Staff Report- Chairman and Planning Commission

Staff recommends that the Planning Commission adopt Resolution No. 021P-005 with conditions for the development of a new commercial cannabis facility to support indoor cultivation, distribution and manufacturing to be located at 1951 Mercantile Lane.

On March 22, 2021 the Community Development Department received an application for the development of a phased commercial cannabis cultivation, distribution and manufacturing facility at 1951 Mercantile Lane.

Conditional Use Permit Application: In accordance with Section 9-5.128(f) of the Coalinga Planning and Zoning Code related to Commercial Cannabis operations, prior to, or concurrently with, applying for a regulatory permit, the applicant shall process a conditional use permit as required by the City's Land Use Regulations. Information that may be duplicative in the two (2) applications can be incorporated by reference. The conditional use permit shall run with the land. The applicant currently has a regulatory permit application under review with the Police Department and pending City Council approval. The State of California is now accepting applications from commercial cannabis operators who will be subject to the comprehensive set of regulations that the State has adopted.

Site Plan Review: According to Section 9-6.402 of the City of Coalinga Municipal Code requires that all applicable new structures permanent or temporary erected in the City require a site plan review and approval by the Planning Commission for consistency with all applicable zoning regulations.

The purpose of the site plan review is to enable the Community Development Director or the Planning Commission to make findings that a proposed development is in conformity with the intent and provisions of the Coalinga Municipal Code, and to guide the Building Official in the issuance of permits. The proposed project does not fall under the exempt projects and projects qualifying for Administrative Site Plan Review; therefore, the proposed project requires site plan approval from the Coalinga Planning Commission.

California Environmental Quality Act: This application constitutes a project in accordance with the California Quality Act, therefore staff has prepared an environmental analysis as part of this land use application.

Department Comments: Once the application was deemed complete staff requested comments from the necessary City Departments. This proposal including conditions of approval reflect feedback from the necessary City Departments.

Manufacturing and Business Light (MBL) Development Regulations There are several development regulations that staff evaluates prior to recommending approval of a Conditional Use Permit and Site Plan Review application. This site plan application has been reviewed for compliance with the Coalinga Planning and Zoning Code and meets all applicable requirements for the proposed use based on type, location and site constraints.

Development Proposal: This project is a phased commercial cannabis facility that will support the cultivation, distribution and manufacturing of cannabis and cannabis products.  It is planned to be developed in 2 phases:

The proposed project consists of the following components:

General Plan/Zoning Consistency: The General Plan designation for the parcel is (MB) Manufacturing and Business with a zoning designation of Manufacturing and Business Light (MBL). The project proposal is consistent with all the development regulations for Commercial Cannabis developments in addition to the issuance of a City cannabis regulatory and state permit. Currently, the applicant has a commercial cannabis regulatory permit application under review with the police department.

Site Plan Review

According to Section 9-6.402 of the City of Coalinga Municipal Code, a site plan review is required for all development projects within the City. The purpose of the site plan review is to enable the Community Development Director or the Planning Commission to make findings that a proposed development is in conformity with the intent and provisions of the Coalinga Municipal Code, and to guide the Building Official in the issuance of permits. The proposed project does not fall under the exempt projects and projects qualifying for Administrative Site Plan Review; therefore, the proposed project requires site plan approval from the Coalinga Planning Commission.

Findings for Approval

According to Section 9-6.404 of the Coalinga Municipal Code, the Planning Commission shall consider the following findings to approve a site plan:

1)      The proposed construction/alterations are in substantial conformance with the General Plan, zoning ordinance, and any applicable plans adopted by the city.

2)      The proposed construction/alterations conform to the requirements of the applicable Zoning Districts.

3)      The proposed construction/alteration conforms to all applicable design standards and guidelines, as adopted by the City Council.

4)      The construction/alteration will not have significant adverse effects on the public health, safety and welfare.

Staff Analysis

As described in more detail below, City staff has determined the proposed project is in substantial conformance with the General Plan, zoning ordinance, and any applicable plans adopted by the City.

Manufacturing and Business Development Regulations

There are several development regulations that staff reviews prior to recommending approval of a site plan review application. This site plan application has been reviewed for compliance with the Coalinga Planning and Zoning Code and meets all applicable requirements for the proposed use based on type, location and site constraints. 

Access: The primary access point for the development will be located on Mercantile Lane at the southwest corner of the property. According the Fire Department and City Engineer there is adequate space on-site for public safety maneuvering. The need for a secondary ingress/egress point is not necessary since it would be very difficult to provide an additional ingress/egress location without accessing the property from the State Highway (Jayne Ave/SR33 which staff and the City Engineer wanted to avoid. 

Utilities

All utilities are readily available for connection on Mercantile Lane. All utility connections shall be shown on the final site plan and approved by the Planning Department and confirmed by the Public Works Department. Improvement plans will be reviewed and approved by the City Engineer.

Storm Runoff: On-site storm water drainage runoff shall run to the existing storm drain facilities at Mercantile Lane. As a condition of approval, it will be the responsibility of the applicant to confirm sufficient capacity exists in the storm water basin serving this site. Any work needed to the storm water basin serving this development is the responsibility of the applicant. Direct drainage of storm water runoff over public sidewalks not permitted. Storm water runoff shall be directed under sidewalks.

Gas: Public Natural Gas Facilities exist in Mercantile Lane and are available to serve this development. The applicant shall extend natural gas service to the project site. Gas meters may be located within private property but must be accessible to meter readers.

Water: Public Water Facilities exist in Mercantile Lane and are available to serve this development. The applicant shall extend a water service to the project site. The Public Works Director has recommended that water meters be located on or near the property line to ensure ease of meter reading.

Sewer: Public Sewer Facilities exist in Mercantile Lane and are available to serve this development. The applicant shall extend a sewer lateral to the project site. Sewer clean out will be placed at the property line.

Meters: There shall be meters for both water and natural gas which shall be identified on the final site plan when submitted to the Planning Department for final approval. There will be separate landscape and domestic meters in order to differentiate between landscaped water and domestic water per City policy. Since this is a secure facility the water meters shall be located outside the secured area and gas meters shall be placed in a location that are protected from damage. If gas meters are to be located on-site within the secured area the applicant shall work with Public Works to determine the best practice for reading meters. 

Parking: In accordance with section 9-4.302 Table 4.4 of the zoning code, the parking requirement for the proposed development is 1 stall for every 1,000 square feet of building space. The proposed development has met the requirement by providing 62 vehicle stalls including the future expansion area. The total square footage of all structures is 53,850 requiring at least 54 stalls. Lighting has been provided as required in the planning and zoning code.

On the final site plan shade trees shall be provided as required. Shade trees. A minimum of one shade tree for every ten (10) parking spaces shall be provided, which shall achieve fifty (50) percent canopy coverage of paved area at maturity. The shade trees shall be located so as to provide visual relief to long rows of parked vehicles, and to provide shade to pedestrian connections. Canopy-type trees should be used to provide a relatively consistent tree cover that will shade vehicles and pavement. Shade trees shall also be provided at appropriate intervals between perimeter parking spaces. The shade tree species shall be selected from a master tree list maintained by the City. By including this requirement on the final site plan, it will not reduce the parking below that required.

Refuse Containers: The proposed development provides for the required refuse containers and their size, shape and location are consistent with that of the City requirements.

Landscaping: The proposed landscaping exceeds the city’s minimum requirement for landscaped areas as it relates to site frontage, parking, highway setbacks and equipment screening. A separate landscape plan will be submitted to the Community Development Department for review and approval prior to building permit issuance.

Fencing: All interior fencing shall be of material allowed under the planning and zoning code. All fencing adjacent to public rights or way will be a combination of wrought iron and landscaping or of a decorative block material. The heights of the fencing shall not exceed 6 feet.

The proposed project is located within 200 feet of a state highway and shall provide a landscaped area at least fifteen (15) feet deep between the highway right-of-way and any building or parking area for the length of the site frontage facing toward the highway. The property has adequate setback from the state highway right of way which has the adequate landscaping.  

Lighting: Lighting has been reviewed and approved by the Police Department to ensure that there will be no spill over lighting. The Police Department is recommending as part of the conditions of approval that the site meet or exceed the standard of 1.5-foot candle of light within the site to ensure adequate lighting. A photometric plan was prepared and reviewed and approved by the Police Chief. All lighting shall use decorative poles and fixtures with LED technology and avoid HPS lighting in an effort to reduce energy consumption.

Signage: In accordance with the zoning regulations related to Commercial Cannabis facilities, no business-related signage shall be provided except for those federally regulated such as ADA.

Offsite Improvements: The applicant shall furnish and install off-site Sidewalk, Driveway Approaches and Street Lighting on Mercantile Lane frontage as approved by the City Engineer. The applicant shall furnish and install off-site public AC pavement, Curb & Gutter, Sidewalk, and Street Lighting for the property frontage along Polk Avenue (SR33) in accordance with Caltrans Construction requirements. Street lights shall be installed at 150 foot spacing along Polk Avenue/Jayne Ave/SR33.

Conditional Use Permit Analysis

The CUP analysis will look at operation criteria such as security, odor control, hours of operation, ect. The regulatory permit reviewed by the Police Chief and approved by the City Council will consider these items in more depth and to ensure full compliance with the city planning and zoning code related to commercial cannabis operations. 

Project Summary

The project applicant proposes to operate the following cannabis activities:

• Adult-Use and Medicinal (Cultivation, Manufacturing and Distribution).  

CULTIVATION

In accordance with State Law, “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. In addition, a “Cultivation site” means a location where commercial cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combinations of those activities occurs.

DISTRIBUTION

The applicant will distribute only cannabis goods. They shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the licensed distributor’s premises.

MANUFACTURING

The applicant intends operate under a manufacture (volatile) license which uses volatile solvents to manufacture commercial cannabis products for medicinal and adult-use. In addition the applicant proposes to use non-volatile solvents manufacturing practices as well as packaging and labeling, and infusions.

Location: (1951 Mercantile Lane - Map & Floor Plans Attached)

Security: The applicants site protection strategy will address all forms of security concerns and will be required to meet all the security requirements of 9-5.128 of the Planning and Zoning Code as it relates to commercial cannabis activities. The Police Department is currently reviewing the security plan including camera placements, access controls, onsite and perimeter security meet the requirements of the code and the satisfaction of the Police Chief (Section 9-5.128). There will be on-site security provided at this site at all times with a minimum during business hours.  

Building Access: All employees and authorized personnel will enter the building at designated entry area after checking with security personnel at the site entrances who will grant authorization into the facility.

Odor Control: In order to control odor while producing at the above capacity and remaining compliant with §9-5.128(d)(15), the facilities will be equipped with both negative pressure and mass filtration systems. Odor control systems will be checked and replaced as necessary to prevent odor from escaping the facilities and becoming a nuisance to the applicant’s neighbors.

Hours of Operation: Monday through Friday 6:00am to 7:00pm and Saturday and Sundays 7:00am to 4:30pm.

Estimated Employees: 25

Parking: This facility will be accommodated by the (62) parking stalls as shown on the site plan.

Fuel Storage and other Potential Hazardous Materials: The applicant will be required to meet with the Fire Marshall and Building Official to determine the level of safety protection required based on the desired storage of solvents, and all other hazardous materials on site. Known chemicals and solvents to be used will have to be provided to the Fire Chief for review and approval.

Water Use: The applicant is expecting to use 4.6 acre feet of water for the cultivation operation. This is not expected to effect the City’s ability to provide treated water to the community.

Wastewater Disposal: The applicant will not introduce any toxic chemical waste or solvents into the local waste stream and will be required to disclose all products, chemicals, solvents, active ingredients that will be used as part of the extraction and refinement process.

Solid Waste: The applicant will be required to utilize the City of Coalinga’s solid waste hauler (Mid-Valley Disposal for all solid waste needs including destroyed product, green waste, typical solid waste and any other cannabis related products or byproducts where the State of California has authorized franchised solid waste haulers to provide said services.

Distance from Sensitive Receptors: Per §9-5.128(d)(12), a Commercial Cannabis Operation shall not be located within 930 feet, measured from property boundary to property boundary, of any existing school or proposed school site as identified in the General Plan. For purposes of this section, school means any public or private school providing instruction in kindergarten or grades 1-12, inclusive, but does not include any private school in which education is primarily conducted in private homes. The applicant meets this set-back requirement.

Public Notification: On April 15, 2021 public hearing notices were sent to all property owners within 300 feet of the site as required by Local and State law.

Environmental Review: The Community Development Director has determined that the proposed project supports a Planning Commission finding that it qualifies for a categorical exemption from the California Environmental Quality Act (CEQA). The project qualifies as a Class 32 exemption under CEQA Guidelines Section 15332, as described below, applies to the project:

15332.  In-Fill Development Projects

Class 32 consists of projects characterized as in-fill development meeting the conditions described in this section.

(a)  The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations.

(b)  The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.

(c)   The project site has no value as habitat for endangered, rare or threatened species.

(d)  Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

(e)  The site can be adequately served by all required utilities and public services.

In this case, the project involves an industrial infill development on a 2.6-acre vacant lot and meets all the criteria (a through e) outlined above. Therefore, the project is exempt from further analysis under CEQA.

Additionally, none of the exceptions to application of a categorical exemption in Section 15300.2 of the CEQA Guidelines apply, as described below.

• Sec. 15300.2(a): There is no evidence in the record that the project will impact an environmental resource of hazardous or critical concern in an area designated, precisely mapped, and officially adopted pursuant to law by federal, State, or local agencies. The project site is located within a substantially developed neighborhood and is not located in a sensitive environmental area. Therefore, it will not have a significant impact on the environment.

• Sec. 15300.2(b): There is no evidence in the record that successive projects of the same type in the area will have a significant environmental impact. The project is a small in-fill project within a substantially developed neighborhood and will not have a significant impact on the environment either alone or cumulatively with other projects in the vicinity.

• Sec. 15300.2(c): There is no evidence in the record of any possibility that the project will have a significant effect on the environment due to unusual circumstances. The project site is a vacant lot with very flat topography and no habitat value. It is zoned for industrial development and the project will involve in-fill industrial development consistent with the industrial zoning. Therefore, there are no unusual circumstances applicable to the project.

• Sec. 15300.2(d) through (f): The project is not proposed near a scenic highway, does not involve a current or former hazardous waste site, and, does not affect any historical resources. Therefore, the provisions of subsections (d) through (f) are not applicable to this project.

Because the project is consistent with the requirements for a Class 32 exemption and none of the exceptions to applying an exemption in Section 15300.2 apply; therefore, there is substantial evidence in the record to support a finding that the project is categorically exempt from CEQA.

Site Plan Findings for Approval

According to Section 9-6.404 of the Coalinga Municipal Code, the Planning Commission shall consider the following findings to approve a site plan:

1)      The proposed construction/alterations are in substantial conformance with the General Plan, zoning ordinance, and any applicable plans adopted by the city.

2)      The proposed construction/alterations conform to the requirements of the applicable Zoning Districts.

3)      The proposed construction/alteration conforms to all applicable design standards and guidelines, as adopted by the City Council.

4)      The construction/alteration will not have significant adverse effects on the public health, safety and welfare.

Conditional Use Permit finding of Approval

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.