Public Hearing followed by discussion on any and all matters regarding Conditional Use Permit Case No. 2015-0153 a request by A and F Home Builders LLC, owner, for a Conditional Use Permit to allow a medical marijuana dispensary at 708 N. Archibald Street, San Luis, AZ.  (John Starkey)  

A.  Open public hearing
B.  Close public hearing
C.  Action on Conditional Use Permit Case No. 2015-0153

The applicant is requesting a Conditional Use Permit to allow a medical marijuana dispensary at 708 N. Archibald Street. The property is zoned as Community Commercial (C-2); it was originally a house and now is being used as commercial offices.  The legal name of the proposed medical marijuana dispensary will be Choice San Luis Inc. The company that will be managing this dispensary is Choice Cannabis LLC, a nonprofit business. Choice Cannabis currently operates 2 medical marijuana dispensaries, 1 cultivation site, 1 infusion kitchen, and 1 extraction lab, all licensed by the State of Arizona.   The proposed location was originally a house and now is being used as offices.
 
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 with the State. After receiving the dispensary registration certificate from the state, the application will go thru the building permit and business license process. During the process the applicant must comply with all current regulations 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 any one of them if they stand up to all the necessary criteria.
 
The dispensary registration certificate application process is divided appropriately. If there are several applications for CHAA 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 City of San Luis is one CHAA zone therefore the state grants only one dispensary registration certificate limiting the dispensaries in the City to only one.
 
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 City Code dictates that medical marijuana cultivation and dispensary facilities can’t go within certain distances of schools, day care centers, churches, etc. Because of the prevalence of those facilities in San Luis, particularly toward the center of the city, the locations where medical marijuana facilities would be allowed are rather limited.
 
CITIZEN REVIEW MEETING:
 
The Citizen Review Meeting was held on June 2, 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 were three people from the public present. The main concern was the location of the dispensary being too close to the port of entry.
 
PLANNING AND ZONING COMMISSION MEETING:
 
The Planning and Zoning Commission held a public hearing on June 9, 2015. The main concerns were traffic and available parking. The representative of Choice Cannabis explained that they usually don’t get more than 10 patients per day and typically no more than 2 at a time.
 
Five members of the Commissioners were present and one declared a conflict of interest and abstained to vote. After discussion, a motion was made to approve the application with a vote of 2 to 2,  a motion was then made to deny the application with three votes in favor and one against. The motion is not valid according to the Zoning Ordinance Section 2.1-G.3 that states “… The affirmative vote of four members shall be required to pass a motion…” The City Council does not have jurisdiction on the Conditional use 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 was not valid, the item was returned to the Commission for action.
 
A Special Meeting of the Planning and Zoning Commission was held on June 30, 2015. As required, it was advertised as a Public Hearing in the local paper. The main concern was the traffic and the parking for that location.  A representative of San Luis Choice was present and explained that at their Mohave facility they are not experiencing more than 2 or 3 people parked at any one time.  That the clients come into the store area one at a time.  They are willing to go to an appointment system if it becomes a problem, but they would like to find out first whether it becomes an issue.  There was a motion to approve the conditional use which failed for lack of a second.  There was a motion to deny the conditional use which passed 5 to 1 with one member withdrawing due to conflict of interest.
 
AGENCY REVIEW:
 
As part of the review process, all land use cases are reviewed by various City and outside agencies. As required by State Statute, staff sent notification letters to property owners within 300 feet of the proposed project (23 letters). The City has not received any significant concerns or objections from the various review agencies or adjacent property owners.
 
The applicant has provided the information and materials necessary for review of the request for a Conditional Use Permit. 

The recommendation of the Planning and Zoning Commission was to deny the application. The main concern in discussion was the traffic and parking in that area. 

City staff recommends that the City Council APPROVE the Conditional Use Permit to allow a medical marijuana dispensary at 1063 E. Main Street in San Luis, AZ.  Approval subject to the "Conditions of Approval" attached.

1. I MOVE TO OPEN PUBLIC HEARING.
2. I MOVE TO CLOSE PUBLIC HEARING.
3. I  MOVE TO APPROVE CONDITIONAL USE CASE 2015-0153 WITH THE CONDITIONS RECOMMENDED BY STAFF.