Public Hearing followed by discussion and possible action on any and all matters regarding Conditional Use Permit Case No. 2015-0493, a request by Mark Maydahl, Ozvest, Inc., owner, for a Conditional Use Permit to allow a medical marijuana dispensary on a General Industrial (H-I) zoned property located at 2801 N. Main Street, San Luis, AZ. (John Starkey, Zoning Administrator)

A. Open Public Hearing
B. Close Public Hearing
C. Action on Conditional Use Permit Case No. 2012-0493

The applicant is requesting a Conditional Use Permit to allow a medical marijuana dispensary at 2801 N. Main Street.  The property zoned as General Industrial (H-I) and is located in the north end of the City of San Luis along Highway 95. The existing metal building was developed as a manufacturing warehouse but it has been unused for a few years now. The same applicant applied for a Conditional Use Permit to allow a medical marijuana dispensary offsite cultivation location and it was approved by City Council.  The dispensary is planned to be in the front part of the building facing Highway 95 and the cultivation facility in the back.

The company that will be managing this dispensary is Choice Cannabis LLC, a nonprofit business. Choice Cannabis currently operates 3 medical marijuana dispensaries, 1 cultivation site, 1 infusion kitchen, and 1 extraction lab, all licensed by the State of Arizona.

The conditional use permit is required by the City of San Luis Zoning Ordinance and it is needed prior to applying for an Arizona dispensary registration certificate. After receiving the dispensary registration certificate from the state, the application will go through the building permit and business license process. During the process the applicant must comply with all current regulations of the City of San Luis. 

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.

If there are several applications for a CHAA zone that are complete and in compliance, the ADHS issues one 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.

The state grants only one dispensary registration certificate per CHAA zone. The City limits of San Luis encompasses two (2) CHAA zones, the San Luis CHAA and part of the Somerton CHAA.  This proposed location is located within Somerton CHAA so it will be applying for the dispensary registration certificate of that CHAA. Even though it is in the Somerton CHAA the property is within San Luis City limits and requires a conditional use permit from San Luis.

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.

The state law requires that medical marijuana cultivation and dispensary facilities cannot be located within certain distances of schools (A.R.S. 36-2804) and the City Zoning Code requires the medical marijuana cultivation and dispensaries cannot be located within certain distances from other facilities such as churches, day-care centers, and parks. Because of the prevalence of schools, churches,  day-care centers, and parks in San Luis, particularly toward the center of the City, the locations where medical marijuana facilities would be allowed are limited.

State law dictates that Cities must allow for medical marijuana cultivation and dispensary facilities.

CITIZEN REVIEW MEETING:
The Citizen Review Meeting was held on December 1, 2015 at City Hall Council Chambers at 6:00 p.m. The intent of this meeting was to allow the public to learn about the project, ask questions, and express comments. There was public present.

PLANNING AND ZONING COMMISSION MEETING:
The Planing and Zoning Commission held a public hearing on December 8, 2015. The Commission recommends approval of this request as presented by staff. 

AGENCY REVIEW:
As part of the review process, all land use cases are reviewed by various City and outside agencies. As required by state law, staff sent notification letters to property owners within 300 feet of the proposed project (14 letters). The City has not received any 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 2801 N. Main 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. 2015-0493. Approval subject to the following conditions:

1. The 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 the City Code, Zoning Regulation Section 152.225 (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.