Title
PLN170145 - TOMLINSON SISTERS PARTNERSHIP/MONTEREY NATURALS
Public hearing to consider allowing a cannabis retailer within an existing commercial building in a Light Commercial Zoning District.
Project Location: 19 San Juan Road, Pajaro/Royal Oaks Community, North County Area Plan (APN:117-362-001-000)
Proposed CEQA action: Categorically Exempt per Section 15303 of the CEQA Guidelines
Report
RECOMMENDATION:
It is recommended that the Planning Commission adopt a resolution to:
a. Find that the project is the conversion of an existing small structure from one use to another, which qualifies for a Class 3 Categorical Exemption per Section 15303 of the CEQA Guidelines and none of the exceptions under Section 15300.2 apply; and
b. Approve the Use Permit and General Development Plan Amendment to allow a cannabis retailer use within an existing commercial building.
The attached draft resolution includes findings and evidence for consideration (Exhibit C). Staff recommends approval subject to 10 conditions of approval including 6 conditions with mandatory requirements per the Monterey County Code.
PROJECT INFORMATION:
Agent: Monterey Naturals/L+G, LLG Attorneys at Law (Representative)
Property Owner: Tomlinson Sisters Partnership
APN: 117-362-001-000
Parcel Size: 31,036 square feet
Zoning: Light Commercial or “LC”
Plan Area: North County Area Plan
Flagged and Staked: No
SUMMARY:
Monterey Naturals, on behalf of the property owner Tomlinson Sisters Partnership, has requested a Use Permit to allow a cannabis retailer within an existing tenant space located at 19 San Juan Road, located in a commercial area in the Pajaro/Royal Oaks community.
DISCUSSION:
The owners of Monterey Naturals currently operate a dispensary in Santa Cruz under the name Santa Cruz Naturals. The tenant space where the dispensary is proposed is currently vacant and a coin-operated laundromat currently occupies the neighboring space in the existing building on the site. Monterey Naturals would not begin retailer operations until and unless all required permits and licenses are obtained.
The site is zoned Light Commercial or “LC.” In this case, the property is governed by the North County Area Plan, which classifies the land use designation of the property as Commercial. There is an approved General Development Plan which allows for laundromat, dry cleaners, professional offices, retail uses, and a caretaker unit (Resolution No. ZA94013; Exhibit E). This project would amend that General Development Plan to include commercial cannabis retailer uses. Existing improvements on the property include a driveway and shared parking area, and a 5,353-square foot commercial building. The retailer would occupy 3,345 square feet within the 5,353-square foot building. The existing 2,008 square foot laundromat will remain.
The proposed retailer would provide cannabis products such as cannabis, edibles, concentrates, topicals and tinctures. Services would be provided to adults without medical authorization 21-years of age and older and to established qualified patients and primary caregiver members 18 years of age and older. The activities would occur within an existing commercial building that will be improved to meet current building code standards. Monterey Naturals would utilize an operation model developed by its sister dispensary Santa Cruz Naturals in Aptos, California. Monterey Naturals has submitted a Conditional Use Permit and Cannabis Business Application (Exhibit D-3) that describes the General Development Plan amendment, Business Plan, and includes an Operations Plan and Security Plan. The proposed General Development Plan amendment (Section 3) describes the proposed use and location of the retailer, existing and proposed improvements, and a description of the operation. The Business Plan (Section 4) describes Monterey Naturals operations model including pre-package dispensary products, key personnel, staffing, key partners and associates, community liaisons, and schedule of operation. The Operations Plan (Section 5) includes standard operating procedures, regulatory compliance, facility maintenance and policies, quality control procedures, packaging and labeling, inventory control and storage, patient verification procedures, diversion prevention, vendor procedures, disposal, odor management, and record keeping.
Consistency with Section 21.67.040 for Cannabis Retailers
• Location.
o The site is zoned Light Commercial (LC)
o The nearest school is Watsonville High School, located on Beach Street approximately 3,000 feet northwest of the proposed dispensary.
o The nearest park is Linear Park, located north of the Pajaro River approximately 700 feet northwest of the proposed dispensary.
o The nearest nearest drug recovery facility is Elevate Addiction Services, located 5 miles from the proposed retailer.
o There are no other retailers currently permitted within 1,500 feet of the proposed location.
o The project is located across the street from an existing church. Monterey County Code does not require a setback from churches (see LUAC discussion below)
• Operating Standards.
o In accordance with State law, Monterey Naturals would keep accurate records of commercial cannabis activity and maintain an inventory control and reporting system that accurately documents the location, amounts, and descriptions of all cannabis products throughout the distribution chain. The applicant would have a certified Bookkeeper/Controller as well as a cannabis-specialty CPA. All books and records would be stored on-site and would accessible digitally. The online database would be maintained and include all corporate files, in-house email servers, and tiered access based on company positioning. All records related to commercial cannabis activity as defined by the licensing authorities would be maintained for a minimum of seven years.
o Monterey Naturals would ensure that all cannabis and cannabis products at the retailer are cultivated, manufactured, transported, distributed, and tested by licensed and permitted facilities that maintain operations in full conformance with state and local regulations using appropriate track and trace software.
o Cannabis products would arrive at the retailer pre-packaged. Food-related items would be offered to qualified patients and primary caregivers; however, there will be no food processed on-site. Monterey Naturals would not distribute any cannabis or cannabis product unless the cannabis and cannabis products are labeled and in a tamper-evident package in compliance with state law.
o Monterey Naturals would notify the Monterey County Sherriff’s Office in the event of discrepancies, alteration of records, or security breach.
• Security:
o Uretsky Security, a company licensed by the State of California Bureau of Security and Investigative Services, would provide security to deter and prevent unauthorized entrance into areas containing cannabis products, prevent loitering on the premises of the retailer, and establish limited access areas only to authorized retailer personnel.
o Visitors to the facility will be visible to employees inside the building through a glass door or entrance camera. Visitors will be buzzed in at the front entrance by either a security guard or an employee at the front window. Other entrances will be accessible with key cards.
o All products and currency will be kept in a safe, locked access-controlled area. This area will have the highest security restrictions in the facility and will only be accessible by the Inventory Manager. No other persons will be allowed to access this room at any time, without exceptions.
o Security cameras would be installed on-site to record 24 hours per day, 7 days per week. An alarm system would be installed to detect entry and exit from all secure areas, and panic buttons installed in appropriate locations.
o Deliveries would be supervised by a minimum of two employees. Secured containers would be accessible by code on an electronic keypad and a physical key.
The subject Use Permit would authorize a commercial cannabis retailer use at the site. The Use Permit runs with the land and not the business or property owner. Pursuant to Monterey County Code (MCC) Chapter 7.90, prior to beginning operation, the business operator would need to obtain a Commercial Cannabis Permit and a Business License from the County. After that, they would be required to obtain all applicable State Licenses. Condition of Approval No. 8 requires that appropriate licenses are obtained and maintained.
A draft resolution includes findings and evidence for consideration (Exhibit D). Staff has reviewed the proposed application and determined, as proposed and conditioned, the findings required to grant a Use Permit for a commercial cannabis retailer can be made in this case. As outlined below, the project has been found consistent with the requirements of Section 21.67 of Title 21.
A more detailed discussion is provided in Exhibit B.
CEQA:
Section 15303 of the California Environmental Quality Act exempts the conversion of small structures, from one use to another, where only minor modifications are made to the exterior. The bulk of the proposed modifications will take place within the interior of the structure for the retailer. Minor modifications to the exterior will occur to allow for implementation of the proposed security measures and signage. Approval of the permit would not result in an increase to the existing square footage of the building. Therefore, the project meets the exemption for requiring environmental review, and there are no exceptions which would apply under Section 15300.2.
OTHER AGENCY INVOLVEMENT:
The following agencies have reviewed the project, have comments, and/or have recommended conditions:
Environmental Health Bureau
RMA-Public Works
RMA-Environmental Services
Water Resources Agency
North County Fire Protection District
North County Land Use Advisory Committee
North County Land Use Advisory Committee:
The proposed project was reviewed by the North County Land Use Advisory Committee (LUAC) on August 2, 2017. The LUAC recommended approval of the project as proposed, by a vote of 4 ayes, 1 no, and 0 abstentions (Exhibit C). Comments were made that the improvements to the property would have positive economic impacts to the community, support was expressed for providing access to medical cannabis for those who need it; and a concern was raised about the proximity of the proposed retailer to the church and laundromat. Several members of the public attended the meeting and expressed opposition to the project due to the proximity of the site to the Parishioner Church of Jesus Christ, the potential influence on children that pass-by the site or that attend the church’s Sunday School, concern that the project will attract homeless persons, and that the retailer would be a temptation to rehabilitated drug or alcohol users in the vicinity.
Staff recognizes that there may be social and economic concerns surrounding cannabis activities; however, the project complies with all of the County and State requirements for cannabis activity permitting and licensing including zoning, setbacks, security provisions, and operational standards. From the exterior, the retailer should look no different from any other retail use that may occupy the site.
FINANCING:
Funding for staff time associated with this project is included in the FY18-19 Adopted Budgets for RMA-Planning.
Prepared by: Craig Spencer, Senior Planner, x5233
Reviewed by: Brandon Swanson, RMA Planning Services Manager
Approved by: Carl Holm, AICP, RMA Director
The following attachments are on file with the RMA:
Exhibit A - Vicinity Map
Exhibit B - Discussion
Exhibit C - North County LUAC Minutes
Exhibit D - Draft Resolution including:
Attachment 1 - Conditions of approval
Attachment 2 - Project Plans
Attachment 3 - Development Project Application
Exhibit E - Previously approved General Development Plan