ZF #2022-0075: Consider a request for a Cannabis Use Permit to allow issuance of a cannabis cultivation license for up to two acres of canopy for Capay Valley Organics, LLC, issuance of a nursery license, and determine that the project falls within the scope of the previously certified Yolo County Cannabis Land Use Ordinance Environmental Impact Report and that no further environmental review is required under the California Environmental Quality Act (CEQA). The Project also includes a request for approval of a buffer reduction and buffer exception from two off-site residences in the Agricultural Extensive (A-X) zone. The project is located on a 34-acre A-X zoned parcel at 24477 County Road 22A, approximately one-mile south of the town of Esparto (APN: 049-180-024). (Applicant: Dimitry Lublin/Owner: Dimitry Lublin and Lydia Lublin) (Planner: Jeff Anderson)

That the Planning Commission: 

The proposed Cannabis Use Permit, if approved, will contain an extensive set of conditions that will regulate the use of the property to conduct cannabis cultivation and nursery uses. The allowance of up to two acres of cannabis canopy for Capay Valley Organics will provide additional business opportunity for the operator to compete in the regulated cannabis industry. The regional nursery use will contribute to the growth of the cannabis market in Yolo County by providing services and products (immature plants) to other cannabis operators that may not have the capacity or ability for such uses. The project, as conditioned, is in compliance with the Countywide General Plan, Cannabis Land Use Ordinance, and Yolo County Code.

SUMMARY
The project site is a 34-acre agriculturally zoned parcel, located approximately one-mile south of the town of Esparto. Capay Valley Organics first received a license to cultivate cannabis in 2017 and has continuously cultivated up to one-acre of canopy, both outdoors and within greenhouses, under validly-issued county and state licenses since then. Capay Valley Organics currently cultivates approximately 33,650 square feet of mature outdoor canopy in the western portion of the parcel and cultivates approximately 9,856 square feet of mixed-light canopy within greenhouses. There are a total of nine 1,920 sf greenhouses on the property. Seven of the greenhouses are used for mature canopy and two greenhouses are used for propagation (immature canopy). The outdoor canopy is screened on the north and west sides with a six-foot chain link fence with tan privacy slats, and the south and east sides are screened with wire fencing and green fabric. The project site also contains an existing 2,400 sf metal building used for harvest storage, drying, processing, packaging, waste storage, office uses, and clone area. There are eight cargo containers on the site—four are used for non-cannabis storage, two are used for cannabis supply storage, one is used for fertigation, and one is used for security equipment. Two composting areas are located near the existing greenhouses, which are used for outdoor cultivation waste and mixed-light (greenhouse waste) and are reintroduced into the soils on-site to support agricultural operations. In addition to the cannabis uses, there are two residences on the property. One residence is occupied by the site manger and the other residence is occupied by the property owner/project applicant.   

The property is served by an existing onsite domestic well and septic system. Access to the property is from a paved easement road off of County Road 22A that transects approximately 300 feet of the property to the north (APN: 049-180-019). The majority of the internal access roads and parking areas within the Capay Valley Organics site are graveled, and a few sections are paved. Capay Valley Organics employs four year-round employees, including a property manager that lives onsite. The applicant is also involved in the day-to-day operations. There are approximately three to four employee roundtrips per day, typically to/from Esparto, and approximately four distributor deliveries/pick-ups per year.    

The proposed project includes the addition of up to one acre of outdoor cannabis cultivation canopy southeast of the existing outdoor cultivation area, for a total of two acres of cultivation canopy on the site, the construction of a new 11,250 sf metal building to be used for on-site processing and storage of cannabis plants, the construction of nine greenhouses (17,280 sf total), and approximately one-acre of outdoor nursery planting area. Approval of the nursery license will allow Capay Valley Organics to grow cannabis used for propagation, including clones, immature plants, and seeds, and sell them commercially. It is important to note that the regional nursery use is not open to the public and the license does not allow for onsite sales. Plants would be shipped through a licensed distributor.

The new expansion of outdoor cultivation and nursery, as well as the new greenhouses and processing building, would require extension of water lines, and new fencing would be installed around the outdoor cultivation and nursery areas. The existing and proposed business premises will maintain adequate utilities, access roads, drainage, and sanitation infrastructure in line with County and State regulations, standards, and specifications. The proposed processing building will contain a permanent restroom and handwashing station for employee use. No additional employees are anticipated for the proposed expansion of uses.

Capay Valley Organics engages in seasonal outdoor cultivation (i.e., one harvest), with planting generally beginning around May and the harvesting phases ending around October/November. The cannabis plants grown within the greenhouses typically undergo annual cultivation with up to three harvests per year. The proposed expansion of outdoor cultivation and new greenhouses will follow the same cultivation and harvest schedule as the existing operations. The proposed outdoor nursery area would have several growing cycles as these plants are immature and do not go to harvest. All exterior lighting is required to be full cut-off, shielded, and downward facing to prevent spillover onto other properties, structures, or the night sky. Artificial grow lighting is not allowed within hoop houses or other outdoor areas during any cultivation cycle (immature, teens, or mature). 

As discussed in more detail below, under Analysis- Buffers and Setbacks, Capay Valley Organics is requesting a buffer reduction from an off-site residence approximately 553 feet from the existing outdoor cultivation area and a buffer exception from an off-site residence approximately 290 feet from the existing outdoor cultivation area. Both affected property owners have provided statements that they do not object to the reduced buffer requests (Attachment F).   

ANALYSIS
The proposed project has been reviewed for consistency with the Countywide General Plan and the County Zoning Regulations, including the Cannabis Land Use Ordinance (CLUO). The proposal is also consistent with the CLUO Environmental Impact Report, and no further environmental review is required under the California Environmental Quality Act. As explained below, the project, as conditioned, is consistent with all applicable plans, policies, and regulations.

General Plan and Zoning Consistency
The project, as conditioned, is consistent with the Countywide General Plan. The requested use is proposed on property designated as Agriculture (AG) in the Countywide General Plan. Cannabis cultivation and cannabis nurseries are called out as agricultural activities under the AG land use designation (Policy LU-1.1, and Table LU-4). Further, Policy AG-3.22 reads:

The project furthers policies in the Countywide General Plan that seek to promote a healthy and competitive farm economy to expand the County’s agricultural base, including Policy AG-3.2, which encourages processing on agricultural land subject to appropriate design review and development standards, and Policy AG-3.12 that promotes marketplace-initiated conversion from lower to higher value-added crops and agricultural commodities. The project, when considered as a component of the County’s cannabis industry as a whole, furthers Policy AG-5.1 which promotes markets for locally and regionally grown and/or prepared food and other products and services.

The subject property is zoned Agricultural Extensive (A-X). Pursuant to Article 3, of Chapter 2, of Title 8 of the Yolo County Code, cannabis cultivation and nursery uses are allowed in the A-X zone upon issuance of a Cannabis Use Permit. The project meets the development requirements and setbacks prescribed for the A-X zone.

CLUO Consistency

As part of the application review process, staff conducted a thorough review of the project against the applicable provisions of the CLUO. The project does not meet the CLUO buffer requirements from sensitive land uses, as there are two off-site legal residences in the A-X zone located closer than 600 feet from the extent of outdoor cultivation. As discussed in more detail below, the CLUO allows existing licensees to request approval of buffer reductions (up to ten percent of the required buffer distance) and buffer exceptions (more than ten percent of the required buffer distance).  Should the buffer reduction and buffer exception requests be approved, the project, as conditioned, is determined to be in compliance with the CLUO. The applicable provisions of the CLUO are included as conditions of approval. The operator is required to submit an annual report on July 1 of each year starting the first July of the year after permit issuance documenting compliance with the Cannabis Use Permit requirements.

Project Design and Operation

As described above, the project involves the expansion of cannabis cultivation canopy from one acre to two acres utilizing both outdoor and indoor (mixed-light greenhouses) methods. The proposed on-site processing uses will occur within a new 11,250 sf metal building and proposed nursery uses would occur within one acre of outdoor area. The project site is served by PG&E and is enrolled in the Valley Clean Energy ultra-green service. The project will be conditioned to maintain Valley Clean Energy ultra-green or equivalent standard (100 percent renewable and 100 percent carbon free) throughout the life of the permit. The project is also conditioned to require the use of LED lighting or equivalent or more efficient technology. Indoor lighting is required to be fully controlled so that minimal or no light escapes. Outdoor lighting is required to be full cut-off, shielded, and downward facing so it does not spill over onto other properties, structures, or the night sky.

The CLUO addresses odor impacts through limiting the location of cannabis uses, and establishing buffers for indoor and outdoor cannabis uses, odor control requirements, and enforcement procedures. However, while these measures may minimize the likelihood of nuisance odors, the potential for odors to occur remains and was considered a significant and unavoidable impact in the CLUO EIR. The applicant submitted an odor control plan that describes the odor emitting activities and the administrative and passive controls to reduce and control odors to the greatest extent possible. If odor nuisances are verified pursuant to the enforcement procedure set forth in the CLUO, the operator may employ active controls, such as carbon filters, odor neutralizers or scrubber systems, barriers (curtains/air breaks) at doorways, improved building ventilation, as well as passive controls such as additional vegetation barriers, relocation of outdoor canopies to mixed-light greenhouses, utilization of different plant strains, and relocation of outdoor canopy areas. The odor control plan identified that typical winds are expected to blow mainly from the north-northwest and south-southeast.

The project relies on groundwater from an onsite domestic well using drip irrigation methods. The applicant estimates that approximately 3 acre-feet of water per year would be used upon expansion of the project. The CLUO EIR analyzed groundwater that would be used for cannabis crops and compared that to average groundwater use for other non-cannabis crops. The analysis demonstrated that the amount of groundwater used for cannabis activities under each of the CEQA Alternatives would be similar to the amount used for other crops likely to be grown on the property in the absence of contemplated cannabis uses. The high end of the analysis estimated the cumulative use of all cannabis operations in the County could reach 424-acre feet per year, which equates to approximately the average groundwater used by an orchard of about 131 acres.

Site Setting 

Cannabis cultivation and associated uses, such as regional nurseries and onsite processing, are permitted in agricultural zones with a Cannabis Use Permit. The operator has been cultivating cannabis on an annual basis under validly-issued county and state licenses since 2017. The project site is located in an agriculturally zoned area and is surrounded by parcels in agricultural production, ranging in size from five acres to 94 acres. Surrounding agricultural land uses include orchards, small farms, and several agricultural homesites. There are approximately 35 residences on agriculturally zoned parcels within one-half mile of the project site.  There is a separate cannabis operation immediately east (shares a property line) of the Capay Valley Organics site. Additionally, there are two other cannabis operations within 1.5 miles of Capay Valley Organics.

The topography of the site where cannabis operations occur is relatively flat. Portions of the property slopes upward in areas north and south of the cannabis operations. Portions of the cannabis operations are visible from County Road 23 to the south, even with screening, as the road is approximately 40 feet higher than the outdoor cultivation area. Greenhouses, which are not required to be screened, are also visible from County Road 23. The hilly topography along the northern portion of the site blocks most views of cultivation activities from County Road 22A to the north. The proposed outdoor cultivation and nursery areas will be fenced with six-foot high exclusionary fencing with privacy slats to match existing outdoor cultivation fencing.

The operator has prepared a security plan and will implement measures to secure the property, such as security cameras, alarms, lighting, perimeter security, and administrative controls. The operator also is required to provide property owners within 1,000 feet of the property line with an operable method of communication with a local or on-site responsible party having prompt access to the site, operations, and activities. This requirement facilitates communication between neighbors related to conditions at the site and operation of the activities.

Buffers and Setbacks

All existing structures, including the existing processing building and greenhouses, meet the setback requirements for the A-X zone. As described above, the project does not currently meet the buffer requirements from sensitive land uses as set forth in the CLUO. Outdoor cannabis uses (i.e., outdoor cultivation) must maintain a distance of 600 feet from off-site individual legal residences located on parcels under separate ownership in any non-residential zone. However, the CLUO allows existing licensees to request buffer reductions and buffer exceptions if they cannot meet required buffer distances from certain sensitive land uses identified in the CLUO. Buffer reductions are reductions of up to ten percent of the required buffer distances from CLUO sensitive land uses, and buffer exceptions are reductions of more than ten percent of the required buffer distances from CLUO sensitive land uses.

The applicant is requesting a buffer reduction of approximately 8% to allow outdoor cannabis cultivation within ±553 feet of a residence to the northwest of the existing outdoor cultivation area. The applicant is also requesting a buffer exception of approximately 52% to allow outdoor cannabis cultivation within ±290 feet of a residence to the northeast of the existing outdoor cultivation area. The two neighboring property owners that are affected by the reduced buffers from outdoor cultivation have provided statements that they do not object to the reduced buffer requests (Attachment F). The expansion of the outdoor cultivation area will not encroach closer to either homesite. An exhibit showing the two homes impacted by the buffer reduction and buffer exception request is included in Attachment F.  

Compliance History

The Department of Community Services, Cannabis Unit, maintains compliance and complaint history dating back to 2019 when the cannabis program moved from the Agriculture Department to the Department of Community Services. The operator has not received a Notice of Violation from the Cannabis Unit, however, several complaints have been lodged with the Cannabis Unit. From October 2019 to present, eight formal complaints have been lodged against cannabis operators within the Lamb Valley area, an area south of Esparto in close proximity to Lamb Valley Slough. Two of the complaints specifically reference Capay Valley Organics, while the remaining six complaints reference various other cannabis operations. Of the two specific Capay Valley Organics complaints, one was submitted in October 2021 and one was submitted in October 2023. Both complaints were in regards to odor, and the October 2021 complaint also mentioned that noise could be heard from a generator. A third formal complaint was submitted against Capay Valley Organics in October 2023, but was not counted in the eight total Lamb Valley complaints, because it did not specify a particular issue. The complaint urged the County to stop the spread of cannabis farms and not approve an increase in size of existing operations, particularly for cultivation areas.

The County’s online complaint form asks complainants to specify a particular cannabis operation so staff can follow up appropriately. The remaining six Lamb Valley complaints submitted between October 2019 and present were assigned to other cannabis operations, however, since many of the complaints were generalized odor complaints, Cannabis Unit staff cannot rule out that Capay Valley Organics was not a contributing factor. Nonetheless, staff conducted odor monitoring in response to several of the complaints where warranted, including at the Capay Valley Organics operation, and never obtained readings that met or exceeded nuisance thresholds (i.e., readings did not meet or exceed the 7:1 D/T standard).

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) REVIEW

The Cannabis Land Use Ordinance Environmental Impact Report (CLUO EIR) was prepared as a programmatic EIR for adoption of the CLUO and to support streamlined review of individual permit applications pursuant to CEQA Guidelines Sections 15168, 15162, and 15183. If the County finds that an individual project is within the scope of the CLUO EIR, its environmental impacts are adequately addressed in the CLUO EIR, and applicable mitigation measures are applied to the project, then no further environmental review is required. Staff prepared a project-specific CLUO Program EIR Checklist / Project Initial Study (Attachment C) that examines the conclusions reached in the CLUO EIR for each relevant CEQA impact category identified in the CLUO EIR and Appendix G of the CEQA Guidelines. Staff determined that the proposed project activities are within the scope of the CLUO EIR, and that no additional environmental review is required.

SUMMARY OF PUBLIC CORRESPONDENCE 

A Request for Comments was distributed to reviewing agencies on March 7, 2023. Comments received from reviewing agencies were incorporated into the Conditions of Approval (Attachment E) where applicable. A Courtesy Notice was also distributed on March 7, 2023, to the Planning Division’s interested parties list and mailed to property owners within 1,000 feet of the property boundary of the subject parcel. The Courtesy Notice summarized the existing and proposed operations as provided in the application materials. Staff received several responses from nearby property owners and residents expressing concerns about the project and stating objections to cannabis operations in the Esparto area, in general. Some of the project specific comments included questions about impacts to water table, drainage impacts, and concerns about nighttime lighting, increased use of electricity and water, generator usage, and damage to roads and property caused by large equipment/deliveries. Several commenters expressed concerns that the number of cannabis projects in the Esparto area is untenable and causes an increase in traffic and deterioration of county roads, increase (or feared increase) of crime, and unpleasant odors. Staff also received one phone call from a property owner in the general vicinity of the Capay Valley Organics site who expressed support for the project. Written comments received from the public are included as Attachment G.

The project was presented to the Esparto Citizens Advisory Committee (ECAC) on October 17, 2023, which was well attended by the community. The discussion at the ECAC meeting touched on many issues, ranging from specific project components to general concerns and complaints about cannabis operations, in general. Many community members present at the meeting shared their displeasure that the Esparto area, in particular, the area commonly referred to as Lamb Valley (southwest of Esparto), is oversaturated with cannabis operations. At the time of the October 17, 2023, ECAC meeting, there were five licensed cultivation sites in the Lamb Valley area. One of the cultivation sites along County Road 23, approximately 1.4 miles west of Capay Valley Organics, has since ceased cultivation activities and does not plan to continue cultivating at that location in the future. There was spirited discussion about impacts resulting from the perceived oversaturation of cannabis uses in the Lamb Valley area, including potent cannabis odors (skunk smell), increased traffic, water usage for cannabis plants, concerns that cannabis uses would decrease nearby property values, and increase of criminal activity.  Several community members also stated concerns and shared anecdotal information about other cannabis operations that were not agendized. ECAC members and community members also asked clarifying questions of the project applicant and provided project-specific comments about odor, water usage, and security measures, to name a few. The committee recommended denial of the use permit, by a vote of 5-1. The motion to recommend denial was based on community objections and concerns about odor, water use, and concentration of cannabis operations in southwest Esparto.

As evidenced by the discussion at the October 17, 2023, ECAC meeting, and comment letters received, as summarized above, it is clear many community members feel the Esparto area, and the Lamb Valley area, in particular, is oversaturated with cannabis operations. The CLUO established that only the Capay Valley is considered an area of overconcentration and is limited to no more than five cannabis use permits. The remaining unincorporated area of the County is not considered overconcentrated based on existing licensees. In other words, from a regulatory standpoint, overconcentration does not apply to existing licensees outside of the Capay Valley. Nonetheless, several community members have expressed displeasure with the amount of cannabis operations in the area.

New and/or relocated cannabis operations would not be allowed to locate in an area of the County (outside of the Capay Valley) with seven cannabis use permits in any six-mile diameter area. In an effort to shed light on this issue for the Planning Commission, staff conducted a measurement using a GIS application, which consisted of placing a six-mile diameter circle around the largest clusters of cannabis operations in the area, which includes Capay Valley Organics (Attachment H). This area covers County Road 15B to the north, County Road 87 to the east, County Road 25 to the south, and County Road 75B to the west. Within these six-mile diameter circles, there are eight existing cannabis operations. Three of these operations have received use permit approval (note that two of these operations are collocated and received one use permit, but for purposes of determining overconcentration each individual business entity is counted separately). The remaining five operations, including Capay Valley Organics, have submitted cannabis use permit applications, but have not yet been approved. Should four or five of these use permit applications be approved, these particular six-mile diameter areas, identified above, and shown in Attachment H, would be considered overconcentrated for purposes of accepting new applications (i.e., no new applicants would be allowed to locate there). However, as described above, pursuant to the CLUO, this six-mile diameter area is not considered an area of overconcentration for existing licensees.

     

The Yocha Dehe Wintun Nation (“Tribe”) submitted a comment letter dated March 23, 2023 (Attachment G), stating that the project is within the aboriginal territories of the Yocha Dehe Wintun Nation and therefore has a cultural interest and authority in the proposed project area, but based on the information provided, the Tribe is not aware of any known cultural resources near the project site and a cultural monitor is not needed. The Tribe recommended cultural sensitivity training for any pre-project personnel. A condition of approval has been added to require the operator to request cultural sensitivity training with the Tribe prior to the first construction activities requiring a building permit.

Staff consulted with Agricultural Commissioner’s Office, Building Division, Public Works Division, Environmental Health Division, various agencies and interested parties, and has received input from the Office of County Counsel.

Any person who is dissatisfied with the decisions of this Planning Commission may appeal to the Board of Supervisors by filing a notice of appeal with the Clerk of the Board within fifteen (15) days from the date of the action. A Planning Commission Appeal Form and appeal fee immediately payable to “County of Yolo” must be submitted at the time of filing. The Board of Supervisors may sustain, modify or overrule this decision. The Planning Commission Appeal Form can be accessed at the following link: https://www.yolocounty.org/government/board-of-supervisors/clerk-of-the-board/planning-commission-appeal