Planning Commission Agenda and Packet 2011 02 10

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JANUARY 13, 2011 STAFF REPORT BACKGROUND: Planning Commission Staff Report February 10, 2011 Amendment 20 to the Colorado Constitution was approved by Colorado voters in 2000. The passage of the Amendment resulted in legalizing the "medical use of marijuana for persons suffering from debilitating medical conditions." Colo. Const. Art. XVIII, § 14. Amendment 20 created an exception to the state's criminal laws for any "patient" or "primary caregiver" in lawful possession of a registry identification card to engage or assist in the medical use of marijuana. Id. at § 14(2)(b). The law also permits physicians to authorize medical marijuana use for patients who have been diagnosed with debilitating medical conditions. Id. at § 14(2)(c). A patient is prohibited, however, from engaging in the medical use of marijuana in a way that endangers the health or well- being of any person or in the plain view of, or in a place open to, the general public. Id. at § 14(5)(a). The State did not establish complementary guidelines to regulate the medical marijuana industry until July, 2010. Previous City Action In July 2009, the City granted business license applications for two (2) medical marijuana dispensaries. At the time, neither the state nor the Louisville Municipal Code (LMC) provided guidance to regulating this new industry. The City classified the proposed uses as "medical clinics" and permitted them to locate in the Colony Square Shops, near McCaslin Boulevard and US 36. Colony Square is currently zoned Commercial Business (C -B). The C -B District is defined as a district comprised of areas to provide for a full range of retail sales and services including opportunities for a complete variety of comparative shoppers' goods. The C -B District allows the widest variety of Commercial /Retail land uses. "Medical clinics" are a use by right in the C -B zone district. In October 2009, the City adopted Ordinance #1557, Series 2009 which amended Title 17 of the LMC to add a definition of "medical marijuana dispensary" in Section 17.08.321 and to prohibit medical marijuana dispensaries as home occupations in Section 17.16.040. The City approved Ordinance #1561, Series 2009, and Ordinance #1574, Series 2010, establishing and subsequently extending a temporary moratorium on all medical marijuana operations in the City of Louisville until March 31, 2011. The moratorium and its extension were established to allow time for the City and State to develop more comprehensive regulations for the medical marijuana industry. State Guidelines House Bill (HB) 10 -1284, concerning the regulation of medical marijuana, was signed into law by the Governor in July 2010 and provides guidance on local governments' ability to regulate such operations. HB 10 -1284 outlines multiple options for local 4