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Chairman and Planning and Zoning Commission FROM COMMUNITY DEVELOPMENT DEPARTMENT 100 Parkers Mill • Oswego, IL 60543 (630) 554-3622 • Fax: (630) 551-3975 www.oswegoil.org STAFF REPORT DATE: September 18, 2019 TO: Chairman and Planning and Zoning Commission FROM: Rod Zenner, Community Development Director Natalie Zine, Planner SUBJECT: Staff Report for the October 10, 2019 Planning and Zoning Commission Meeting Text Amendment Adult Use Cannabis Project #1043.19 Purpose To provide the Planning and Zoning Commission with background and proposals regarding regulations for the uses associated with Adult Use Cannabis Background The State of Illinois approved the “Cannabis Regulation and Tax Act” which allows for the recreational use of cannabis within the State of Illinois beginning in January 1, 2020. Though this act allows for cannabis use and specific cannabis related businesses, it does allow communities to regulate and/or prohibit the cannabis businesses within their individual jurisdiction. It does not allow a community to prohibit the possession or consumption of cannabis as long at it is consistent with the guidelines within the State act. The Village Board is currently weighing the options of allowing cannabis related businesses, restricting certain businesses, or prohibiting the businesses altogether within the Village limits. The Board has requested that the Planning and Zoning Commission review the various businesses associated with cannabis outlined in the act and provide a proposed text amendment regarding those uses assuming that the Village Board determines to allow them within the Village corporate limits. Staff is providing a copy of the Illinois Municipal League’s FAQ regarding the new State regulations for your information. Text Amendment - Cannabis Project #1043.19 September 18, 2019 Page 2 Discussion The Act outlines several types of uses related to adult use cannabis. A definition of those types of uses from the Illinois Municipal League’s FAQ is as follows: Craft Grower: A facility operated by an organization or business that is licensed by the Illinois Department of Agriculture to cultivate, dry, cure, and package cannabis that is available for sale at a dispensing organization or for use at a processing organization. A craft grower may contain up to 5,000 square feet of canopy space on its premises for plants in the flowering stage. The Department of Agriculture may authorize an increase or decrease of flowering stage cultivation space in increments of 3,000 square feet by rule based on market need, craft grower capacity and the licensee's history of compliance or noncompliance, with a maximum space of 14,000 square feet for cultivating plants in the flowering stage, which must be cultivated in all stages of growth in an enclosed and secure area. Craft crowers can distribute to a cultivation center, a craft grower, an infuser, or dispensing organization. By State law, a craft grower cannot be located in a residentially zoned property or within 1,500 feet of another craft grower or cultivation center. Cultivation Center: means a facility operated by an organization or business that is licensed by the Department of Agriculture to cultivate, process, transport (unless otherwise limited by the Act) and perform other necessary activities to provide cannabis and cannabis-infused products to cannabis business establishments. Cultivation centers are limited to 210,000 square feet of canopy space for flowering plants. Cultivation centers may sell or distribute to dispensing organizations, craft growers, infusing organizations, and transporters. Dispensing Organization: means a facility operated by an organization or business that is licensed by the Illinois Department of Financial and Professional Regulation to acquire cannabis from a cultivation center, craft grower, processing organization or another dispensary for the purpose of selling or dispensing cannabis, cannabis-infused products, cannabis seeds, paraphernalia or related supplies under the Act to purchasers or to qualified registered medical cannabis patients and caregivers. As used in the Act, a “dispensing organization” shall include a registered medical cannabis organization as defined in the Compassionate Use of Medical Cannabis Program Act or its successor Act that has obtained an Early Approval Adult Use Dispensing Organization License. Dispensing organizations cannot sell through a drive-thru window, vending machines, or transport to residents or other locations for sale. Per the Act, they are limited to the hours of 6:00am to 10:00 pm and cannot operate unless two people are working at the same time. A dispensary cannot be located within 1,500 feet of another dispensary. They also cannot advertise within 1,000 feet of a school, playground, hospital and health care facilities, recreation centers, child care centers, public parks, libraries, or arcade. Infuser Organization: or "infuser" means a facility operated by an organization or business that is licensed by the Illinois Department of Agriculture to directly incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis-infused product. They may only dell or distribute through a dispensary. They cannot be located within a residential zone. Processing Organization: A facility operated by an organization or business that is licensed by the Illinois Department of Agriculture to either extract constituent chemicals or compounds to Text Amendment - Cannabis Project #1043.19 September 18, 2019 Page 3 produce cannabis concentrate or incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis product, per the Cannabis Regulation and Tax Act, (P.A. 101- 0027), as it may be amended from time-to-time, and regulations promulgated thereunder. Transportation Organization: An organization or business that is licensed by the Illinois Department of Agriculture to transport cannabis on behalf of a cannabis establishment or a community college licensed under the Community College Cannabis Vocational Training Pilot Program, per the Cannabis Regulation and Tax Act, (P.A. 101-0027), as it may be amended from time-to-time, and regulations promulgated thereunder. Marijuana Smoking Lounge/Marijuana Social Club: A location where you are allowed to consume or purchase and consume cannabis-based products Proposed Zoning Requirements: Staff has prepared a decision matrix table at the end of this memorandum to assist in the conversation regarding the proposed uses and potential zoning requirements Zoning Designation Assuming the Village Board determines that cannabis-based businesses would be allowed within the Village, it will need to determine what zoning designations would be required for the specific uses. Craft Grower, Cultivation Organization, Processing Organization, Transportation Organization – These uses are specific to the creation and processing of the cannabis product. Based on the Village’s Zoning Ordinance, it is staff’s opinion that these uses are most appropriate for the M-1 Limited Manufacturing and M-2 General Manufacturing Districts. Currently, the M-1 and M-2 allows the production and processing of drugs as a permitted use. Other manufacturing is allowed in the B-3 District, breweries for example, but the nature of these type of producers invites customers to observe and partake in the products at that B-3 location. Cannabis users are specifically different as they prohibit interaction with the general public, do not allow the intake of their product on site, and have security measures that are counter to the intended use and intensity of a B-3 District. Therefore, staff is of the opinion that these uses should be limited to the M-1 and M-2 Districts. Dispensing Organization – This use is limited to the sale of the cannabis product to the general public. It is staff’s opinion that the intensity of this type of use is similar to uses found in the B-2 Community Shopping District and B-3 Community Service and Wholesale District. The use is similar to the intensity of a tobacco store, liquor store, or drug store. The tobacco store and liquor store are uses that have a similar restriction of the sale of their product to customers of a certain age. Drug stores are also similar to the dispensing model as they sell prescriptions based on the records of an individual. Dispensaries must register the sale of product with every transaction. Staff also considered limiting the dispensaries to M-1 and M-2 Districts, but it is staff’s opinion that the manufacturing district is not intended for a retail type of use. The roads in industrial park Text Amendment - Cannabis Project #1043.19 September 18, 2019 Page 4 are designed for large trucks vs. many passenger vehicles as experienced in commercial retail areas. The parking lots are established based on industrial uses which have a lower parking requirement than retail organizations. Manufacturing districts are not designed to provide visibility of the units for the general public. Staff would recommend dispensaries be located in highly visible areas which can provide more security than an industrial location hidden from view from the public road. Smoking Lounge and Social Clubs/on premises consumption – It is staff’s opinion that these uses should not be allowed within the Village. These uses would encourage patrons to visit their location, consume product, and then leave the site in their vehicle. As there is not a reliable way to determine if a user is under the influence, it will be difficult for the police to identify if a driver was impaired. The Village Board has also indicated that they are not in favor of this type of use within the Village. Special Use The Village has the ability to allow the proposed uses as permitted by right or to require a Special Use Permit. The Special Use Permit would require a petitioner to come before the Planning and Zoning Commission for a public hearing and recommendation. That would then be forwarded to the Village Board for final decision. Under a Special Use permit, the Village could require specific conditions that would mitigate any impacts of a proposed use.
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