Item 35 - Ordinance Amendment No. 2022-01 - Commercial Cannabis Regulatory and Tax Updates

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Ordinance Amendment No. 2022-01 - Commercial Cannabis Regulatory and Tax Updates May 3, 2022 Page 10 2 5 0 8 Original State regulations did not specify exact zoning requirements but had set a default buffer of 600 feet from sensitive land uses such as schools, parks, or properties zoned for residential purposes. However, local agencies were permitted to reduce that buffer to zero through adoption of local ordinances. In 2021, the State revised its regulations to completely eliminate the default 600-foot buffer. Table 3 below illustrates how the proposed modification would increase the availability of industrial properties and buildings in cannabis eligible areas. Table 3: Analysis of Buffer Modification* Buffer Approx. Cannabis Eligible Building Square Footage Approx. Cannabis Eligible Zone Acreage Approx. Cannabis Eligible Number of Buildings 1,000 feet (current)41,695,434 957 762 600 feet (proposed)57,893,609 1,329 1,147 Difference +16,198,175 +372 +385 Approx. Change +18%+18%+34% *Analysis based on available GIS data in 2021 Consumption Lounges and Temporary Events State law was modified in 2019 to create a framework allowing cannabis consumption lounges and temporary (special) events with cannabis consumption. Cannabis consumption lounges are permitted to be opened and operated by businesses holding a retailer license. The proposed amendments would allow the City’s commercial cannabis retail businesses to submit applications to operate consumption lounges on the same site as and physically contiguous to a cannabis retailer. In addition, standards would be in place to allow up to a total of six temporary consumption special events per year in the City, with regulations paralleling those for consumption lounges to minimize community impacts. Several development and operating standards are included to ensure the health and safety of visitors to retailers and to minimize impacts onto surrounding properties. Among these, lounges will need to be designed so that a patron need not enter a consumption lounge in order to access a retail-only portion of the facility, and the lounges may only be accessible to those aged 21 or older. Lounges and special events may also offer food and non-alcoholic beverages, but the sale or consumption of alcohol or tobacco products will be prohibited. In addition, smoking cannabis will be prohibited in open-air areas, and consumption or smoking of cannabis products shall not be visible from any public place, public right-of- way, or area where minors may be present. If the consumption lounge or event contains an outdoor area, the outdoor area shall be oriented so as to eliminate visibility from any adjacent public place, public right-of-way, area where minors may be present, or adjacent business, tenant space, or building. As with all other commercial cannabis businesses,