE RELATING TO ADULT USE CANNABIS FACILITIES, CASE 5.1218-F NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of November 15, 2017. The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200 East Tahquitz Canyon Way, Palm Springs. The purpose of this hearing is to consider an application by the City of Palm Springs to amend the Palm Springs Zoning Code (PSZC) relating to the development standards and locational standards for Medical Use Cannabis Facilities and Adult Use Cannabis Facilities. ENVIRONMENTAL DETERMINATION: The City of Palm Springs, in its capacity as the Lead Agency, under the California Environmental Quality Act (CEQA) has determined that the proposed zoning code text amendment is Categorically Exempt under Section 15305 (Minor Alterations in Land Use Limitations) of the Guidelines for the California Environmental Quality Act since the proposed zone text amendment proposes only insignificant changes to the land use designations provisions. REVIEW OF INFORMATION: The proposed ordinances and related documents are available for public review at City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact the Office of the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review these documents. COMMENT ON THIS APPLICATION: Response to this notice may be made verbally at the Public Hearing and/or in writing before the hearing. Written comments may be made to the City Council by email at cityclerk _palmspringsca.gov, or letter (for mail or hand delivery) to: Kathleen D. Hart, MMC, Interim City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior to, the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Flinn Fagg, Director, at (760) 323-8245. Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs y puede hablar con Felipe Primera telefono (760) 323-8253. Kathleen D. Hart, MMC Interim City Clerk Terri Milton From: Jocelyn Kane <jocelynkane65@gmail.com> Sent: Wednesday, November 08, 2017 10:52 AM To: CityClerk Cc: Edward Kotkin; David Ready; Geoff Kors; Robert Moon; Ginny Foat; Chris Mills Subject: Cannabis Regulations in Palm Springs Attachments: Notes for Palm Springs Cannabis Regulations.docx November 8, 2017 Dear Honorable Mayor, Palm Springs Council, and City Staff, Thank you very much for considering the following information while you contemplate the difficult job of creating useful, safe and healthy regulations for the cannabis industry in Palm Springs. I know that The City is committed to bringing regulations and zoning changes to the city in a timely and fair way, while allowing cannabis consumption to continue with traced, tracked and tested product. I was able to speak at the most recent study session of the council on this topic and I mentioned only a few of the important points that I wanted to air out, so I will do that here in writing instead. Similar to repeal of alcohol prohibition, bringing this activity indoors, regulating it, and managing its safe and discreet consumption in private and social spaces will benefit all residents, visitors, and businesses in the short and long term. It is clear that some preferences should be given to the six license holders currently operating legally in the city. However, this should not preclude opening up opportunity to others quickly. NUMBER OF LICENSES: Considering the correct number of licenses is crucial to success. Clearly, the 6 current licenses in existence is far too little. There are 48K permanent residents in Palm Springs, which rises to 76K in winter months. Additionally, there are 1 million hotel guests per year, and another 600K visitors in non-hotel vacation rentals annually. The Greater Palm Springs CVB states in its Destination Development Plan that the Coachella Valley aims to grow visitors overall from 12 million to 16 million annually. In addition, there is reason to believe that even further growth is likely based on growth seen Nevada, Colorado and Washington state who have all legalized adult use cannabis. For comparative purposes, there are 700 storefronts in the entire state of Colorado serving 3.5 million adults (over 21 years of age.) This means 5000 adults per storefront serving the state. In California, recent surveys have shown that 23% of adults use cannabis, and another 38% are likely to try it once adult use is legal (Source: BDS Analytics.) This would translate into 60% of Palm Springs residents and visitors who would be likely to purchase cannabis, creating just under l million customers. Using these figures, there would need to be 200 cannabis storefronts to meet the 5000 adults per store figure now serving Colorado. Before finding that number problematic, please note that there are currently 268 active liquor licenses within Palm Springs city limits, according to the CA ABC. While the perfect number of retail and other supply chain cannabis uses may not be known at this time, it is clear that formulas using census figures, or hard caps on licenses are not realistic options. The Council has „,7 i discussed the ability to legislate a formula and then override it under the guise of Public Convenience and Necessity(as with liquor licenses), but policy that relies on exemptions seem broken from the start. JOBS: Please also consider the number of well-paid jobs that will be created by cannabis businesses for full time residents of the Coachella Valley. A report in Forbes Magazine projects that by 202, the legal cannabis market will create more than a quarter of a million jobs in legalized states. Colorado alone reported 18,000 new jobs and billions in new economic activity. The Council is already familiar with the tax implications for the City now that Measure E has passed. ZONING and LAND USE: Thus, the availability of properly zoned space seems crucial, and I believe that C 1 and downtown zoning should be eligible for cannabis uses. Additionally, accessory uses for sales and also consumption should be seriously considered. In order to preclude clustering issues, please consider other options related to distance radius and buffer zones. Other municipalities have looked at land use methods including orbiting, which looks at neighborhood commercial areas as a whole and limits uses from distances of each other, such that one block doesn't have too many cannabis uses and other blocks have none. Please also note that a recent study in Colorado, five years after legalization, shows housing values have gone up near cannabis retail stores. (realtor.com). While this may seem contrary to the negative narrative that sometimes prevails, it makes sense in light of the job opportunities that are created and population growth in legalized states. PORTABILITY AND EFFECTS ON RENT: Please consider the portability of licenses, or at least examine the implication of properties that receive CUP for cannabis uses may have different value than others next door. In addition, please address the concern that property owners may raise rents or property prices to very high levels if the zones that allow any cannabis business (seed to sale) are harshly reduced. If there is any hope of creating "equity" opportunities for entrepreneurs who have been disproportionately harmed by the"war on drugs,"more land must be zoned for cannabis activity, which will keep prices lower. SOCIAL USE: I am sure that Palm Springs is interested in the allowing the social use of cannabis that is safe, discreet and unobtrusive. There is a clear need to give responsible adults places to consume outside of private homes. Clearly, the million hotel guests and those using vacation rentals need accommodation in light of the canna- tourism that the city will enjoy if prepared by January 1, 2018. Diversity of consumption lounges and spaces acknowledges human behavior. If people are not given a place to consume, they will certainly do it in vacation rentals, hotel rooms or in the streets or parks. It may seem to them permissible, since the City did not provide other places to consume safely. Please do not criminalize 1.6 million tourists who visit the City of Palm Springs. There are models in San Francisco and Los Angeles regarding social use as a starting point. EDUCATION: The Council will need to work with CVB, hotel operators, and other all other outlets to educate visitors about what Palm Springs wants for its neighborhoods in terms of cannabis consumption. Just like the state alcohol server training, (called LEAD by the ABC), there should be a robust training program put in place for all 2 employees in the hospitality industry to keep cannabis users safe from over consumption, and driving under the influence. As a great tourist resort destination, Palm Springs could be the leading edge for these safe consumption space. ONE TIME PERMITS: In this same vein, there should be some consideration of special event or one-time permits for people who don't operate a full time cannabis business but who produce events in alternative spaces like galleries, yoga studios, coffee shops, etc. PSUSD: Further discussion including education programs and outreach via the Palm Springs Unified School District should be discussed, as well as advertising controls to keep those who are not interested in exposure away from cannabis. This is similar to any controls you may have on tobacco or alcohol advertising in city code. COMPASSION PROGRAM: Thought should be given to retaining or creating compassion programs that allow lower income residents, veterans, and those who are terminally ill to obtain low or no cost cannabis medication once taxation and regulation assuredly raise the price of cannabis. OFFICE OF CANNABIS: Lastly, I would be curious to see how the city intends to manage this growing industry and how Council will develop policy, regulation and enforcement rules, once legislation is put in place. I believe the only responsible way to do this is to create an Office of Cannabis, much like the Vacation Rental Compliance Department. This is an industry that includes activities that reach from agriculture and environmental concerns, manufacturing, testing, distribution and taxation,retail activities, hospitality and public safety issues. It reaches across many city departments and requires coordination best served from a hub and spoke model, as opposed to departmental decisions being made in silos. This hub would be the Office of Cannabis, easily be funded by cannabis application fees and some portion of cannabis taxes. I believe that an office like this would take pressure off other city departments and coordinate with current and future licensees, residents and businesses, and the 3 state level department involved with legalized adult use cannabis. I hope these thoughts are helpful and I look forward to the next City Council meeting. Best, Jocelyn Kane Permanent Palm Springs Resident Vista Norte Neighborhood ,4/ 9 3 Jocelynkane65 Lt6gmai l.com so 4 November 8, 2017 Dear Honorable Mayor, Palm Springs Council, and City Staff, Thank you very much for considering the following information while you contemplate the difficult job of creating useful, safe and healthy regulations for the cannabis industry in Palm Springs. I know that The City is committed to bringing regulations and zoning changes to the city in a timely and fair way, while allowing cannabis consumption to continue with traced, tracked and tested product. I was able to speak at the most recent study session of the council on this topic and I mentioned only a few of the important points that I wanted to air out, so I will do that here in writing instead. Similar to repeal of alcohol prohibition, bringing this activity indoors, regulating it, and managing its safe and discreet consumption in private and social spaces will benefit all residents, visitors, and businesses in the short and long term. It is clear that some preferences should be given to the six license holders currently operating legally in the city. However, this should not preclude opening up opportunity to others quickly. NUMBER OF LICENSES: Considering the correct number of licenses is crucial to success. Clearly, the 6 current licenses in existence is far too little. There are 48K permanent residents in Palm Springs, which rises to 76K in winter months. Additionally, there are 1 million hotel guests per year, and another 600K visitors in non-hotel vacation rentals annually. The Greater Palm Springs CVB states in its Destination Development Plan that the Coachella Valley aims to grow visitors overall from 12 million to 16 million annually. In addition, there is reason to believe that even further growth is likely based on growth seen Nevada, Colorado and Washington state who have all legalized adult use cannabis. For comparative purposes, there are 700 storefronts in the entire state of Colorado serving 3.5 million adults (over 21 years of age.)This means 5000 adults per storefront serving the state. In California, recent surveys have shown that 23% of adults use cannabis, and another 38% are likely to try it once adult use is legal (Source: BIDS Analytics.) This would translate into 60% of Palm Springs residents and visitors who would be likely to purchase cannabis, creating just under 1 million customers. Using these figures,there would need to be 200 cannabis storefronts to meet the 5000 adults per store figure now serving Colorado. Before finding that number problematic, please note that there are currently 268 active liquor licenses within Palm Springs city limits, according to the CA ABC. While the perfect number of retail and other supply chain cannabis uses may not be known at this time, it is clear that formulas using census figures, or hard caps on licenses are not realistic options. The Council has discussed the ability to legislate a formula and then override it under 81 the guise of Public Convenience and Necessity (as with liquor licenses), but policy that relies on exemptions seem broken from the start. JOBS: Please also consider the number of well-paid jobs that will be created by cannabis businesses for full time residents of the Coachella Valley. A report in Forbes Magazine projects that by 202, the legal cannabis market will create more than a quarter of a million jobs in legalized states. Colorado alone reported 18,000 new jobs and billions in new economic activity. The Council is already familiar with the tax implications for the City now that Measure E has passed. ZONING and LAND USE: Thus, the availability of properly zoned space seems crucial, and I believe that C1 and downtown zoning should be eligible for cannabis uses. Additionally, accessory uses for sales and also consumption should be seriously considered. In order to preclude clustering issues, please consider other options related to distance radius and buffer zones. Other municipalities have looked at land use methods including orbiting, which looks at neighborhood commercial areas as a whole and limits uses from distances of each other, such that one block doesn't have too many cannabis uses and other blocks have none. Please also note that a recent study in Colorado, five years after legalization, shows housing values have gone up near cannabis retail stores. (realtor.com). While this may seem contrary to the negative narrative that sometimes prevails, it makes sense in light of the job opportunities that are created and population growth in legalized states. PORTABILITY AND EFFECTS ON RENT: Please consider the portability of licenses, or at least examine the implication of properties that receive CUP for cannabis uses may have different value than others next door. In addition, please address the concern that property owners may raise rents or property prices to very high levels if the zones that allow any cannabis business (seed to sale) are harshly reduced. If there is any hope of creating "equity" opportunities for entrepreneurs who have been disproportionately harmed by the "war on drugs," more land must be zoned for cannabis activity, which will keep prices lower. SOCIAL USE: I am sure that Palm Springs is interested in the allowing the social use of cannabis that is safe, discreet and unobtrusive. There is a clear need to give responsible adults places to consume outside of private homes. Clearly, the million hotel guests and those using vacation rentals need accommodation in light of the canna-tourism that the city will enjoy if prepared by January 1, 2018. Diversity of consumption lounges and spaces acknowledges human behavior. If people are not given a place to consume, they will certainly do it in vacation rentals, hotel rooms or in the streets or parks. It may seem to them permissible, since the City did not provide other places to consume safely. Please do not criminalize 1.6 million tourists who visit the City of Palm Springs. There are models in San Francisco and Los Angeles regarding social use as a starting point. EDUCATION: The Council will need to work with CVB, hotel operators, and other all other outlets to educate visitors about what Palm Springs wants for its neighborhoods in terms of cannabis consumption. Just like the state alcohol server training, (called LEAD by the ABC), there should be a robust training program put in place for all employees in the hospitality industry to keep cannabis users safe from over consumption, and driving under the influence. As a great tourist resort destination, Palm Springs could be the leading edge for these safe consumption space. ONE TIME PERMITS: In this same vein, there should be some consideration of special event or one-time permits for people who don't operate a full time cannabis business but who produce events in alternative spaces like galleries, yoga studios, coffee shops, etc. PSUSD: Further discussion including education programs and outreach via the Palm Springs Unified School District should be discussed, as well as advertising controls to keep those who are not interested in exposure away from cannabis. This is similar to any controls you may have on tobacco or alcohol advertising in city code. COMPASSION PROGRAM: Thought should be given to retaining or creating compassion programs that allow lower income residents, veterans, and those who are terminally ill to obtain low or no cost cannabis medication once taxation and regulation assuredly raise the price of cannabis. OFFICE OF CANNABIS: Lastly, I would be curious to see how the city intends to manage this growing industry and how Council will develop policy, regulation and enforcement rules, once legislation is put in place. I believe the only responsible way to do this is to create an Office of Cannabis, much like the Vacation Rental Compliance Department. This is an industry that includes activities that reach from agriculture and environmental concerns, manufacturing, testing, distribution and taxation, retail activities, hospitality and public safety issues. It reaches across many city departments and requires coordination best served from a hub and spoke model, as opposed to departmental decisions being made in silos. This hub would be the Office of Cannabis, easily be funded by cannabis application fees and some portion of cannabis taxes. I believe that an office like this would take pressure off other city departments and coordinate with current and future licensees, residents and businesses, and the 3 state level department involved with legalized adult use cannabis. on I hope these thoughts are helpful and I look forward to the next City Council meeting. Best, Jocelyn Kane Permanent Palm Springs Resident Vista Norte Neighborhood Jocelynkane65@gmaii.com 84 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTERS 91, 92, AND 93 OF THE PALM SPRINGS ZONING CODE RELATIVE TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS FOR COMMERCIAL MEDICAL AND ADULT-USE CANNABIS FACILITIES. City Attorney Summary This Ordinance amends provisions of the City's Zoning Code to establish and amend zoning regulations for new Commercial Medical and Adult-Use Cannabis Facilities, as permitted under the Medical and Adult Use Cannabis Regulation and Safety Act. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority granted the City by Sections 5 and 7 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations upon the use of land and property within the City. B. Pursuant to Article XI, Section 7 of the California Constitution, the City of Palm Springs may adopt and enforce ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its citizens. C. The Federal Government has issued guidelines for states and local governments that have enacted laws authorizing cannabis-related conduct, requiring them to implement strong and effective regulatory and enforcement systems that will address the threat that medical and adult-use cannabis activity could pose to public safety, public health, and other law enforcement interests. D. On June 27, 2017, Governor Brown signed into law the Medical and Adult Use Cannabis Regulation and Safety Act("MAUCRSA"), legislation intended to provide and consolidate a comprehensive regulatory framework for licensing, control, and taxation of commercial medical and adult-use cannabis related businesses in California. MAUCRSA expressly protects a City's local licensing practices, zoning authority, and other local actions taken pursuant to the City's Constitutional municipal and police powers. State law, inclusive of MAUCRSA, contains statutory provisions that: �� 111,511'7 Ordinance No. Page 2 1. Allow local governments to enact ordinances expressing their intent to allow or prohibit the cultivation of cannabis and their intent to administer or not administer a conditional permit program pursuant to California Health and Safety Code section 11362.777 for the cultivation of cannabis; 2. Expressly provide that state law does not supersede or limit local authority for local law enforcement activity, enforcement of local ordinances or enforcement of local permit or licensing requirements regarding cannabis per California Business and Professions Code section 19315(a); 3. Expressly provide that state law does not limit the civil or administrative authority or remedies of a local government provision of law regarding cannabis including, but not limited to, a local government's right to make and to enforce within its limits all regulations not in conflict with general laws per California Business and Professions Code section 19316(c); 4. Specifically require, as a condition of state licensure, compliance with any and all local requirements for all cannabis-related operations. E. With that purpose, the City Council has adopted Chapters 5.45 and 5.55 of the Palm Springs Municipal Code to accommodate businesses allowing the commercial medical and adult use of cannabis while protecting the health, safety, and general welfare of the residents and businesses within incorporated areas of the City of Palm Springs in compliance with all applicable state law. F. It is the intent of the City Council to have a strong and effective regulatory and enforcement system with regard to commercial medical and adult- use cannabis that addresses identifiable challenges to public health, safety, and welfare, and advances law enforcement and community concerns through robust zoning controls and licensing procedures that are effective in practice. G. The City Council desires to establish reasonable zoning regulations and development standards related to commercial medical and adult-use cannabis related businesses which are intended to address the negative impacts and nuisance impacts associated with the uses. H. The City Council finds that the uses and activities permitted under this ordinance are consistent with and implement the goals and policies of the Palm Springs General Plan. I. The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3: Ordinance No. Page 3 1. The ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a "project" under CEQA, and is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment; 2. The ordinance is exempt under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the administrative activity in question may have a significant effect on the environment. The commercial medical and adult-use cannabis businesses conforming to the various categories provided under state law and Palm Springs Municipal Code Chapters 5.45. and 5.55 will have environmental impacts that are similar to other farming, manufacturing, distribution, laboratory, and transportation and distribution activities already authorized within the City. The actual, potential, direct, indirect and cumulative environmental impacts of each of these businesses, if any, will be analyzed and mitigated, to the extent that any mitigation is required, on a project-by-project basis. Any identification of particular environmental impacts arising from or related to this administrative activity taken through this ordinance would be entirely speculative. Further, there is no possibility that this Ordinance would create cumulative impacts that are significant because this Ordinance does not authorize construction, development or other related activities or any other activities that are not already permitted, except that the ordinance allows the same activities but in relation to a different material (adult-use or commercial medical cannabis) that is being grown, sold, transported, or otherwise utilized in some form. There are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; and 3. The Ordinance is also exempt under CEQA Guidelines Section 15183 (projects consistent with existing zoning, the general plan, or a community plan) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning, such as agriculture, manufacture, and distribution of other agricultural products and/or products to be used as pharmaceuticals. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. Palm Springs Zoning Code (PSZC) Section 91.00.10(B) is hereby amended to read: "Adult-Use Cannabis Dispensary" means a premises where Adult-Use Cannabis, Adult-Use Cannabis products, or devices for Adult-Use Cannabis Ordinance No. Page 4 or Adult-Use Cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid adult-use cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Adult-Use Cannabis Facility" means any business or operation which engages in adult-use cannabis activity. "Cannabis Lounge" means a discrete facility where Medical or Adult Use Cannabis and Medical or Adult Use Cannabis products may be smoked or ingested within the confines of the facility. "Downtown" means that portion of the City within the boundaries of Aleio Road on the north, Ramon Road on the south, Belardo Road/Museum Drive on the west and Indian Canyon Drive on the east. This area includes both sides of Palm Canyon Drive, Amado Road, Andreas Road, Tahquitz Canyon Way, Arenas Road and Baristo Road within such boundaries. "Medical Cannabis Dispensary" means a premises where medical cannabis, medical cannabis product, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, and where the operator holds a valid medical cannabis business permit from the City of Palm Springs authorizing the operation of a dispensary, and a valid state license as required by State Law to operate a dispensary. "Medical Cannabis Facility" means any business or operation which engages in medical cannabis activity. "Medical or Adult-Use Cannabis Transportation and Distribution Facility" means a facility for the procurement, sale, storage, transfer and transport of cannabis and cannabis products between entities licensed pursuant to this chapter. "Medical or Adult-Use Cannabis Cultivation Facility" means a an epslesed facility where Fnedisat cannabis is cultivated and processed only for distribution to a licensed Medical or Adult-Use Cannabis GeepeFative or 6sNest;ve Facility. "Medical or Adult-Use Cannabis Manufacturing Facility" means a facility where cannabis is processed, extracted, or compounded into edible or topical products intended for consumption, inhalation, or topical application, including a facility that packages or repackages cannabis products, where the operator holds a valid permit for manufacturing from the City of Palm Springs, and a valid state license as required by State Law for Ordinance No. Page 5 manufacturing. "Medical or Adult-Use Cannabis Testing Facility" means a facility, entity, or site that offers or performs testing of medical or adult-use cannabis, or medical or adult-use cannabis products and that is both of the following: 1 . Accredited by an accrediting body that is independent from all other persons involved in any segment or aspect of the cannabis industry in the state; and 2. Registered with the California State Department of Public Health. "Premises" means the land and any structures erected on it or the defined space within a building assigned to a single occupancy. "Uptown" means that portion of the City within the boundaries of Aleio Road on the south, Vista Chino on the north, the west side of Palm Canyon Drive on the west, and Indian Canyon Drive on the east. SECTION 2. PSZC Section 92.09.01(A) is hereby amended to read: 12. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 33. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 3. PSZC Section 92.12.01(A) is hereby amended to read: 17. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 35. Medical cannabis dispensary or adult-use cannabis dispensary, subiect to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 4. PSZC Section 92.14.01(A) is hereby amended to read: 9. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; Ordinance No. Page 6 44,19. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 5. PSZC Section 92.14.1.01(A) is hereby amended to read: 2. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 4-.5. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 92.23.15 of this Code; (Following uses renumbered accordingly) SECTION 6. PSZC Section 92.15.01(A) is hereby amended to read: 9. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 20. Medinol GaRRabiS n„Ifiyatinn fa GilitioSUbj t to the i � Je nrr�neY ; 21. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 22. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 7. PSZC Section 92.15.01(C) is hereby amended to eliminate the following use: 14. 11 ed'Gal nnnnntiis maRufnrf„rinn fa Gility and medinnl GaRRa pis Tom testing facility. (Following uses renumbered accordingly) SECTION & PSZC Section 92.15.01(D) is hereby amended to read: Ordinance No. Page 7 9. Medical or adult-use cannabis cultivation facility, subiect to the development standards contained in Section 93.23.15 of this Code; 10. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 9. PSZC Section 92.16.01(A) is hereby amended to read: 4. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; 5. Medical cannabis GUItivation faGilitieS, sab}est tetbe pFegeFtT tdevelepment standards contained in Con+inn 93 23 15 of this Ge de aR d ; 6. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 7. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 10. PSZC Section 92.16.01(C) is hereby amended to eliminate the following use: 4. Medinol nonnabis mnn„fa Gt iris,-, fnnility nnid r-+nnahi to GtiRg fnnility (Following uses renumbered accordingly) SECTION 11. PSZC Section 92.16.01(D) is hereby amended to read: 9. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 10. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; Ordinance No. Page 8 (Other uses renumbered accordingly) SECTION 12. PSZC Section 92.17.01(A) is hereby to read: 4. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code: 7. Medical sannabis b+'-IItiV-Atinn f-Anilit'eS subect to the nre EFty development st-Andards remained in Sertlnn 93 23 16 of this (merle and 7. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; 44,12. Services. i. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 13. PSZC Section 92.17.01(C) is hereby amended to eliminate the following use: 4. MedTeal rnnnabic mnn„fa Gti iriRg fa Gilitydrte'Gal Ga RnUbis tectiRg fanilifir is�cn'9-�'vrnT' y" (Following uses renumbered accordingly) SECTION 14. PSZC Section 92.17.01(D) is hereby amended to read: 15. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 16. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 17. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) Ordinance No. Page 9 SECTION 15. PSZC Section 92.17.1.01(A) is hereby amended to read: 3. Cannabis lounge, subject to the property development standards contained in Section 93.23.15 of this Code; development stanrdardS contained OR Sen-t'en A-2 72 15 of this Code and GeMplianGe with the previsiens of Chapter .35 of this ; 7. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 8. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 16. PSZC Section 92.17.1.01(C) is hereby amended to eliminate the following use: 3. Medical nann. bi m"nufa GtWiee fissility and medir+nl nennabis testing faGilityr SECTION 17. PSZC Section 92.17.1.01(D) is hereby amended to read: 13. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 14. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 15. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Other uses renumbered accordingly) SECTION 18. PSZC Section 92.17.2.01(A) is hereby amended to read: 7. MediGal�RRabr5 fnnilitiey+ cS,,hi8Gt t� property rnmplia RGe with the nrevi iens of Ghapter 5.35 of this Go -, 7. Medical or adult-use cannabis transportation and distribution facility, Ordinance No. Page 10 subject to the development standards contained in Section 93.23.15 of this Code; SECTION 19. PSZC Section 92.17.2.01(C) is hereby amended to eliminate the following use: 7 Medical nonnabis manufa GtUFine fa Gility and medieel eennabis testing fertility' SECTION 20. PSZC Section 92.17.2.01(D) is hereby amended to read: 10. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis manufacturing facility, subject to the development standards contained in Section 93.23.15 of this Code; 12. Medical or adult-use cannabis testing facility, subject to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 21. PSZC Section 92.18.01(A) is hereby amended to read: 1$. Med ,Gallo l Gan rabiiG e„14iyation fonilities, su eG4 4e the nreneFtdevelopment standaFdG GE)RtaiRP-d- .4A S-P-Gtien 93.23.15 of this Code and ; 4,10. Medical cannabis dispensary or adult-use cannabis dispensary, subject to the property development standards contained in Section 93.23.15 of this Code; 11. Medical or adult-use cannabis transportation and distribution facility, subject to the development standards contained in Section 93.23.15 of this Code; SECTION 22. PSZC Section 92.18.01(C) is hereby amended to read: 5. Medical or adult-use cannabis cultivation facility, subject to the development standards contained in Section 93.23.15 of this Code; (Following uses renumbered accordingly) SECTION 23. PSZC Section 93.23.15 is hereby amended to read: Ordinance No. Page 11 A. General Requirements. No land use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a Medical Cannabis Facility or an Adult Use Cannabis Facility shall be granted or permitted except in conformance with this Section. B. Regulatory Permit Required. Medical Cannabis Facilities and Adult Use Cannabis Facilities shall be permitted only upon application and approval of a regulatory permit in accordance with the criteria and process set forth in Chapter 5.35, Chapter 5.45 or Chapter 5.55 of this Code. Prior to initiating operations, and as a continuinq requisite to conducting operations, the person or the legal representative of the person wishing to operate a Medical Cannabis Facility or an Adult Use Cannabis Facility, as those terms are defined in Section 91.00.10, shall secure a regulatory permit from the City Manager under the terms and conditions set forth in Chapter 5.35, Chapter 5.45, or Chapter 5.55 of this Code and shall otherwise fully comply with the provisions of this Section. C. Separation Distance Requirements. No Medical Cannabis Facilities or Adult Use Cannabis Facilities shall be established, developed or operated except in accordance with the separation distances listed in the table below. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest property line of the Property on which the Cannabis Facility is, or will be located, and to the nearest property line of those uses described in this Subsection. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.13. Separation Distance Re uirements MCD or MF School Palm Public Playground MCD or AUD TF Residential Use MCCC Canyon Public Park AUD (Downtown/ CF Zone Uptown) TDF Drive Day Care/Child Care _ Youth Center CL None None None None None 250' 1000, MCC None None None None 250' 250' S00 600' MCD or AUD 600' 1000' 5W 0 ' 1000, None 259 250 5W600' None MCD or AUD 1000' 1000, 2000' N/A None 250' 600' Downtown/ Uptown) MF None None N/A None 250' 250' 5001600' TF None None N/A None 250' 250' 600'600' CF None None N!A None None Neae250' NG%600' TDF None None N/A None 250' 250' 600, List of Abbreviations: CL: Cannabis Lounge Ordinance No. Page 12 MCCC: Medical Cannabis Cooperative or Collective MCD: Medical Cannabis Dispensary AUD: Adult Use Dispensary MF: Medical or Adult Use Cannabis Manufacturing Facility TP Medical or Adult Use Cannabis Testing Facility CF. Medical or Adult Use Cannabis Cultivation Facility TDF: Medical or Adult Use Transportation and Distribution Facility D. Accessory Uses: A Medical Cannabis Facility or an Adult Use Cannabis Facility is not and shall not be approved as an accessory use to any other use permitted by this Zoning Code. Medical Cannabis Facilities and Adult Use Cannabis Facilities may be located on the same parcel or on the same premises as otherwise permitted by this Zoning Code. E. Parking Requirements. Except within the E-I Zone, where M-2 standards shall apply, Medical Cannabis and Adult Use Cannabis Facilities shall be parked at a rate of one (1) space for every three hundred (300) gross square feet of retail dispensary space or office space, and one (1) space for every eight hundred (800) gross square feet of warehouse/cultivation space. Cannabis Lounge facilities shall be parked at a rate of one (1) space for every three (3) seats, or one (1) space for every thirty-five (35) square feet where the public is served. Cannabis Lunge facilities within the "D" Downtown Parking Combining Zone may be parked at a rate of one (1) space for every four(4) seats, or one (1) space for every fifty (50) square feet where the public is served. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.B. F. Additional Requirements for Specific Cannabis Uses. 1. Medical Cannabis and Adult Use Cannabis Cultivation Facilities. Any Medical Cannabis or Adult Use Cannabis Cultivation Facility in excess of ten thousand (10,000) square feet shall operate only within the E-I or M-2 Zones. 2. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries. The following requirements shall apply to Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries: a. Square Footage Restrictions — Downtown/Uptown. Medical Cannabis Dispensaries and Adult Use Cannabis Dispensaries shall be limited to a maximum of one thousand five hundred (1,500) square feet in gross floor area on the street/ground level of any building in the defined Downtown/Uptown areas. Dispensaries (or portions thereof) located above the street/ground level shall be limited to a maximum of five Ordinance No. Page 13 thousand (5,000) square feet in gross floor area. b. Architectural Review. Medical Cannabis and Adult Use Cannabis Dispensaries shall be subject to Architectural Review by the Planning Commission, pursuant to Section 94.04.00(E)(2)(c). The Planning Commission and the Architectural Advisory Committee shall be tasked with reviewing the exterior storefront design subiectto the criteria listed in Section 94.04.00(D), with respect to the following elements: 1) Exterior color and materials of the storefront; 2) Awnings (where applicable); 3) Proposed signage, with respect to construction, font, illumination, color, and location; 4) Exterior lighting; and 5) Landscaping (where applicable). 3. Internal Testing Facility—Accessory to a Permitted Cannabis Facility. An on-premises testing facility may be permitted accessory to a Medical or Adult Use Cannabis Cultivation Facility or a Medical or Adult Use Cannabis Manufacturing Facility for the purpose of internal testing of cannabis products grown or produced at the facility. The internal testing facilitv shall be subject to the following requirements: a. The testing results cannot be published or shared with the public or any third party. b. Testing shall be limited to cannabis products grown or produced at the facility. C. The area dedicated to the internal testing facility shall be clearly shown and identified on any floor plans submitted to the City for the cannabis facility. d. No additional entitlement is required for an accessory internal testing facility; however, environmental analysis of the internal testing facility shall be performed as part of the environmental analysis for the associated cultivation or manufacturing use. e. Nothing in this Subsection (F)(3) shall be construed to limit the applicability of City regulations, including without limitation all provisions of Chapters 5.45 and 5.55 and any regulations promulgated by the City Manager pursuant thereto, to the colocation of the Ordinance No. Page 14 accessory internal testing facility. 4. Cannabis Lounge Facilities. Cannabis Lounge Facilities shall be subject to the following requirements: a. Separate Premises. Cannabis Lounge Facilities shall be located on a separate parcel or within a tenant space that is segregated and apart from any other use. A Cannabis Lounge Facility shall have a dedicated entrance from the street or public sidewalk, and shall have no internal connections or passage to any other tenant space or use. b. Sale of Cannabis and Cannabis Products. Medical or adult-use cannabis and medical or adult-use cannabis Products may be sold on the premises of a Cannabis Lounge, subject to the following: 1) The operator must hold an Adult-Use Dispensary permit; however, only the distance separation requirements for the Cannabis Lounge use shall be applicable to the facility. 2) All medical or adult-use cannabis and medical or adult-use cannabis products sold on the premises must be smoked, inhaled, consumed or ingested on the premises. Cannabis and cannabis products shall not be sold or provided for off-site use. 3) The operator may permit patrons to bring their own personal cannabis or cannabis products to the Cannabis Lounge Facility. Patrons shall not be allowed to sell or otherwise distribute their cannabis or cannabis products to other patrons. All cannabis or cannabis products brought to the facility must be smoked, inhaled, consumed or ingested on site, and shall not be permitted to leave the facility. C. Smoking of Cannabis. The smoking of cannabis may be permitted at a Cannabis Lounge Facility, as may be allowable under state law. d. Alcohol and Tobacco Products. The sale or consumption of alcohol or tobacco products is not Ordinance No. Page 15 allowed on the premises. e. Minors. Access to the Cannabis Lounge Facility shall be restricted to persons twenty-one (21) years of age and older. f. Visibility. The smoking, inhalation, consumption or ingestion of cannabis or cannabis products shall not be visible from any public place or any area where minors may be present. The Cannabis Lounge shall be located within a completely enclosed building. q. Odor Control. 1) The operator of each Cannabis Lounge Facility shall provide adequate air filtration so as to Prevent any detectable odor from the exterior of the premises. Within twenty-four (24) hours of any complaint concerning odors 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 Building Official documenting any and all actions taken and planned to address the odor complaints. The Building Official, upon a determination of the continued existence of detectable odor from the facility, may require an operator to submit an implementation plan and/or a performance schedule, above and beyond this written disclosure filed within twenty-four (24) hours, to ensure the employment of measures to control the odor. 2) The Building Official shall have the authority to require an operator of a Cannabis Lounge Facility to amend any implementation plan and/or performance schedule submitted pursuant to this Subparagraph F.4.g to cause compliance herewith. 3) Any failure to timely submit a written disclosure, a more detailed implementation plan and/or performance schedule or amendment thereto, to timely adhere to the terms of either, or to complete any required improvements within the timeframe specified by the Building Official shall Ordinance No. Page 16 be grounds for revocation of the permit for the cannabis lounge facility. 4) Odors from a Cannabis Lounge Facility are identified as a public nuisance pursuant to PSMC Chapter 11.72. The City may pursue all administrative, civil and criminal remedies identified in that chapter in relation to any nuisance determined to exist with respect to the operation of a cannabis lounge facility in violation of this Subparagraph F.4.g. SECTION 24. This Ordinance is introduced and adopted based upon the true and correct recitals above, including without limitation the findings stated therein, e.g., that adoption of this Ordinance is consistent with, and implements the goals and policies of the General Plan, that this Ordinance is exempt from environmental review under the Califomia Environmental Quality Act ("CEQA") for the reasons reflected in the recitals, etc. SECTION 25. On its effective date, this Ordinance shall supersede the Interim Urgency Ordinance with identical regulatory content adopted on even date herewith. SECTION 26. The Mayor shall sign, and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of applicable law; this Ordinance shall take effect thirty(30) days after passage. THIS SPACE INTENTIONALLY BLANK PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS DAY OF 2017. ROBERT MOON MAYOR Ordinance No. Page 17 ATTEST: KATHLEEN D. HART, MMC INTERIM CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on and adopted at a regular meeting of the City Council held on by the following vote: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN D. HART, MMC INTERIM CITY CLERK Separation Distance Requirements School MCD or MF Palm Public Playground MCD or AUD TF Residential Public Park Use MCCC AUD (Downtown/ CF Canyon Zone Day Care/Child Uptown) TDF Drive Care Youth Center CL None None None None 200 uuu MCCC None None None None 250' 250' 5W600' MCD or AU D 54 60(� 1000' None 25W None 250' 5GW600' 1000' 1000' MCD or AUD 1000' 1000' 2000' NIA None 250' 600' Downtown/ U town MF None None N/A I None 250' 250' 50l}600' TF None None N/A None 250' 250' 504600' CF None None N/A None None None 250' None 600' TDF None None N/A None 250' 250' 600' List of Abbreviations: CL: Cannabis Lounge MCCC: Medical Cannabis Cooperative or Collective MCD: Medical Cannabis Dispensary AUD: Adult Use Dispensary MF: Medical or Adult Use Cannabis Manufacturing Facility TF: Medical or Adult Use Cannabis Testing Facility CF. Medical or Adult Use Cannabis Cultivation Facility TDF: Medical or Adult Use Transportation and Distribution Facility Zoning Districts Use CBD C-1 C-2 HC I C-M MA1 M-1 M-2 E-1 A Cannabis Loun e P P P P P P P P Medical Cannabis Cooperative P P P P P P P or Collectives Medical or Adult Use Cannabis P P P P P P P P P Dispensary — — Medical or Adult Use Cannabis p p R P R p Cultivation Facility CUP CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LIAR L-l:tp Lup LUR WR Manufacturing Facility CUP CUP CUP CUP CUP Medical or Adult Use Cannabis LUD LISP LUR Ltd WID Testing FacilityCUP CUP CUP CUP CUP Medical or Adult Use Cannabis Transportation & Distribution P P P P P P Facility List of Abbreviations: P=Permitted Use LUP=Land Use Permit CUP= Conditional Use Permit Underlined text is added;sk+skon taw is removed Terri Milton From: Lanny Swerdlow<Ian nyswerdlowrn@yahoo.com> Sent: Wednesday, November 15,2017 9:48 AM To: Robert Moon;Chris Mills;Ginny Foat;JR Roberts; Geoff Kors Cc: CityClerk Subject: Submission for consideration at Nov. 15 PS City Council meeting Attachments: MARIJUANA ANTI.doc Attached is my statement regarding on-site consumption relating to the Introduction of an Ordinance on commercial medical and adult use cannabis facilities. Please include in the official documents of the Nov. 15, 2017 PS City Council meeting regarding this issue. Lanny Swerdlow, RN www.BrownieMaryClub.org www.marijuananews.org http://www.facebook.com/MAPP-Marijuana-Anti-Prohibition-Project Listen to Marijuana Compassion & Common Sense Radio Program on www.BlogTalkRadio.com/marijuananews 760-799-2055 MARIJUANA ANTI-PROHIBITION PROJECT PO Box 739, Palm Springs CA 92263 760-799-2055 —www.marijuananews.org November 15, 2017 To: PALM SPRINGS CITY COUNCIL From: LANNY SWERDLOW Subject: On-Site Consumption Regulations I am pleased that the Palm Springs City Council has seen that the issue of on-site consumption should not be relegated to the backwaters of marijuana regulation but should be considered alongside the deliberations to develop dispensary and manufacturing regulations. Tourists coming to Palm Springs need legal areas in which to consume cannabis. Consumption in public areas is not allowed under Prop. 64 and most hotels do not permit smoking of tobacco let alone cannabis. For many cannabis consumers, the use of cannabis is enhanced by sharing cannabis with friends in the same way that many enjoy sharing a beer or cocktail. Businesses allowing on-site consumption would provide legal areas for the thousands of tourists coming to Palm Springs to legally consume cannabis either individually or in groups. I am concerned by what appears to be unneeded restrictions for businesses that will provide for on-site consumption of cannabis for their customers. Under the section entitled Analysis section 5 states that a facility wanting to allow on-site consumption "would require the approval of a Conditional Use Permit (CUP). " Conditional Use Permits are time-consuming and expensive. There is no need that a business that just wants to allow their customers to bring their own cannabis onto the premises to consume would need to jump through all the hoops that a CUP requires. If the premises was to sell marijuana then they would have to meet the same requirements as a dispensary, but if they are not selling marijuana but only allowing patrons to bring their own, the requirement for any kind of permit should questioned let alone a CUP. Regarding the Cannabis Zoning Final Ordinance revised section F 4 b 3 —Additional requirements for specific cannabis uses: These restrictions in this section seem to have been made by people who do not use cannabis and have made no attempt to contact people who do in order to understand cannabis culture and how it is consumed. 1 The section reads: Patrons shall not be allowed to sell or otherwise distribute their cannabis or cannabis products to other patrons. All cannabis or cannabis products brought to the facility must be smoked inhaled consumed or ingested on site and shall not be permitted to leave the facility. Not being able to sell cannabis is perfectly reasonable, but not being able to "distribute"means that people cannot share their cannabis with their friends and associates joining them at the business. Sharing cannabis whether it is a joint or sharing their special cannabis strains with a vaporizer is one of the rituals of cannabis use that facilitates socialization and promotes bonding. State law allows for people to give cannabis to any adult 21 and over as long as it is given freely and no remuneration is involved. The section stating that all cannabis brought on the premises must be totally consumed and a person cannot leave with cannabis they brought onto the premises but did not consume is absurd. There is no way a person would know exactly how much they would consume and having to use it all or lose it may cause some people to consume more than they normally would rather than have to throw out their expensive unused marijuana. In summary: 1. A CUP should not be required of businesses allowing cannabis use on their premises as long as no sales are taking place. A permit should be easily obtainable. 2. People should be able to share cannabis with their friends and others at businesses allowing on-site consumption. 3. People should be able to take home any cannabis they brought into the business but did not consume. 4. The Palm Springs Planning Commission and the Planning Department should consult with cannabis consumers before developing regulations concerning on-site consumption. 2 S371nb3S `JNINN 'dld d0 1N3W121b'd30 vTaquzanoN ag uz04I pounOD X410 A - 8191 * 9 asUD suopujn. loll . luiuoZ stc{uuu-ej poip@W pug asrl - qjnpV S3DIAd3S `JNINNVId + 3O 1N3WAVd3(1 ' sasn �Iugsa4 `.�luijnp-ujnuuuu `uoPEn141no .Toj dllj a.Ttnban s@ixesuadsip .TOJ MOIAO.T panp@4 Ljo.TV soixesuadsip uaam4aq uoi4-e edas uue4uueLu/agn4psuI pad.-eooj aq X-ew sapIll ej siq-euu-ez) asn _Ijnp-c ajaT4m spm4sip �Iuiuoz gsijq-e4s: sa(�u-GLjo pasodoa(j jo X.T-euuuuns swop-e n.Ia�I . a st -euu� I D S3DInd3S . 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JIM ME qmmm el oz t � � tTAi9!i .• � � / . s City of Palm Springs Owl • Office of the City Clerk "�n l w 3200 E.Tahquirz Canyon Way • Palm Springs, California 92262 C'q[/FORN�P Tel:760.323.8204 • Fax:760.322.8332 •TDD 760.864.9527 •www.palmspringsca.gov NOTICE OF CONTINUANCE NOTICE IS HEREBY GIVEN that the Regular Meeting held on October 18, 2017, the City Council continued Public Hearing Item No. 2.13. to November 15, 2017: 2.6. PROPOSED ORDINANCE TO AMEND THE PALM SPRINGS ZONING CODE (PSZC) RELATING TO REQUIREMENTS FOR ADULT-USE CANNABIS FACILITIES AND MEDICAL CANNABIS FACILITIES, CASE 5.1218-F ZTA: RECOMMENDATION: Waive the reading of the ordinance text in its entirety, read by title only, and introduce for first reading Ordinance No. , "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 91, CHAPTER 92 AND CHAPTER 93 OF THE PALM SPRINGS ZONING CODE RELATING TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS FOR ADULT-USE CANNABIS FACILITIES AND MEDICAL CANNABIS FACILITIES." I, Kathleen D. Hart, Interim City Clerk of the City of Palm Springs, California, certify this Notice of Continuance was posted at or before 6:00 p.m. on October 19, 2017, as required by established policies and procedures. )�1iA v KATHLEEN D. HART, MMC Interim City Clerk Post Office Box 2743 • Palm Springs, California 92263-2743