Laserfiche WebLink
Ordinance Amendment No. 2018-02 — Allow Commercial Cannabis Cultivation, Manufacturing, <br />and Distribution Business Activities <br />April 17, 2018 <br />Page 2 <br />Indoor commercial cannabis cultivation is expected to take place in existing industrial buildings in <br />Santa Ana. Because of cheaper land values elsewhere in California, indoor cultivation is not <br />expected to occupy large amounts of square footage but is instead expected to take place as an <br />ancillary component of existing retailers or in a few standalone settings. This form of cultivation is <br />expected to satisfy local, niche markets, whereas large grow facilities elsewhere in California will <br />supply the majority of the state's market demands. <br />Manufacturing <br />Cannabis manufacturing, also known as processing, is the process by which cannabis plants are <br />transformed into usable products. Manufacturing takes place inside industrial buildings that are <br />rated/constructed for such uses and involves the use of high-tech equipment and employs highly - <br />skilled employees. As a supplement to the State's building codes, the Orange County Fire <br />Authority (OCFA) has developed construction and operational guidelines for cultivators to ensure <br />all life safety standards are met for any size and type of indoor cultivation facility. <br />Manufacturing activities are expected to thrive in Santa Ana due to the cannabis industry's <br />presence in the city since 2015 and because of Santa Ana's existing manufacturing sector. Local <br />suppliers are expected to satisfy the industry s equipment needs. Similar to cultivation, <br />manufacturing may also occur at retail sites as an ancillary component of existing retail <br />operations. <br />Manufacturing and processing activities are generally divided into two categories: non-volatile <br />and volatile. The Orange County Fire Authority (OCFA) has developed construction and <br />operational guidelines for manufacturers for both non-volatile and volatile facilities to ensure all <br />life safety standards are met for each type of process. Although initially found to be higher in risk, <br />volatile manufacturing, if occurring inside rated industrial buildings, is equally safe as similar <br />processes such as olive oil extraction and paint manufacturing. <br />Distribution <br />Cannabis distribution is the final component of the commercial cannabis supply chain and <br />involves the movement of cannabis between cultivators and distributors and distributors and <br />retailers. Distribution takes place inside commercial/industrial structures; the proposed ordinance <br />would allow distribution to take place in the City's Light and Heavy Industrial (M-1 & M-2) zoning <br />districts, where other commercial cannabis business activities are currently permitted. <br />Distribution is generally categorized into two sub -types: an ancillary activity to cultivation, <br />manufacturing, and retail operations that allows cannabis to be physically moved between one <br />operation to another, and a standalone activity that occurs inside distribution centers. <br />Commercial cannabis distribution is not the distribution of cannabis in the "retail" sense of the <br />term. As an ancillary component to cultivation, manufacturing, and retail operations, distribution is <br />a required activity and a critical component of the commercial cannabis supply chain. Santa Ana <br />75C-2 <br />