Public Hearing followed by discussion and possible action on any and all matters regarding Conditional Use Permit Case No. 2015-0420, a request by Mario D. Buchanan, owner, for a Conditional Use Permit to allow a medical marijuana dispensary on a Community Commercial (C-2) zoned property located at 702 N. Mesa Street, San Luis, AZ. (John Starkey, Zoning Administrator)

A. Open public hearing
B. Close public hearing
C. Action on Conditional Use Permit Case No. 2015-0420

The applicant is requesting a Conditional Use Permit to allow a medical marijuana dispensary at 702 N. Mesa Street (alley).  The property is zoned as Community Commercial (C-2) and is located on the northwest corner of Mesa Street and C Street. The company that will be managing this dispensary is Sun City Capital Investments, Inc., a nonprofit business. Sun City Capital Investments, Inc. currently operates medical marijuana dispensaries and cultivation locations in El Mirage, Lake Havasu, Quartzsite, Prescott Valley, Las Vegas and Los Angeles.   

The conditional use permit is required by the City of San Luis Zoning Ordinance and is needed prior to applying for a dispensary registration certificate. After receiving the dispensary registration certificate from the state, the application will go through the City of San Luis's building permit and business license process. During the process the applicant must comply with all current regulations adopted the City of San Luis.
 
With this application, the city has received a a total of three applications for a conditional use permits to allow a medical marijuana dispensary. The City may receive several applications for dispensaries but the Arizona Department of Health Services (ADHS) only issues one dispensary registration certificate per Community Health Analysis Area (CHAA).
 
A CHAA zone is a type of geographic unit sectioned out by the Arizona Department of Health Services. There are a total of 126 CHAA zones in the state, and candidates can apply to open a dispensary in either one of them if they stand up to all the necessary criteria. One (1) medical marijuana license will be issued per CHAA zone, with the limit being a total of 126 dispensaries statewide.

If there are several applications for a CHAA zone that are complete and in compliance, the ADHS issues one (1) certificate using a random selection process, and in case there is only one qualifying application for a given CHAA zone it will be automatically approved.   

There are two CHAA zones within the City limits of San Luis because the Somerton CHAA crosses over the City limits of San Luis.

However, this conditional use application is within the San Luis CHAA.  There has been one other application within the San Luis CHAA which was approved by City Council.  If the Council approves the conditional use application before it today, only one of the two will be approved by the state.

A qualifying patient may grow their own marijuana, up to 12 plants, in an enclosed, locked facility if they live more than 25 miles from a licensed dispensary.   By allowing a medical marijuana dispensary in the City, no one will be able to grow at home within the City limits of San Luis thereby giving the City better control over the growing of medical marijuana.

State law dictates that cities must allow medical marijuana cultivation and dispensary facilities.The state law requires that medical marijuana cultivation and dispensary facilities be located within certain distances of schools.  San Luis chose to adopt Zoning Regulations that require medical marijuana cultivation and dispensary facilities to be located away from day care centers, churches, and parks. Because of the prevalence of those facilities toward the center of the City where this application is located, the locations where medical marijuana facilities would be allowed are limited.(Marijuana Buffer Map attached).

CITIZEN REVIEW MEETING:
The Citizen Review Meeting was held on November 10, 2015 at City Hall Multi-Purpose Room at 6:00 PM. The intent of this meeting was to allow the public to learn about the project, ask questions, and express comments. There was no public present.

PLANNING AND ZONING COMMISSION MEETING:
The Planning and Zoning Commission held a public hearing on November 17, 2015. Five members of the commission were present and one declared a conflict of interest and appropriately abstained from voting.

The main concern from the Commission was the parking spaces available for this request. The commission asked the applicant to provide a more detailed site plan (Attached).

A motion was made to approve the application with two votes in favor and two against. The motion did not carry.  According to the Zoning Ordinance Section 2.1-G.3, "The affirmative vote of four members shall be required to pass a motion…” The City Council will not have jurisdiction on the conditional use application until the Planning and Zoning Commission makes a motion with the required four votes to recommend either approval or denial of this application. Because the motion made did not pass, the item was returned to the Commission for action for the next meeting.  The Public Hearing was continued to December 8, 2015.

The Commission also requested a more detailed site plan for the proposed project, the updated site plan submitted is attached.

On December 4, 2015, staff received a letter from the applicant representative stating that they are willing to comply with all codes and ordinances adopted by the City.  If they require more parking, they are willing to look into leasing adjacent property for additional parking.

At the meeting of December 8, 2015, there were five members of the commission present and one member withdrew due to conflict of interest. There was a motion to approve the conditional use which failed due to a tie 2 to 2. A second motion was made to deny the conditional use permit which passed 4 to 0.

AGENCY REVIEW:
As part of the review process, all land use cases are reviewed by various City and outside agencies.  We have received comments from the following:

1. City of San Luis Fire Department (10-14-15)  Please see attachment.

SURROUNDING PROPERTY OWNERS:
As required by state law, staff sent notification letters to property owners within 300 feet of the proposed project (25 letters). The City has not received any other significant concerns or objections from the various review agencies or adjacent property owners.

STAFF REVIEW:
The applicant has provided the information and materials necessary for review of the request for a Conditional Use Permit.  

The Conditional Use Permit is to allow a medical marijuana dispensary on property located at 702 N. Mesa Street. It will still be required to comply with all applicable regulations adopted by the City. 

Staff recommends approval of Conditional Use Permit Case No. 2015-0420. Approval subject to the "Conditions of Approval" attached which state:
1. This Conditional Use Permit shall only become effective upon the applicant providing proof that the Dispensary is State-approved, certified and registered with the Arizona Department of Health Services pursuant to Arizona Revised Statutes, Title 36, Chapter 28.1

2. The Medical Marijuana Dispensary Use and the subject site shall comply with all City of San Luis regulations as well as all requirements identified under Section 14.15 of the Zoning Ordinance.

3. Restriction on signage to allow only a green cross making the dispensary less conspicuous in the area.