STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

In March 2020, the City Council directed City Staff to proceed with a zoning text amendment to allow for a second retail cannabis facility including on-site consumption (consumption lounge) in the downtown district where cannabis and cannabis products may be ingested or topically applied on the premises of a licensed retail facility. In order to accomplish this request the planning and zoning code must be amended through a zoning text amendment. 

The Zoning Map and the Zoning Ordinance text may be substantially amended in two (2) ways: (1) Reclassification of the zoning applicable to a specific property, designating a change from one district to another district, commonly called "rezoning", (2) Changes in the permitted uses or regulations on property within particular zones or citywide, commonly called "text amendments".

Article 1 of Chapter 5 of the Coalinga planning and zoning code establishes local regulations applicable to commercial cannabis operations as may be permitted under the California Medicinal and Adult-Use Cannabis Regulation and Safety Act (SB 94), approved by the Governor on June 27, 2017 or subsequently enacted State law pertaining to the same.

The proposed zoning text amendment will allow for a second retail cannabis permit in the City's downtown overlay district and further permit on-site consumption (consumption lounge) where cannabis can be vaped, smoked, ingested or topically applied on the premises of a licensed cannabis retail facility. This would be consistent with Business and Professions Code section 26200(g) which allows for onsite consumption on the premise of a State licensed cannabis retailer. 

On June 9, 2020 the Planning Commission conducted a public hearing and received public comment and then approved Resolution No. 020P-006 recommending approval of Ordinance No. 840 by the City Council. Some of the comments were in favor of the text amendment and others were related to product movement, restrictions on the sale of plants or seeds, and questions about separating the consumption area from the retail area.

The proposed zoning text amendment will do the following:

1. Amend section 9-2.302 (Table 2.5) to identify the permitted number of retail facilities in the City's downtown overlay district including provisions for on-site consumption.
2. Amend the definitions section of the planning and zoning code related to retail cannabis to include consumption lounges and cafes. 
3. Changes to the retail cannabis regulations (Section 9-02.129) to coincide with the permitted uses. 

A copy of Ordinance No. 840 including a definition of a consumption lounge, is attached for the City Councils review and consideration.

General Plan/Zoning Consistency: The proposed zoning text amendment is consistent with the general plan policies and implementation measures including zoning consistency for commercial cannabis operations. The intent of the Coalinga Commercial Cannabis regulations were to implement state law as it relates to regulating commercial cannabis and cannabis products. The proposed changes in regulations to permit a second retail facility in the City and permit on-site consumption would not be contrary to state law. The State of California has established regulations for permitting on-site consumption which have been incorporated into the ordinance language. 

Public Notification: On June 8, 2020 public hearing notices were posted at multiple public locations and emailed to local paper in accordence with State and local law. 

Environmental Determination: This text amendment has been reviewed in accordance with CEQA and staff has determined that this ordinance change would not have a detrimental effect on the health, safety and welfare of the community and fall under Section 15061(b)(3) - General Rule Exemption. In addition, CEQA will be further reviewed during the permitting process as a Conditional Use Permit is required for both a retail cannabis licenses as well as onsite consumption. 

Reasons for Recommendation

The following standard findings must be made for each Zoning Ordinance amendment:

1. The proposed Zoning Ordinance amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.
2. The proposed Zoning Ordinance amendment is consistent and compatible with the goals, policies, and actions of the General Plan, and the other applicable provisions of the Zoning Ordinance.
3. If applicable, the site is physically suitable (including, but not limited to access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested zoning designations and anticipated land uses/developments.
4. The proposed Zoning Ordinance amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act.

• Do not introduce and waive the first reading of Ordinance No. 840.