Agenda Item: 2 Hearing Date: October 28, 2020 Project/Case No.: 14786/OA-10-20-57082 Applicant: City of Ventura Planner: Peter Gilli, AICP, Community Development Director Location: Citywide Environmental Review: Exempt from CEQA by the “General Rule” Section 15378 PROJECT DESCRIPTION Request for a Zoning Ordinance Amendment to Section 24.105.200 of the Zoning Ordinance to allow commercial cannabis activities including retail, manufacturing, testing labs, and distribution, but to continue to prohibit cultivation. STAFF RECOMMENDATION That the Planning Commission forward a recommendation to the City Council to approve the Zoning Ordinance Amendment. BACKGROUND At their meeting on October 12, 2020, City Council endorsed a framework for commercial cannabis regulations. The commercial cannabis regulations would be unique in that there would be minimal zoning regulations applied, and it would be a competitive, merit-based process where only a finite number of permits will be allowed. STAFF ANALYSIS Zoning Ordinance Amendment Currently, Section 24.105.200 of the zoning ordinance prohibits commercial cannabis uses altogether, except for delivery which is specifically allowed by State law. In order to allow for the commercial cannabis regulations that City Council supports, an amendment is needed to the zoning ordinance. PROJ-14786 PC/10/28/20/PG Page 1 of 3 The recommended changes are that subject to being granted a permit through a merit- based regulatory process that will be located in Chapter 6.4.20 of the Municipal Code, that a: Retail cannabis uses meet the zoning ordinance definition of Retail Sales uses. The proposed ordinance amendment would allow retail cannabis in zoning districts that allow Retail Sales uses by right. Districts include M-1, M-2, MPD, CMXD, MXD, CPD, HC, C-2, C-1A, T4.3.5, T4.1 Main, T4.4, T4.5, T4.6, T5.1, T5.2 and T6.1. Testing laboratories for cannabis meet the zoning ordinance definition of Research or Laboratory Services uses. The proposed ordinance amendment would allow testing laboratories in zoning districts that allow Research or Laboratory Services uses by right. Districts include M-1, M-2 and MPD. Distribution for cannabis meet the zoning ordinance definition of Wholesaling and Distribution uses. The proposed ordinance amendment would allow cannabis distribution in zoning districts that allow Wholesaling and Distribution uses by right. Districts include M-1, M-2 and MPD. Manufacturers of cannabis products meet the zoning ordinance definition of Light Industrial or General Industrial depending on the specifics of the cannabis manufacturing business. The proposed ordinance amendment would allow cannabis manufacturing in zoning districts that allow Light Industrial or General Industrial uses by right. Light Industrial is allowed in M-1, M-2, MPD and MXD. Cultivation will continue to be prohibited, based on City Council direction. The last cannabis business type is microbusinesses, which are businesses that have three of the following types: retail, distribution, manufacturing and cultivation. Since cultivation is prohibited, a microbusiness is basically retail, distribution and manufacturing combined in one business. As a result, microbusinesses will effectively only be allowed in industrial districts. The application process for commercial cannabis will not be a function of the Planning Division of the Community Development Department, and this ordinance amendment is the only aspect of the framework that involves the Planning Commission. The application process for commercial cannabis will be managed by the Administration Division of the Community Development Department, and the permits will be awarded by the City Manager. For reference, the City Council’s direction was to limit the number of retail cannabis operations to a maximum of 2, citywide, and a combination of the industrial type cannabis operations to a maximum of 5, citywide. Dependent on Tax Initiative Vote City Council direction is that commercial cannabis regulation is completely dependent on the voters approving a tax measure for cannabis, but the priority is to launch the application process in early January 2021. PROJ-14786 PC/10/28/20/PG Page 2 of 3 In order to launch the commercial cannabis program in early January 2021, it is necessary that this Planning Commission hearing occur before the November 3 election date. But, if the voters turn down the cannabis tax initiative, then staff will withdraw this city-initiated ordinance amendment and no further work would occur for these regulations. The zoning ordinance would continue to prohibit commercial cannabis except for deliveries. But if the voters approve the tax measure, the City Council will receive the resolutions and ordinances for the commercial cannabis program on November 23, 2020, in addition to the Planning Commission’s recommendation on this zoning ordinance amendment. Environmental Review The proposed Zoning Code Amendments are Exempt from California Environmental Quality Act (CEQA) review by the “General Rule” that CEQA applies only to projects that have a potential for causing a significant effect on the environment. CEQA Guidelines Section 15378 defines “project” as an action which has the potential to result in either a direct physical change to the environment, or a reasonably foreseeable indirect change. ATTACHMENT Draft Planning Commission Zoning Ordnance Amendment with Exhibits PROJ-14786 PC/10/28/20/PG Page 3 of 3 .