ZF #2023-046: Consider a request for a Cannabis Use Permit to allow issuance of a cannabis cultivation license for up to two acres of canopy and the issuance of a self-distribution license for Kind Farms LLC, and determine 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 is located on a ±20-acre agriculturally zoned parcel located off County Road 89, approximately 3.5 miles south of the town of Madison (APN: 050-100-040). (Applicant: Thomas Sheridan et al. /Owner: Kind Farms LLC) (Planner: Aaron Brown)

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 self-distribution uses. The allowance of up to two acres of cannabis canopy for Kind Farms LLC (“Kind Farms”) will provide continued business opportunity for the operator to compete in the regulated cannabis industry. The issuance of the self-distribution license will contribute to cost savings and vehicle trip reductions by allowing the operator to distribute products grown and processed on their own site instead of relying on outside distribution services. 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 ±20-acre agriculturally zoned parcel located off County Road 89 between County Road 26 to the north and County Road 27 to the south, approximately 3.5 miles south of the town of Madison. Kind Farms first received a license to cultivate cannabis in 2018 and cultivated through 2022. Kind Farms applied for a cultivation license in 2023, but did not engage in cultivation activities. Kind Farms resumed cultivation activities in 2024 under State and County licenses for up to one-acre of canopy. The existing cultivation area consists of a mixed-light greenhouse and an outdoor cannabis cultivation area. The existing mixed light greenhouse is a total of 49,392 square feet (SF), and consists of 19,008 SF of flowering area, 5,208 SF of immature plant area, and the remaining 25,176 SF is comprised of drying/processing rooms, a propagation room, restrooms, a break room, etc. The outdoor cultivation area is approximately 4.7 acres with 24,360 SF of flowering canopy. The total existing aggregate canopy for Kind Farms is 43,368 SF. Other structures used in the cannabis operation include: two 400 SF storage container drying/processing rooms, and one 400 SF storage container immature plant area. The property is served by an existing onsite well and septic system. 
 
In addition to the cannabis-related uses and structures, the property contains an unoccupied residence, a hay barn, a car port, and several outbuildings and storage containers. Access to the property is from County Road 89 via a recently improved driveway, with a completed encroachment permit on file. Kind Farms employs three to five full-time employees and approximately seven farm labor contractors assist with harvest activities, such as drying and trimming. Post approval, Kind Farms anticipates hiring four additional full-time employees (for a total of nine) and three additional farm labor contractors (for a total of 10). Kind Farms currently generates approximately five trips per month for pickup or transfer of harvested products to a distributor and anticipates an additional two trips per month post approval (for a total of seven). Kind Farms currently generates one to two deliveries of materials and supplies per week and expects deliveries will remain the same post approval by ensuring all orders of supplies are grouped together for both greenhouses. Kind Farms expects the number of deliveries to temporarily increase to four per week during greenhouse construction.

If approved, the applicant proposes to eliminate outdoor cannabis cultivation and exclusively cultivate indoors. The applicant proposes to build a new 98,784 SF greenhouse in the location of the existing outdoor cultivation area. The CLUO requires indoor cannabis cultivation to be located 100 feet from identified sensitive land uses, including off-site residences. The nearest off-site residences are approximately 750 feet and 800 feet to the southwest of the outdoor canopy on A-N zoned parcels. The total footprint to accommodate the maximum two acres of canopy is approximately 148,176 sf (3.4 acres). Cannabis waste would be composed on-site.  

Kind Farms currently engages in seasonal cultivation for outdoor cultivation, with the planting generally beginning around late May/early June and the harvesting phases ending in October. Kind Farms engages in symbiotic rotation for indoor cultivation within the existing greenhouse. The symbiotic rotation process is a perpetual harvest, meaning that there are immature plants, vegetative plants, and flowering plants growing year-round. Post approval, all cultivation will be in symbiotic rotation in an indoor setting. As required by the CLUO, the applicant has prepared a security plan for the project site. The operation will maintain adequate utilities, access roads, drainage, and sanitation infrastructure in line with County and State regulations, standards, and specifications. All exterior lighting is required to be fully cut-off, shielded, and downward facing to prevent spill over onto other properties, structures, or the night sky.

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 uses, which include activities involving the planting, growing, harvesting, drying, curing, grading, storing, and trimming of cannabis grown onsite, 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 Intensive (A-N). Pursuant to Article 3, of Chapter 2, of Title 8 of the Yolo County Code, cannabis cultivation uses are allowed in the A-N zone upon issuance of a Cannabis Use Permit. The project meets the development requirements and setbacks prescribed for the A-N 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, 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 in 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 indoor (mixed-light greenhouses) methods. The project site is served by PG&E and the project is conditioned to achieve Valley Clean Energy ultra-green or equivalent standard (100 percent renewable and 100 percent carbon-free) within six months of project approval. 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. The existing and future greenhouses will use automatic blackout curtains to control nighttime light escape. 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 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. The applicant proposes the use of recirculating carbon filters within the greenhouses. Odor causing compounds are absorbed onto the pores of carbon where they remain trapped. Once the carbon is spent (saturated), the filters are replaced. Typically, the entire volume of the greenhouse is processed through the carbon filters every fifteen minutes (four air changes per hour).  The odor control plan identified that typical winds are expected to blow mainly from the southwest with a secondary component from the north.

The project relies on groundwater from an onsite agricultural well. A second well may be required for the proposed greenhouse. If Kind Farms determines a second well is necessary, they will obtain a permit from Yolo County to construct a well with a certified professional.  The applicant estimates that approximately one acre foot of water per year is used for the existing canopy, including indoor and outdoor cultivation, and expects water usage to increase to a total of 1.5 acre-foot after the proposed expansion to two acres of canopy within greenhouses. 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 onsite processing, are permitted in agricultural zones with a Cannabis Use Permit. The project site is located in an agriculturally zoned area and is surrounded by parcels in agricultural production, ranging in size from ±68 to ±117 acres. There are approximately six residences on agriculturally zoned parcels within one-half mile of the project site. A vegetative swale surrounds the property’s north, west, and south borders. The parcel to the west is farmed in tomatoes, and the parcels to the south, east, and north are planted in walnuts.

The proposed location of the new greenhouse is relatively flat and is currently used for outdoor cannabis cultivation. The project site, including the cultivation area are visible from County Road 89. The existing outdoor cultivation area (to be eliminated) is set back approximately 336 feet from the western property line. The proposed greenhouse will be setback approximately 432 feet.

The operator has prepared a security plan and will implement measures to secure the property, such as security cameras, motion detectors, alarms, 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
The project meets the buffer requirements from sensitive land uses as set forth in the CLUO. For Existing Licensees outside the Capay Valley, the buffer requirement is 600 feet from outdoor cannabis uses to sensitive land uses, including off-site individual legal residences. The nearest sensitive land uses are two agricultural home sites, approximately 750 feet and 800 feet to the southwest of the existing outdoor canopy. The buffer requirement from indoor cannabis from sensitive land uses is 100 feet for new cannabis-related structures. Therefore, the buffers from the new proposed greenhouse (located approximately where outdoor cultivation currently takes place) will meet the buffers prescribed in the CLUO. Building setbacks for new structures shown in the site plan (Attachment B) meet the setback requirements for new structures in the A-N zone and will be reviewed upon submission of building permit(s).

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 received one Notice of Violation from the Cannabis Unit on September 23, 2019, for cultivation exceeding the scope of the license (over canopy). The Notice of Violation was corrected in a timely manner. No nuisance complaints have been lodged with the Cannabis Unit during this time period.

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 (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, that no additional environmental review is required.

SUMMARY OF PUBLIC CORRESPONDENCE
A Request for Comments was distributed to reviewing agencies on April 16, 2024. Comments received from reviewing agencies were incorporated into the Conditions of Approval (Attachment E) where applicable. A Courtesy Notice was also distributed on April 16, 2024, 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. The project site is located near the southern boundary of the Madison Advisory Committee area, approximately 3.4 miles from the town of Madison; however, the Madison Advisory Committee is not an active committee due to lack of membership. No public comments were received throughout the application review process.

A public hearing notice was mailed to property owners within 1,000 feet on March 28, 2025, and published in the Davis Enterprise on March 30, 2025.

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