Hold a public hearing to consider an appeal of the Planning Commission's decision on the Americana Organics, Inc. Cannabis Use Permit pursuant to the Cannabis Land Use Ordinance (CLUO), and determine that the project is consistent with the previously-certified CLUO Environmental Impact Report (SCH#2018082055). The subject site is located at 3340-78 County Road 89, immediately adjacent to the community of Dunnigan (APN: 051-203-001). (No general fund impact) (Lindbo/Gonzalez) (Est. Time: Staff 10 min/ Applicant 5 min)

The Planning Commission held a public hearing on May 9, 2024, to consider a request for a Cannabis Use Permit to authorize the issuance of a cannabis cultivation license for up to two acres of cannabis canopy for Americana Organics, Inc., and allocation of a distribution license, retail non-storefront (delivery) license, and nursery license. The project also included a request for approval of three buffer exceptions from off-site legal residences in the Heavy Industrial (I-H) zone, and one buffer exception from the Rural Residential- 2 Acre (RR-2) zone boundary. Details of the project can be reviewed in the May 9th Planning Commission staff report, which is included as Attachment F and summarized below.

The Planning Commission approved the Cannabis Use Permit with a 6-0-0 vote but did not approve the applicant’s request for exceptions to the CLUO buffer requirements for legal off-site residences within 600 feet of the project. When deliberating the project, some planning commissioners expressed concern that even though current owners of the affected properties may have approved of the reduced buffer distances, future home buyers may be impacted by the reduced buffer distances. Additionally, some commissioners also commented that when deliberating the draft CLUO (December 2020) the Planning Commission recommended against the use of buffer exceptions and reductions.  

On May 15, 2024, the project applicant/property owner, Eduardo Fernandez (project proponent), filed a timely appeal of the Planning Commission's decision to the Board of Supervisors (Attachment A). In accordance with County Code Section 8-2.225, a timely filing of a notice of appeal nullifies the decision of the Planning Commission, whose decision shall serve as a recommendation to the Board.

Staff has carefully reviewed the issues raised in the appeal and has determined that the arguments identified in the appeal warrant the Board of Supervisors consideration of the requested exceptions to the CLUO buffer requirements for off-site legal residences within 600 feet of the project and from the RR-2 zone boundary for the reasons set forth below. Staff recommends that the Board of Supervisors consider the applicant’s requests for exceptions to the CLUO buffer based on consideration of project-specific and/or site-specific factors, including the letters of support submitted by the affected landowners (see Attachment G) and the financial hardship that would be imposed on the applicant if the buffer exceptions are not approved. The review of exceptions to the CLUO buffer requirements is discretionary and may be approved by the County decision making body based on consideration of project-specific and/or site-specific factors, including but not limited to considerations of compatibility with surrounding land uses.

BACKGROUND
The subject property is located immediately adjacent to the community of Dunnigan, at 3340-78 County Road 89, in an area designated for agricultural uses and zoned Agricultural Intensive (A-N). The property is approximately 16.4 acres in size and cannabis related uses are located within a four-acre footprint in the center of the project site, screened by a six-foot-tall chain link fence. The remaining 12± acres of the property consist of cleared land previously farmed in alfalfa/hay, two residential storage buildings, and two manufactured homes located north of the cultivation area used by long-term permanent employees. Americana Organics has been cultivating cannabis on a continuous basis under validly-issued county and state licenses since 2017. Cannabis cultivation and associated uses, such as onsite processing, distribution, retail non-storefront activities, and nurseries, require the issuance of a Use Permit in the A-N zone pursuant to the CLUO.

In December 2022, Americana Organics applied for a Use Permit to allow cannabis cultivation and associated uses, including distribution, retail non-storefront, and nursery, and requested buffer exceptions for off-site legal residences and from the RR-2 zone boundary within 600 feet of the project area. Planning staff reviewed the project for consistency with the Countywide General Plan and conducted a thorough review of the project against the applicable provisions of the CLUO, the CLUO EIR, and the County’s Zoning Regulations. The project meets the development requirements and setbacks prescribed for the A-N zone and the CLUO allows existing licensees to request buffer exceptions if they cannot meet the required buffer distances from cannabis uses to off-site CLUO sensitive land uses. Buffer exception requests are discretionary and may be approved by the County based on consideration of project-specific and/or site-specific factors including, but not limited to, considerations of compatibility with surrounding land uses.

As proposed, the project does not meet the CLUO buffer requirements from sensitive land uses. The applicant is requesting three CLUO buffer exceptions from off-site legal residences in the I-H zone located closer than 600 feet from the extent of the outdoor cannabis cultivation area. Respectively, the three residences are approximately ±480 feet, ±390 feet, and ±520 feet away from the existing outdoor cannabis cultivation area. In addition, the applicant is also requesting a buffer exception from the RR-2 zone boundary within ±280 feet of the outdoor cannabis cultivation area. All of the property owners affected by the requested buffer exceptions submitted letters in support of the project.

The Dunnigan Citizen’s Advisory Committee (CAC) recommended approval of the project to the Planning Commission at their January 17, 2024, meeting, contingent upon a formal statement from the landowner of the RR-2 zoned parcel. Letters of support from the affected property owners, including the RR-2 landowner, have been submitted to the County. These statements have been made a part of the record in Attachment G of the staff report materials.

Prior to the May 9th Planning Commission meeting, staff also followed up with the affected property owners by phone to ensure that the letters of support were still valid and to confirm they had received the public hearing notice mailed on April 26, 2024. No further concerns were expressed about the proposed project, including requested buffer exceptions, during these calls. It can also be noted that the operator has not received a Notice of Violation from the Cannabis Unit and no formal nuisance complaints have been lodged with the Cannabis Unit.

During the public comment period at the May 9th Planning Commission meeting, a landowner to the north (Murillo) of the project site described his concerns to the Planning Commission about the odor associated with the cannabis operation. Mr. Murillo’s property is located approximately 1,500 feet north of the Americana Organics cultivation area. Although odor is a common concern for most cannabis operations, the Yolo County Cannabis Unit has not received formal complaints against Americana Organics regarding odor, or otherwise.

At the Planning Commission hearing, the Commission did not adopt staff’s recommendation to authorize the buffer exceptions. As part of the Planning Commission’s approval at the May 9th public hearing, the Commission modified the Recommended Actions to clarify that the 600-foot buffer shall apply to all existing residences located on residentially-zoned parcels.
 

The CLUO allows existing licensees to request buffer exceptions if they cannot meet the required buffer distances from cannabis uses to off-site CLUO sensitive land uses. The project applicant has requested four CLUO buffer exceptions: three from off-site legal residences in the I-H zone and one from a residential zone (RR-2) boundary. Note 5 of buffer table in Section 8-2.1408(E) of the CLUO states, “when deliberating a Cannabis Use Permit application for Existing Licensees only, reductions of more than ten percent of the required buffer distances described may be approved by the County based on considerations of project-specific and/or site-specific factors including but not limited to considerations of compatibility with surrounding land uses.” Two of the homes in the I-H zone that are affected by the buffer exception request are located on parcels operating as an auto wrecking yard and contain solid fencing along the front of the properties adjacent to County Road 99W. One home in the I-H zone affected by the buffer exception request is located immediately south of the wrecking yard, but does not appear to contain an industrial use or business. Mature trees on the east side of County Road 99W effectively screen the view of the outdoor cannabis activities. The RR-2 zoned parcel contains one residence located in the western half of the property approximately 280 feet from County Road 99W, and approximnately 460 feet away from Americana Organics outdoor cannabis cultivation area. The RR-2 zoned parcel contains mature trees along the front property line on the west side of County Road 99W and there is a mature line of trees along the eastern side of County Road 99W that screen the view of the outdoor cannabis activities.
 

Planning staff consulted with the Agricultural Commissioners' Office, Building Division, Public Works Division, Environmental Health Division, various agencies, and interested parties, and have received input from the Office of the County Counsel.