I. RECOMMENDATION:
Staff recommends approval of Conditional Use Permit Application Number CUP 21-01 by adopting Resolution No. 021P-001 with conditions for a retail cannabis facility with delivery and onsite consumption to be located at 144 E. Durian Ave.
II. BACKGROUND:
On January 12, 2021, the Community Development Department received a Conditional Use Permit application from Casey Dalton of Coalinga Retail Partners, LLC (further identified as “applicant”) to open a retail cannabis facility in the existing building located at 144 E. Durian Ave. Staff accepted the application on January 19, 2021 and began processing the application for a conditional use permit.
Conditional use permits are issued for uses that require special consideration to ensure that they can be designed, located, and operated in a manner that will not interfere with the use and enjoyment of surrounding properties. The process for review of Conditional Use Permit applications is designed to evaluate possible adverse impacts and to minimize them where possible through the imposition of specific conditions.
III. PROPOSAL AND ANALYSIS:
Project Summary: The project applicant proposes to open a retail cannabis facility with consumption lounge and delivery service in the existing building at 144 E. Durian Ave. A cannabis consumption lounge shall mean a location with both onsite retail sale and areas to consume cannabis or cannabis products. A consumption cafe/lounge shall have a licensed retail premises that is a physical location from which commercial cannabis activities are conducted. The consumption cafe/lounge shall only sell cannabis or cannabis products to adults 21 years of age or older for onsite consumption, either through smoking, vaping, or ingestion of edible or topical products. The space occupied by a consumption cafe/lounge shall be definite and distinct from the space where other activities licensed are exercised and shall be accessed through a separate entrance. Onsite Consumption lounges and cafes shall only be permitted in the Downtown Overlay District.
CUP Analysis
General Plan/Zoning Consistency: The current zoning and land use designation for the subject property is (CG) Commercial General. Retail Sales (consumption lounge), cannabis is permitted subject to approval of a conditional use permit (CUP) and Regulatory Permit issued by the Police Chief.
Location/Building (APN: 072-131-03): The property at 144 E. Durian Ave is approximately 4,800 square feet and is currently vacant with an anticipated interior square footage of 4,400 square feet. Coalinga Retail Partners intend to remodel the facility, which will not result in changes to total interior square footage. The remodel will include demo, construction of various rooms, electrical, mechanical, painting, finish work and signage. A copy of the floor plans and elevations for the first and second story have been included. Here is a breakdown of the interior square footage.
Location
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Square Footage
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Retail Area
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1,758
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Office
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168
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Hallways
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456
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Lounge Area (Future Space on Plan)
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1,124
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Restroom
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180
|
Breakroom
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266
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Storage
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448
|
Surrounding Land Use Setting:
Staff has determined that there are no land use compatibility and/or transitional concerns related to the placement and approval of this use.
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South
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Commercial (Office/Retail)
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West
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Commercial/Public Facilities (Frame Park)
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East
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Commercial (Office/Retail)
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North
|
Commercial (Office/Retail)
|
Section 9-5.129(d)(9) specifies that a retail premises/facility shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued in addition a retail premises/facility shall not be located within one hundred (100) feet of a residential district. Staff has verified that this requirement has been met and the retail location is outside the limited areas for sensitive receptors identified in the planning and zoning code.
Operations: The applicant plans to feature a dual-venue adult use retail cannabis store with a cannabis consumption lounge and a technology-driven delivery service with a range of top-quality licensed products sourced locally and throughout the State. The design will focus on creating an intimate, entertaining, and inclusive facility with a stylish edge. The customers will enter the retail store where they will be asked for their ID and be checked into the computer system. They will have the ability to speak to a product expert who can provide education and answer any questions prior to making a purchase. The customer will have the option at that point of entering the consumption lounge if they choose.
The consumption lounge is an 1,100 sq foot room that is not accessible from the outside identified as “future” on the initial construction plans. The staff will be well trained on all products carried and also be able to provide education of product qualities (e.g. likely impacts on consumers and on-set times) of the various products and delivery systems (edibles, smoke, topical, and vape). The only cannabis products allowed in the lounge are those purchased by the retail store attached. The delivery service will carry a limited menu and operate out of the back of the store. This will help keep the front of the store strictly for customers in person. The front of the building will be glazed to avoid visual access to the retail space and odor control will be installed to prevent odor from escaping the facility to adjacent properties.
Hours: The retail store including delivery hours of operation are expected to be from 8:00am to 10:00pm daily. Currently, the planning and zoning code limits retail cannabis store hours from 6:00am to 9:00pm unless authorized under the issuance of a conditional use permit which allows the commission to extend those hours to specified time if it is found that the extended hours will not have an impact on the operation and surrounding properties. Staff does not feel that the additional hours (10:00PM) will have an impact on the surrounding properties. The lounge is expected to operate from 10:00am to 2:00am which is consistent with the planning and zoning code for consumption lounges.
Employees: The Applicant’s anticipate requiring a minimum of 6 retail employees to conduct daily operations upon opening and expects 10 employees to manage the consumption lounge. Each employee will be at least the legal age to work in a cannabis retail facility and will be required to possess a valid “Cannabis Employee Permit” issued by the Coalinga Police Department.
Security: The applicant will provide technology to deter any breaches, such as state-of-the-art alarm, camera and lighting systems that significantly exceed state requirements for resolution clarity, frames per second, backup tapes and remote access for law enforcement. They will meet the states requirement for surveillance cameras and data storage.
The facility has been designed to facilitate a robust and integrated system of access-control, commercial grade locks and a backup system that integrates mechanical and electronic access features, alarm systems and surveillance cameras. All security guards will be state-licensed and carry a valid Department of Consumer Affairs’ "Security Guard Card" at all times. One guard shall be on the premises 24-7 to greet patrons, support efficient visitor flow through ID checks and to be instantly available if any employee needs backup assistance in any situation. The applicant’s guards will meet with Coalinga patrol officers to review protocol, exchange cards and ensure seamless coordination of our prevention duties with local law enforcement. The security team will patrol the business during all hours of consumption operations, adding to neighborhood public safety and ensuring patrons are safe, as well as passerby’s. Additionally, the applicant stated that to ensure a safe, pleasant consumption experience, the security guards supporting patrons in the consumption operations will receive additional training to detect early signs of impairment and intoxication.
The security plan and access control plan will be reviewed and approved by the Police Chief in accordance with State and Local law prior to issuance of the applicant’s regulatory permit.
Traffic: The property is situated between 4th Street and 5th Street on E. Durian Ave, with West Elm being a major arterial in the City. The total Average Daily Traffic (ADT) volume on West Elm and North 5th Street is 7,952 vehicles. Traffic is expected to increase with the proposed use, however, it is not expected to exceed that expected volumes beyond that of a typical retail operation. It is expected to see an increase at the initial opening of the facility then balance out during normal operating conditions (100 vehicle trips per day). Determining traffic levels for a retail cannabis operation is difficult to estimate as there are very few state licensed dispensaries operating within a rural environment similar to the City of Coalinga. However, with an existing facility currently operating in Coalinga, it has not impacted the traffic nor parking availability in the immediate area.
Parking: The parking standard for retail cannabis operations is 1/300 square foot of floor area. Therefore, this facility is required to provide 15 parking stalls for its staff and patrons. However, this facility is centrally located downtown in Coalinga Plaza and can take advantage of the parking available along its frontage and surrounding downtown area. There are 8 parking stalls that are directly in front of the facility with an additional 8 stalls located in front of the adjacent AT&T building which never uses the open stalls for operations. In addition, there is a City parking facility adjacent to the proposed locations building to the north which can accommodate additional parking as well. There are also several other parking locations in the downtown area near the proposed facility that can be used to accommodate parking demand. Lastly, this facility will operate during normal business hours similar to that of surrounding uses, however, when parking demand is increased in the evening hours, surrounding uses will be closed and available parking in the downtown will be readily available.
Delivery: The proposed cannabis retail and consumption lounge facility will provide delivery services in accordance with the planning and zoning code and state law.
Signage: Cannabis facilities are typically permitted one attached sign per street frontage that does not exceed twelve (12) square feet in area or 20 percent of the window area of the retail facility, whichever is less, unless a larger sign is permitted under a conditional use permit not exceeding that of the Downtown Overlay District. Detached signs are not permitted.
The applicant is proposing two (2) light blue (PMS 2191) illuminated wall mounted signs totaling approximately 58 square feet (see attached elevation plan for sign style). One will be located on the west facing building frontage (Durian Ave at 20 square feet) and the other south facing (City Parking Lot at 38 square feet). The sign code, within the downtown overlay district, allows for 0.5 square feet of sign area per linear foot of frontage. Based on review of the signage plan, the square footage, linear frontage, location and types of signs proposed, the proposed signs meet the sign regulations within the downtown overlay district as prescribed by the City’s Cannabis Retail Sign Regulations.
Public Notification
Public hearing notices were sent to all property owners within 300’ feet of the site and posted as required by Local and State law.
Environmental Considerations: Since this proposed use is not expanding the footprint of the existing building and a permitted use subject to CUP, the proposed project has been determined to be exempt from CEQA in accordance with Section 15301(a) for existing facilities. A notice of exemption will be filed with the Fresno County Clerk’s Office once approval has been granted for this application.
IV. FISCAL IMPACT:
The City is expected to receive cannabis tax and licensing revenues from this facility including newly created local jobs.
V. REASONS FOR RECOMMENDATION:
A Conditional Use Permit shall only be granted if the Planning Commission determines that the project as submitted or as modified conforms to all of the following criteria. If the Planning Commission determines that it is not possible to make all of the required findings, the application shall be denied. The specific basis for denial shall be established for the record.
General Plan consistency: Approval of the proposed project will advance the goals and objectives of and is consistent with the policies of the General Plan and any other applicable plan that the City has adopted;
Neighborhood compatibility: The location, size, design, bulk, coverage, density, traffic generation and operating characteristics of the proposed project are consistent with the purposes of the district where it is located, and will not have an adverse effect on the neighborhood and surrounding properties;
Asset for the neighborhood: The nature, use and architectural/design features of the proposed development make it attractive, functional and convenient. The proposed development enhances the successful operation of the surrounding area in its basic community functions, or provides an essential service to the community or region. |