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Planning Commission Hearing Staff Report Hearing Date: October 23, 2019

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Planning Commission Hearing Staff Report Hearing Date: October 23, 2019 Planning Commission Hearing Staff Report Hearing Date: October 23, 2019 ITEM 3* The Provo City Department of Development Services requests an ordinance amendment to Sections 14.06.020; 14.08.020; 14.24.020; 14.26.020; 14.27.020; 14.27A.020; 14.28.020; and 14.29.020, to add a definition for Cannabis Production Establishment, to allow it as a permitted use in the A1.10 Agricultural and the FI Freeway Industrial Zones, and to list that use as not permitted in all other Agricultural and Industrial Zones. City-wide application. Brandon Larsen (801) 852-6408 PLOTA20190365 Applicant: Development Services Relevant History: Medical cannabis has been a frequently addressed subject in recent Utah State legislative sessions, Staff Coordinator: Brandon Larsen including the 2019 First Special Session. Recent amendments to Section 4-41a-406 of the Utah Code, as Property Owner: City-wide well as an inquiry to Development Services regarding the processing of cannabis, have caused staff to consider where cannabis production establishments should be *Council Action Required: Yes permitted within the City. Summary of Key Issues: Amendments to Section 4-41a-406 of the Utah Code provide that cannabis production establishments are permitted in all industrial and all ALTERNATIVE ACTIONS agricultural zones, unless a municipality has 1. Continue to a future date to obtain designated by ordinance at least one industrial zone additional information or to further consider (and at least one agricultural zone) in which the information presented. The next available operation of a cannabis production establishment is a permitted use. meeting date is November 13, 2019, at Staff has received a request for information 6:00 P.M. regarding the processing of cannabis—particularly where it could occur within the City. 2. Deny the requested text amendment. Approximately 50-percent of the land in the City lies This action would not be consistent with the in either an agricultural or industrial zone. recommendations of the Staff Report. The The legal use of, and laws regarding, medical Planning Commission should state new cannabis is relatively new to the City and State. findings. Staff Recommendation: Staff recommends forwarding a positive recommendation of the language proposed in Attachment “A,” relating to cannabis production establishments. This action would be consistent with the recommendations of the Staff Report. Planning Commission Staff Report Item 3* October 23, 2019 Page 2 OVERVIEW and ANALYSIS With a mandate from the State of Utah requiring that cannabis production establishments be allowed in all agricultural and industrial zones—unless the City acts to establish at least one (1) agricultural zone and one (1) industrial zone that permits such use—and an inquiry from the public regarding where such use can be conducted in the City, staff believes it is important for the City to consider where this use should be permitted within City boundaries. Staff notes the relative newness of the legal, medicinal use of cannabis in Utah and Provo City, as well as the laws for such. Further, approximately 50-percent of the land within the City lies in either an agricultural or industrial zone. It is staff’s opinion that the City should begin administering the use by permitting it in one (1) agricultural zone and one (1) industrial zone, only, with the idea that the City would consider cannabis production establishments in other zones through applicant initiated applications. If approved, this text amendment would permit cannabis production facilities in the A1.10 (Agricultural) Zone and the FI (Freeway Industrial) Zone. The A1.10 Zone requires a minimum parcel/lot size of 10 acres. Nearly all of the A1.10 zoned land is located near the airport (north and east of it). Currently, the cultivation of crops is a permitted use in the A1.10 Zone. All of the FI zoned land is located on the west side of I-15 on the very north end of the City. The minimum parcel/lot size in the FI Zone is 10,000 SF. Currently, drug related uses (e.g., manufacturing of medicinal chemicals or analgesics manufacturing) are conditionally permitted in the FI Zone. There is a combined total of approximately 480 acres of land in the A1.10 and FI Zone. The proposal also includes a definition of cannabis production establishment, which definition reads essentially the same as the definition for such in Subsection 4-41a-102(7) of the Utah Code. FINDINGS OF FACT 1. A portion of Section 4-41a-406 of the Utah Code requires that “the operation of a cannabis production establishment shall be a permitted industrial use [or agricultural use if in an agricultural zone] in any industrial [or agricultural] zone unless the municipality or county has designated by ordinance, before an individual submits a land use permit application for a cannabis production establishment, at least one industrial zone [and one agricultural zone] in which the operation of a cannabis production establishment is a permitted use.” 2. Subsection 4-41a-102(7) of the Utah Code defines cannabis production establishment as “a cannabis cultivation facility, a cannabis processing facility, or an independent cannabis testing laboratory.” The definition of cannabis Planning Commission Staff Report Item 3* October 23, 2019 Page 3 production establishment—in this proposal—points a Provo City Code user to Title 4, Chapter 41a of the Utah Code for a definition of a “cannabis cultivation facility,” a “cannabis processing facility,” or an “independent cannabis testing laboratory.” 3. Subsection 4-41a-102(2) of the Utah Code defines cannabis cultivation facility as follows: “’Cannabis cultivation facility’ means a person that: (a) possesses cannabis; (b) grows or intends to grow cannabis; and (c) sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis processing facility, or a medical cannabis research licensee. 4. Subsection 4-41a-102(4) of the Utah Code defines cannabis processing facility as follows: “‘Cannabis processing facility’ means a person that: (a) acquires or intends to acquire cannabis from a cannabis production establishment or a holder of an industrial hemp processor license under Title 4, Chapter 41, Hemp and Cannabinoid Act; (b) possesses cannabis with the intent to manufacture a cannabis product; (c) manufactures or intends to manufacture a cannabis product from unprocessed cannabis or a cannabis extract; and (d) sells or intends to sell a cannabis product to a medical cannabis pharmacy or a medical cannabis research licensee.” 5. Subsection 4-41a-102(13) of the Utah Code defines independent cannabis testing laboratory as follows: “‘Independent cannabis testing laboratory’ means a person that: (a) conducts a chemical or other analysis of cannabis or a cannabis product; or (b) acquires, possesses, and transports cannabis or a cannabis product with the intent to conduct a chemical or other analysis of the cannabis or cannabis product.” Planning Commission Staff Report Item 3* October 23, 2019 Page 4 CONCLUSIONS Based on the Findings of Fact, Overview, and Analysis of this report, staff recommends the Planning Commission recommend the City Council approve the proposed ordinance amendment found in Attachment “A,” which would add cannabis production establishments as a permitted use in the A1.10 and FI Zone, and prohibit the use of such in all other agricultural or industrial zones in the City. ATTACHMENTS 1. Proposed Text Amendment (Attachment “A”) Planning Commission Staff Report Item 3* October 23, 2019 Page 5 Attachment “A” Cannabis Production Establishments Ordinance Text Amendment Part I Additions to Section 14.06.020 are in red, underlined font: 14.06.020 Definitions For the purposes of this Title, certain words and phrases have the following meanings: “Cannabis Production Establishment” means a cannabis cultivation facility, a cannabis processing facility, or an independent cannabis testing laboratory, as defined in Title 4, Chapter 41a of the Utah Code Annotated 1953, as amended. Part II Additions to Section 14.06.020 are in red, underlined font: 14.08.020(4) Permitted Principal Uses (4) Permitted Principal Uses. The following principal uses and structures, and no others, are permitted in the A1 zone: (a) The following uses shall be permitted in the A1 zone: Use Use Classification No. 1111 One family dwelling - detached (see Section 14.34.310, Provo City Code) Planning Commission Staff Report Item 3* October 23, 2019 Page 6 . 8400 Fishing activities and related services (b) The following use shall be permitted in the A1.10 zone, only: Use No. Use Classification 2830 Drugs (cannabis production establishments only) Part III Additions to Section 14.24.020(4) are in red, underlined font: 14.24.020(4) Permitted Principal Uses (4) Permitted Principal Uses. The following principal uses and structures, and no others, are permitted in the CM zone. (a) The following manufacturing uses are allowed in the CM zone only when they are incidental to the retail sales of the manufactured products on the same premises. Use No. Use Classification 2112 Sausages and other prepared meat products 2113 Poultry and small game dressing and packing 2120 Dairy products 2130 Canning and preserving of fruits, vegetables, and seafood 2150 Bakery products 2170 Confectionery and related products 2200 Textile mill products 2440 Wooden containers Planning Commission Staff Report Item 3* October 23, 2019 Page 7 2500 Furniture and fixtures 2820 Plastic materials and synthetic resins 2830 Drugs (except cannabis production establishments) . Part IV Additions to Section 14.26.020(4) are in red, underlined font: 14.26.020(4) Permitted Principal Uses (4) Permitted Principal Uses. The following principal uses and structures, and no others, are permitted in the MP zone: Use No. Use Classification 2150 Bakery products 2170 Confectionery and related products 2300 Apparel and other finished products made from fabrics, leathers, etc. 2700 Printing, publishing, and allied industries 2830 Drugs (limited to manufacturing, but cannabis production establishments are not a permitted use) .
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