ZF #2023-042: Consider a request for a Cannabis Use Permit to allow issuance of a cannabis cultivation license for up to two acres of canopy for Y.O.L.O. Nursery, LLC., issuance of a distribution license, and determine the project falls within the scope of the previously certified Yolo County Cannabis Land Use Ordinance Environmental Impact Report and no further environmental review is required under the California Environmental Quality Act (CEQA). The project is located on a ±17.5-acre agriculturally zoned parcel at 33543 County Road 13, approximately 600 feet southwest of the unincorporated community of Zamora (055-140-007). (Applicant: Damien Galford/Owner: Y.O.L.O. Nursery, LLC) (Planner: Aaron Brown)

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 distribution uses. The allowance of up to two acres of cannabis canopy for Y.O.L.O. Nursery, LLC (“YOLO Nursery”), will provide additional business opportunity for the operator to continue to compete in the regulated cannabis industry. The distribution license will contribute to the growth of the cannabis market in Yolo County by providing services to other cannabis operators that may not have the capacity 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 ±17.5-acre agriculturally zoned parcel, located off County Road 13, approximately 600 feet southwest of the unincorporated community of Zamora. Premium Ace Nursery, Inc. (“Premium Ace Nursery”) cultivated cannabis annually under validly issued County and State licenses from 2017 to March 31, 2025, when the County license expired. Premium Ace Nursery, therefore, is considered an “existing licensee” by definition of the Cannabis Land Use Ordinance ("CLUO"). The property owner, YOLO Nursery, LLC, submitted an application for a Cannabis Use Permit in December 2023. The Cannabis Use Permit application clarified that upon approval of a Cannabis Use Permit, the Premium Ace Nursery license would terminate, and future cultivation activities would commence under the YOLO Nursery entity. The Premium Ace Nursery license was previously held by Linus Rapien, and daily operations were managed by Damien Galford, Mr. Rapien’s nephew. The YOLO Nursery entity includes Damien Galford, Linus Rapien, Samuel Galford, and Robin Wilson-Heckathorn. Unfortunately, Linus Rapien, the sole licensee under the Premium Ace Nursery license, passed away in the summer of 2024. As such, the Premium Ace Nursery license expired on March 31, 2025, and could not be renewed at the County level (transfers of licenses are not allowed). When evaluating the merits of this Cannabis Use Permit application, staff analyzed the previous operations of Premium Ace Nursery, with the knowledge that future cannabis activities would be undertaken by the property owner, YOLO Nursery, including those individuals who were previously involved with Premium Ace Nursery. Essentially, Premium Ace Nursery changed its business name to YOLO Nursery and added additional owners, which the CLUO and Cannabis Code allow.
 

The existing cultivation site consists of four 3,600 square-foot (sf) greenhouses, one 2,070 sf greenhouse, a 3,500 sf barn used for drying and processing, a 1,100 sf shop used for drying and processing, and an outdoor cannabis cultivation area. The existing greenhouses account for approximately 0.25-acre of flowering canopy. The outdoor cultivation area has a total footprint of approximately 1.84 acres and accounts for approximately 0.75-acre of flowering canopy. The remaining ±14.5 acres are relatively flat, with portions planted in grapevines (previously used for fruit and root stock), a pasture area, residential outbuildings, and an unoccupied residential dwelling. In the early 1970’s, the property was developed as a grapevine nursery and operated commercially until 2017 when it was converted to cannabis cultivation. The property is served by an existing on-site groundwater well for agricultural use, and a water delivery service for drinking water. The applicant proposes a new septic system and restrooms for employee use. Access to the property is from County Road 13 via a private driveway. The surrounding land uses are zoned A-N and are generally agricultural — the properties on all sides of the project are mature almond orchards, with County Road 13 bordering the property to the north.

YOLO Nursery is seeking to obtain a cannabis cultivation license for one additional acre of cannabis canopy (for a total of two acres of canopy), and the issuance of a distribution license, which would provide additional business opportunity for the operator. A distribution license would allow for the procurement, rolling, packaging, labeling, storage, sale, and transport of cannabis products between the site and other licensed facilities. The additional one acre of canopy would be located immediately south of the existing outdoor cultivation area. YOLO Nursery proposes to construct an 1,800 sf processing building and a 240 sf ADA accessible modular restroom for employee use in a previously disturbed portion of the property. Cannabis waste is composted on-site and/or disposed of in compliance with county and state regulations. 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 full cut-off, shielded, and downward facing to prevent spill over onto other properties, structures, or the night sky.
 

YOLO Nursery (previously licensed as Premium Ace Nursery) previously employed three full time employees and approximately five full time contracted laborers, and five contracted laborers for harvesting and trimming. Upon approval of the Cannabis Use Permit and expansion to two acres of canopy and issuance of a distribution license, YOLO Nursery plans to employ up to 10 full-time employees, 15 contracted laborers for harvesting and trimming, and additional contractors as needed for various projects. YOLO Nursery anticipates one truck trip per week for bulk deliveries and pickups, as well as one vendor trip per day. Cultivation Operations generally occur Monday through Saturday, and occasionally on Sundays, from 5:00 AM to 5:00 PM. Cultivation operations located within the greenhouses typically occurs from February 1st through December 1st. Cultivation operations located outdoors typically occurs from June 1st through November 1st. Processing and maintenance operations occur year-round.
 

A small portion of the north side of the project site (abutting County Road 13) is designated as FEMA Flood Zone A, an area with a one percent annual chance of flooding, otherwise referred to as a 100-year flood. No structures are proposed within the flood zone. The remainder of the property, including all the structures used in the cannabis operation, is not located in the flood zone.

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 which includes activities involving the planting, growing, harvesting, drying, during, grading, storing, and trimming of cannabis grown on site 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:

Based on statewide and local voter support, accept cannabis cultivation, nurseries, processing, manufacturing, retail, and microbusiness operations as a new agricultural opportunity in support of agricultural economic development, preservation of agricultural land, and creation of opportunities for new farmers. Recognize unique challenges, and competing and evolving community values, by allowing for adaptive regulatory considerations over time.
 

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 and distribution 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 (Attachment E). The operators are 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

The project involves the expansion of cannabis cultivation canopy from one acre to two acres for YOLO Nursery, utilizing temporary hoop houses for outdoor cannabis cultivation 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. 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 prepared by Yorke Engineering, LLC, 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 odor neutralizers for the outdoor canopy, and passive controls such as additional vegetation barriers, relocation of the outdoor grow area, or planting of different plant strains. Active controls for indoor cannabis operations may include use of carbon filters, odor neutralizers, or scrubber systems. The odor control plan identified that typical winds are expected to blow mainly from the north-northwest and south-southeast, parallel with the mountain range to the west. The odor control plan concluded that there are no buildings that meet the criteria for sensitive land uses within 2,000 feet and  downwind of the cultivation site.

The site is served by an existing groundwater well and septic system. The applicant anticipates the existing well will accommodate the proposed addition of one acre of canopy. The applicant currently uses five acre-feet of water per year and estimates that water usage will increase to approximately eight acre-feet of water per year upon expansion of the project for a total of two acres of canopy. 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 distribution, 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 121 acres to 160 acres. There are approximately two residences on an agriculturally zoned parcel within one-half mile of the project site, and approximately 16 residences on residential and industrial zoned land within one half mile of the project site in the unincorporated community of Zamora. The surrounding land uses are primarily agricultural with parcels in every direction of the project site planted in mature almond orchards.  The cultivation area is relatively flat and was previously used as a grapevine nursery from the early 1970’s until 2017, when it was converted to be used for cannabis cultivation.
 

The cultivation area is shielded from the public right-of-way by an existing row of trees at the front of the parcel, as well as the mature almond orchards on neighboring parcels. County Road 13 borders the parcel to the north, and runs parallel to Willow Spring Creek, which runs along the north property line of the parcel.
 

The operator has prepared a security plan and will implement measures to secure the property, such as security cameras, 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

All existing structures used for cannabis activities, including the existing hoop houses, shipping containers, storage structures, and shop (used for drying and processing) meet the setback requirements for the A-N zone. Building setbacks for new structures shown on the site plan (i.e., 1,800 sf processing building, and modular restroom) in Attachment B, meet the setback requirements for new structures in the A-N zone and will be reviewed for compliance with development regulations upon submission of building permit(s).
 

The project currently meets the buffer requirements from sensitive land uses as set forth in the CLUO. For existing licensees outside the Capay Valley, the buffer requirement for outdoor cannabis uses from offsite individual legal residences in non-residential zones is 600 feet, measured from the closest point of any outdoor area containing cannabis. The nearest offsite residence on an agriculturally zoned parcel is approximately 0.38-mile northwest of the outdoor cultivation area. For existing Licensees, the CLUO requires a 600 ft buffer from residentially zoned land (measured from the zone boundary) to the closest point of any structure or outdoor area containing cannabis. The nearest homesite within the unincorporated community of Zamora is approximately 0.25 mile northeast of the existing outdoor canopy (the proposed new canopy area is a greater distance from the home than the existing canopy). YOLO Nursery currently meets and will continue to maintain over a 600 ft buffer from the nearest residentially zoned land (the nearest cannabis use is the existing shop used for drying and processing and is located approximately 765 ft from the nearest residential zone boundary.) The applicable provisions of the CLUO are included as conditions of approval.
 

Pursuant to Policy CO-2.22 of the Yolo County General Plan, and as codified in the CLUO and included in the Conditions of Approval, no new development requiring a building permit, including grading activities, shall be located within 100-feet of waterbodies or watercourses. The project is in compliance with this requirement as all existing and proposed buildings are more than 100-feet from the nearest waterbody or watercourse (Willow Spring Creek) to the north.

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, nor have any nuisance complaints been lodged against the operator with the Cannabis Unit.
 

Staff coordinated with the County Department of Financial Services to produce a history of cannabis and property tax payments for the site, which verified that YOLO Nursery and the property owner are up to date on their property taxes and cannabis taxes.

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.

A Request for Comments was distributed to reviewing agencies on July 31, 2024. Comments received from reviewing agencies were incorporated into the Conditions of Approval (Attachment E) where applicable. A Courtesy Notice was also distributed on July 31, 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 within the boundary of the Yolo-Zamora Citizens Advisory Committee (CAC) area; however, the Yolo-Zamora (CAC) is not an active committee due to lack of membership, and therefore did not convene to discuss and make a recommendation on the project. No public comments were received throughout the application review process.

The Yolo County Agricultural Commissioner’s Office commented on August 13, 2024, that there is a concern for pesticide drift due to the proximity of the almond orchards to the west and east of the project site. Due to this, the Agricultural Commissioner recommends that the cannabis owner establishes a good neighbor policy with the almond orchard owners. The Agricultural Commissioner acknowledged that the applicant would have to obtain an Operator ID for pesticide use issued by the Agricultural Department prior to any application of pesticides. YOLO Nursery would also be responsible for all employees who apply pesticides, requiring that employees must hold a current Private Application Certificate (PAC) or Qualified Applicator License (QAL), follow all applicable pesticide laws and regulations, and report all pesticide use to the Agricultural Department by the 10th of the following month that the application took place.

A public hearing notice was mailed to property owners within 1,000 feet on June 27, 2025, and published in the Davis Enterprise on June 29, 2025.

Staff consulted with the 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