Business Retention and Development Committee Agenda and Packet 2019 02 04

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SUBJECT: ORDINANCE 1769, SERIES 2019 — MARIJUANA ORDINANCE UPDATES DATE: JANUARY 8, 2019 PAGE 2 OF 15 • Allows medical marijuana manufacturing (including infused products) as a use by right in the I zone district, in addition to the current allowance in the C-B zone district. • Allows retail marijuana manufacturing (including infused products) in the I and C- B zone districts. Currently, the municipal code does not allow retail marijuana manufacturing in any zone district while allowing medical manufacturing in the C- B zone district. Allowing retail manufacturing in the I and C-B zone districts matches the current proposal for medical marijuana manufacturing. • Allows medical and retail marijuana cultivation as a use by right in the I zone district. Currently, the municipal codes prohibits cultivation in all zone districts. • Requires verification from an industrial hygienist that infused products manufacturing meets minimum health code requirements. • Requires ventilation systems for cultivation, manufacturing and testing so that no odors leave the premises (building). • Allows medical marijuana stores and testing in the Planning Community Zone District (PCZD) commercial and office areas, as long as mixed residential is not included on the same lot as the proposed marijuana business. Allowing medical sales matches the current allowance for retail marijuana businesses. BACKGROUND: The City adopted medical marijuana regulations in 2011 by Ordinance 1590-2011 and Ordinance 1591-2011 (see Attachment 2 for City Council Packet and Minutes) and retail marijuana regulations in 2013 by Ordinance 1649-2013 and Ordinance 1650-2013 (see Attachment 3 for City Council Packet and Minutes). The ordinances allowed certain marijuana businesses consistent with State Amendments 20 and 64, which legalized medical and retail marijuana businesses under State Law. In 2014, the City updated its code to prohibit marijuana clubs by Ordinance 1667-2014 (see Attachment 4 for City Council Packet and Minutes). The City's regulations limit size and location of each business type and allows medical sales, testing and production and retail sales in the C-B zone district and medical and retail testing as a special review use in several other office and business zone districts. The City does not currently allow cultivation in any zone district. The City has issued licenses for one retail business and one combined medical and retail business, both located at Colony Square shopping center, southwest of McCaslin Blvd. and Dillon Rd. An applicant recently submitted for a third retail license at 972 Dillon Road, which is currently under review. The City has not issued any licenses for manufacturing or testing facilities. CITY COUNCIL COMMUNICATION