Staff is providing an update following the direction Council has provided in previous work sessions and no action is required of council at this time.

As a result of the working group meetings and City Council work sessions, staff has been provided direction on zoning, separation distances, and business license regulations including label confirmation (testing) and capping the number of dispensaries.  Currently, the Zoning Commission is scheduled to consider a draft amendment to the zoning regulations on October 5, conduct a public hearing, and then make a recommendation to City Council. The City Council is scheduled to consider the zoning regulation amendments at its regular meeting on October 25.  That draft amendment includes the following (Draft Zoning Regulation Ordinance attached):

• Allow Marijuana Dispensary – Medical, Adult and Combined Use in Heavy Commercial (CX), Light Industrial (I1), and Heavy Industrial (I2) districts.
• Require 1,000-foot separation between all Marijuana Dispensaries, Cultivation, and Manufacturing businesses from public or private schools, daycare centers, public recreation centers or public parks, churches, synagogues, or other place of worship, youth centers and neighborhood residential zones (Draft Map(s) to be shared by staff at this meeting).
• Allow Cultivator, Processor/Manufacturer and Transporter in Heavy Commercial (CX), Light Industrial (I1), and Heavy Industrial (I2) districts
• Allow Testing Laboratory in Downtown Support (DX), Heavy Commercial (CX), Light Industrial (I1, and Heavy Industrial (I2) districts
• Add Marijuana Dispensary, Testing Laboratory, Cultivator, Processor/Manufacturer and Transporter to the Primary Use Table in the Zoning Code (Table 27-1000/.1)
• Clarify that marijuana cultivation, processing, manufacturing, sales, transportation or testing laboratories are not “Home Occupations” (Sec. 27-1008) and cannot be “Accessory” uses to a Primary Use unless the accessory use is located in one of the districts where the use is allowed as a Primary Use.
• Clarify that outdoor cultivation is not allowed within the city limits for any licensed Marijuana Cultivation operation.
• Require sign permit applicants to provide state sign approval at the time of application. (Sec. 27-1400 -or- Sec. 27-1622 (permitting). Consider whether to adopt state sign permit requirements more carefully once the rules are finalized by DOR, but require applicants to show state approval prior to city sign permit review.
• Require 150 ft setback to arterial street frontage for all adult use marijuana dispensaries and combined use marijuana dispensaries.

Staff is in the process of drafting a proposed ordinance containing the remainder of the regulations which will be part of the business license structure. Staff expects to have a comprehensive final draft to share with Council by October 15. This proposed ordinance as well as the Zoning Commission's recommendation of any proposed amendment to the zoning regulations is expected to be presented to Council on October 25 for first reading and public hearing.  The proposed business license ordinance will set forth the application process and lottery requirement if caps are imposed, license renewal process, provisions regarding label confirmation (testing), requirement of compliance with fire codes, state marijuana regulations, City water and wastewater regulations, inspections, etc. It will also include penalties and due process provisions for suspension and revocation of licenses issued by the City for any violations of City code. 

This is an informational update and no formal action is required at this time.

The issue of local excise tax is also before the voters on November 2, 2021, so any revenue impact is uncertain at this time.

City business licensing fees to defray licensing expenses will need to be established by separate resolution and are expected to vary according to the types of regulations implemented.
 

This is presented to update Council on the progress of staff in developing regulations. The studies provided during previous work sessions provide additional information for Council to review in order to make informed policy decisions.  No action is required, and the schedule to put regulations in place before the end of the year is getting short, but staff welcomes any questions or specific direction Council would like to provide regarding any other areas Council wishes to see regulated.