Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/20/2010 - ITEMS RELATING TO MEDICAL MARIJUANA i DATE: April 20, 2010 M STAFF: Jerry Schiager, Ginny Sawyer Steve Dush, Peter Barnes, • ' • • Steve Roy, Linda Samuelson ffm Items Relating to Medical Marijuana. A. First Reading of Ordinance No. 045,2010,Amending the City's Land Use Code by Adding Medical Marijuana Cultivation Facilities as Permitted Uses in Various Zone Districts. B. First Reading of Ordinance No. 046, 2010, Amending Article XVI, Chapter 15 of the City Code Relating to Medical Marijuana. C. First Reading of Ordinance No. 047, 2010,Amending Ordinance No. 025, 2010, to Clarify the Application of Chapter 15, Article XVI of the City Code to Existing Medical Marijuana Businesses. EXECUTIVE SUMMARY These ordinances are being presented for Council's consideration in response to direction received on March 16, 2010,when the Council adopted two ordinances establishing a comprehensive set of regulations for medical marijuana businesses (MMBs). Ordinance No. 045, 2010,would amend the Land Use Code to allow medical marijuana cultivation sites to be located in additional zone districts besides the Industrial zone. Since three of these districts currently also allow medical marijuana dispensaries, adoption of this Ordinance would allow for the combination of dispensaries and cultivation sites on the same parcel of property in those districts. Ordinance No.046,2010,would amend the newly established MMB licensing regulations to accommodate combined dispensaries and cultivation facilities and to address other concerns expressed at the hearings that were held with regard to the licensing regulations and to respond to questions that have since been presented to staff by members of the industry. Ordinance No. 047, 2010, would amend the provisions of Ordinance No. 025, 2010 to clarify which businesses will be considered existing businesses that are eligible to immediately apply for a license and to authorize the issuance ofa non-provisional license to those businesses that meet the location requirements contained in the MMB regulations and the zone district standards. BACKGROUND/ DISCUSSION On March 16, 2010, the Council adopted two ordinances regulating medical marijuana businesses. The overall purpose of these ordinances is to acknowledge and protect the rights of patients and their primary caregivers under the provisions of Amendment 20 to the Colorado Constitution,while also protecting the health, safety and welfare of the public and curtailing, to the extent reasonably possible, the possession, use, distribution, or transportation of marijuana for unlawful purposes. The first ordinance (Ordinance No. 025, 2010)amended the City Code to add a new Article XVI which establishes a licensing system. The second (Ordinance No. 026, 2010) amended the Land Use Code to allow medical marijuana dispensaries in the C, CS, CCR, CCN, D, RDR, and CC zone districts, and to allow medical marijuana cultivation facilities in the Industrial zone. Proposed Amendments to the Land Use Code At the public hearing on these ordinances, several MMB owners stated that there is a lack of available building space in the I zone for cultivation sites. In response,the Council directed staff to explore the possibility of allowing cultivation April 20, 2010 -2- ITEM 19 sites in other areas of the City. After investigating that possibility, staff is proposing Ordinance No. 045, 2010 (the "LUC Ordinance"). Ordinance No.045,2010,would allow cultivation sites in the C-S,C-C-N and R-D-R zone districts,as well as the"non- Riverside" portion of the C-L district. The reason for this recommendation is that these zones currently allow for dispensaries and"light industrial"uses,and a cultivation site might legitimately be viewed as a similar kind of use. The LUC defines a "light industrial" use as follows: "Light industrial shall mean uses engaged in the manufacture, predominantly from previously prepared materials, of finished products or parts, including processing, fabrication, assembly, treatment,packaging,incidental storage,sales ordistribution of such products.Further,light industrial shall mean uses such as the manufacture of electronic instruments, preparation of food products, pharmaceutical manufacturing, research and scientific laboratories or the like. Light industrial shall not include uses such as mining and extracting industries, petrochemical industries, rubber refining, primary metal or related industries." As noted above,Ordinance No. 026, 2010, amended the LUC to.allow medical marijuana dispensaries in the C, C-S, C-C-R, C-C-N, D, R-D-R, and C-C zones. Therefore,with adoption of Ordinance No. 045,2010, it would be possible for MMB owners to combine a dispensary and a cultivation site on the same property in the C-S, C-C-N and R-D-R districts. This would alleviate the concern expressed by some MMB owners about the cost and inconvenience of having to establish and operate a cultivation site at a different location than the dispensary. Proposed Amendments to the Licensing Regulations Ordinance No.046,2010, is being presented in response to other concerns expressed at the public hearing on March 16. This Ordinance would amend the licensing regulations to achieve the following: • Section 15-452 would be amended to require all primary caregivers who would otherwise be exempt from the licensing requirements to obtain a license if they decide to join together with others in collectively operating a cultivation site. Staff believes that these collective sites present the same health and safety concerns as sites operated by an individual license holder. At a collective site, each patient or primary caregiver participating in the collective would be responsible for compliance with all licensing regulations as applied to his or her portion of the facility. • Section 15-465 would be amended in the following respects: • to allow dispensaries to cultivate only non-flowering plants(whether for cloning or sale)and to require that the cultivation of all other plants be conducted at the cultivation facility shown on the licensee's application; • to require that cultivation facilities that are operated in the same building as a dispensary be independently ventilated and secured so as to prevent entry to the cultivation facility by patients during all hours of operation of the dispensary; and • to require the City to keep confidential, to the extent permitted by law, the location of cultivation facilities. • Section 15-469 would be amended to increase -- from two ounces to four ounces within a seven day period of time--the amount of medical marijuana that can be purchased or sold by licensees. While staff continues to believe that sales to individual patients and primary caregivers should remain at two ounces per seven day period,as approved by the Council on March 16,the greater amount of four ounces is being recommended for sales between licensees in order to better allow for the disposition of excess quantities by licensees and to also allow licensees to obtain different strains of medical marijuana for particular patients. • Section 15-469 would be further amended to expand the categories of persons who can enter a dispensary to include minors accompanied by a parent or guardian who is a patient. April 20, 2010 -3- ITEM 19 Proposed Amendments to the Requirements and Procedures for Licensing Existing MMBs Ordinance No.047,2010,amends the provisions of Ordinance No.025,2010,which added the licensing requirement for MMBs to the City Code,also contains several sections that spell out the process for the licensing of existing MMBs. Under these sections,the only businesses that will be immediately eligible for licensing are those that obtained a sales and use tax license from the City on or before December 11, 2009, and that also commenced operation on or before March 26,2010. Existing businesses must apply for licensing no later than June 30,2010. If they fail to apply by that date,then they must immediately cease operation. If they apply for a license and the application is denied,they must cease operation within ten days afterthe date of denial of the application.Applicants whose applications are approved will be issued a provisional license until the City Council determines,after receiving a report and recommendation from the City Manager, whether they will be allowed to remain in their present locations. All applications must be in the same business name and owner's name as appear on any other license or permit previously issued by the City. In administering these provisions, staff has encountered two significant questions of interpretation: (1) When an applicant is a business entity rather than a natural person, what constitutes the "same owner's name"? This question is significant because, under the new licensing requirements, a license cannot be issued to an entity if any of the principals of, or financial interest holders in, the entity have been convicted of a felony criminal offense and have been released from court-ordered supervision within the ten year period immediately prior to the date of the application. Also,while a business that has changed principals may later be eligible to apply for an MMB license once Council has made the"grandfathering"decision,it should not be considered an"existing business"that may be entitled to possible grandfathering. Therefore, staff is recommending that a license application be considered to be in the same owner's name only if all of the persons listed on the application as having an ownership interest in an entity are identical to those listed on the previous license application filed with the City. (2) At what point should a business be considered to have"commenced operation"? This question is significant because some businesses that were issued a sales and use tax license on or before December 11,2009,have actually commenced operation by making sales. Others have made substantial investments in real or personal property and have begun cultivation but have not yet begun actually selling medical marijuana. Still others have taken no action to commence operation. Staff is recommending that a business be considered to have commenced operation on or before March 26, 2010, if it either began selling medical marijuana before that date, as shown on sales tax returns filed with the City, or if its owners had invested at least$5,000 before that date to purchase,lease or improve real property orto acquire personal property (other than medical marijuana) for the sole purpose of establishing or operating the business. Finally, staff is recommending that Ordinance No. 025, 2010, be amended to allow for the issuance of a non- provisional license to applicants whose business location meets all of the location requirements contained in Section 15-454 of the City Code and the zone district standards contained in the Land Use Code. There is no reason that the owners of these businesses should remain uncertain about the status of their license with the City even though they may still be uncertain about the legal status of their business under state or federal law. FINANCIAL IMPACT Staff does not anticipate any additional financial impacts as a result of these ordinances. SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS These ordinances could potentially minimize economic hardship to businesses that might otherwise need to relocate or set-up separate facilities. April 20, 2010 -4- ITEM 19 STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BOARD I COMMISSION RECOMMENDATION The Planning and Zoning Board considered Land Use Code changes related to MMBs at its April 15, 2010 meeting, and its recommendation will be provided to Council before the April 20 meeting. PUBLIC OUTREACH With the short turn around time on these ordinances, no formal public outreach was conducted. Staff has had numerous contacts and meetings with different businesses owners and shared these amendments in that context. Those owners were in favor of the land use changes and the increase from two to four ounces in sales between licensed dispensaries. ATTACHMENTS 1. Maps of Additional Land for Cultivation Sites: - Map 1A-Additional Land for Cultivation Sites with Proposed Zoning Changes, City-wide Map - Map 1 B -Additional Land for Cultivation Sites with Proposed Zoning Changes, Mulberry north - Map 1 C -Additional Land for Cultivation Sites with Proposed Zoning Changes, Mulberry to Horsetooth - Map 1 D -Additional Land for Cultivation Sites with Proposed Zoning Changes, Horsetooth south 2. Staff Report for the Planning and Zoning Board, April 15, 2010 3. Power Point presentation Medical Marijuana Map 1A Additional Land For Cultivation Sites With Proposed Zoning Changes Douglas:Rd 287 * MMDs in Residential ______, \ 'I Areas Not Shown 14 �® 14 cCN Mountain-Vista=DrCS (_- �__ I I i• 1 f —I CCN CL '— Vine:Dr� CCR C.CR IA A l ti LJ k r__— _ r---__ -hob, _ ccR c ' ^'I'• D RDR - —6Aulberry.St -_ -C I I I — P-rospeot-Rd CCR C — a rLn'Horsetooth=Rd -� IL Harmony-Rd r-_- � I I I - CS - -•L l� C CL _—- r'_—__— - Trilby=Rd -- �f J 1 — > �\ ------------ I MMD - Operational - 6 Meet Listed Requirements City Wide MMD - Operational 30 Do Not Meet Listed Requirements City Wide x MMD - Not Operational - 1 of 6 Meet Listed Requirements City Wide Zones that allow only a cultivation facility 1555 Acres City Wide I , CL (CL area along Riverside omitted ) 0 Zones that allow only MMDs - 1703 Acres City Wide C , CCR, CC , D " w E 0 Zones that allow both MMDs and - 518 Acres City Wide 5 cultivation facilities F,`rtCo ll ins CS , CCN , RDR GIS Printed: April 06, 2010 These map products and all underlying data are developed for use by the City of Fort Collins for Its internal purposes only, and were not designed or intended for general use by members of the public. The City makes no representation orwarranty as to its accuracy, timeliness, or completeness, and in particular, its accuracy in labeling or displaying dimensions, contours, property boundaries, or placement of location of any map features thereon. THE CITY OF FORT COLLINS MAKES NO WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE, EXPRESSED OR IMPLIED, WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA. Any users of these map products, map applications, or data, accepts same AS IS, WITH ALL FAULTS, and assumes all responsibility of the use thereof, and further covenants and agrees to hold the City harmless from and against all damage, loss, or liability arising from any use of this map product, in consideration of the City's having made this information available. Independent verification of all data contained herein should be obtained by any users of these products, or underlying data. The CRY disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which apses or may arise from these map products or the use thereof by any person or entity. Medical Marijuana Map 1B North of Mulberry - Additional Land For Cultivation Sites With Proposed Zoning Changes 14 --------------------- ,4 I I II I - I CCNLiEv :-- -- Mountain•Vista•Dr `--- ——1 CC I / I `CS ------------------ CCN J it P x i tr -----------_--__—_____IllaVineAr ______ __ ,� n nal — D, /- CCR - �____� .r A \a I I_i i —i CCR __ — RDR • � I • / --`— :— -------------- ---------�� .-------`--- J ] ' < — D• • CCR C / I • D RDD R\ � _.Mulberl _ -- -- CC C TF GCR --� �Cr / Zones that allow only a cultivation facility Zones that allow only MMDs Zones that allow both MMDs and I , CL (CL area along Riverside omitted ) C , CCR, CC , D cultivation facilities CS , CCN , RDR These map product and at undedlyrng data are developed Vase W me Ory m Fort colons for Us marmal lrrpases only,and ware nordesigned of Intended for general use by meadows dow public.The an departmentalmaybe departmentalor vermanly N CEt�y of as to h accuravf L compete and In parculart v in- labeling a peplarig dimensions contours, gopeM command, a placement of lateon of am amp features thereon.THE CITY OF FORT COLONS MANES NO ��JJ''II11IIppII11�� fI Collins�� WARRANTY OF MERCHANTMIIUTY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE EXPRESSED OR IMPLIED,WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA Any of these map W� ` �E GIS products, nap ppl ands dt acceptsAS IS, WITH ALL FAULTS, M II pa ible I medical and NMertwenant and disgust hold to Cty harMessho dou ml all dapmg loss, liability rising from ,1,I^^IVIVEE�s1I'' any use ofNe pproduct 4 T NN ctY raring a N monitored available l d m deli e�es�n of all concentrated haven should Leeds ned by any immortal ao] t , rundenvng data.Th ORnothing.and Printed A 06. 2010 shall limit beheld able foranv and alla rreg .less,or liability m wh direct indirect or nseguemaL wh[n anglesa mWartefiomgewinampro]uct I rce thereof April any oursnr rNN- P Medical Marijuana Map 1C Between Mulberry and Horsetooth - Additional Land For Cultivation Sites With Proposed Zoning Changes p RpDR CCR C �. ✓�' _ _.Mulberry_S1 _4 -- - cc _ �• • r CJ I I P-rospect.Rd C CCR I i % I 1 I m Drake=Rd y IIL-- �� • J � ' \ Do • `\ 1 C x \ 1 "o m w �Horsetooth=Rd \ --- I \ 6�w \ — \ Zones that allow only a cultivation facility Zones that allow only MMDs Zones that allow both MMDs and I , CL (CL area along Riverside omitted ) C , CCR, CC , D cultivation facilities CS , CCN , RDR These map product and at undenyrng deny are developed V use W me arym Fort colons for do normalgnpesa day,and wre a notdesigned of advancedFor general use oy members does public The an maybe an reprm'enla4ou or vaamaNy N City of II veto me accuravTrodden, comget and In paNculart v in- labeling ordepplayrg dimensions contours, gopeMcomman¢, m a placeenlN ¢al lon broad ampfeauianhereon.THE CITYOF FORT COLONS MANES NO ��JJ''II11IIppII11�� �„`For_t Collins WWW ARTYOF MERCHANTMIIUTYOR WARRANTY FOR FITNESS OF USE FOR PARTICULA WITH R PURPOSE OR IMPLIED, RESPECT TO THESE MAP PRODUCTS ORTHE UNDERLYING DATA Any ofthese map WE GIS product, nap engineering owmadar accepts sameAS IS, WITH ALL FAULTS,add assurnes all readvinsight, WNe usenermT and NMercoeenant and ourasm hold Na Cty generasho andagainst all dampare loss, dldy arising Rom ,1,h^(lulrEE�s1h' r anyuacode pproduct 4 T NN cty hating a N Informed J available e es des emaaen of all reprogrammed Latch should beverage by any mesodermal ao] t , runderlynga t ad ONd lain and Printed A 06. 2010 snau not beheld Table loran and ally Ireg .less,or T al whether erect indirect or nseguemaL wnch anses a mayar�fiomll�errepproduct orme ae marmmv any parvm " � P Medical Marijuana Map 1D South of Horsetooth = Additional Land For Cultivation Sites With Proposed Zoning Changes Horsetooth•Rd \ V I � � \ __——_—- __I k I ` I � C I�JLH;arrpnonl I II I I I \ — t I 1 j I P ^ l � CS I_- -_ `. \ I II I I •—___—_ —_ TrilbyNRd I --- LCL ---- - ly bar I o I J Jabal Zones that allow only a cultivation facility Zones that allow only MMDs F-1 Zones that allow both MMDs and I , CL C , CCR, CC , D cultivation facilities CS , CCN , RDR These map product and at undenyrng deny are developed V have W me pry UpFort urging for do marmal aapaa ray,and ware notdesigned or lntM for general use by members more pubis.The Gly maybe an reprm'enla4un or vaamaNy N City of II veto As accuravTrodden, comget and In paNculart v in- labeling emotional dimensions contours, corpse command, m a placeenlNl¢al m on proud ampfeauiCurtinnerern.THE CI FORT COLONS MANES NO ��JJ''II11IIppII11�� �„`For_t Collins WW WARTYOF MERCHANTASI PARTICULAR PURPOSE WARRANTY FOR FITNESS OF USE FOR PART PURPOSE, EXPRESSED OR IMPLIED,WITH RESPECT TO THESE MAP PRODUCTS ORTHE UNDERLYING DATA Any remove map WE GIS product, nap engineering owmadar accepts sameAS IS, WITH ALL FAULTS,add scandal all readvinsight, WNe usenermT and NMercoeenant and ourasto hold to Cty generasho andagainst all damparde loss, bldy arising Rom ,1,h^(�llrrEE,g1h' any use code mapp d C in considerationoftel gang meadethis Informed avaiI bl l d a dent corrosion of all dalaanramed heien should beverage by any userspnnae priddructs, r underlying data The ON dropping.and r Printed A 06. 2010 shall not beheld Table loran and allhappened Im whether or Tal wh erect indirect or nseguenlyL wnch poppy a mayar�fiomlleverrepproduct I use mermmv any arsm INN- � P ATTACHMENT 2 City of � MEETING DATE Fort Collins' STAFF _ r�7es K�cts PLANNING & ZONING BOARD PROJECT: Land Use Code text amendment to allow medical marijuana cultivation facilities in certain zones that currently allow light industrial uses. APPLICANT: City of Fort Collins PROJECT DESCRIPTION: This is a request for a Recommendation to City Council regarding a Land Use Code amendment intended to allow medical marijuana cultivation facilities as a permitted use in the CL (non-Riverside area), CCN, CS, and RDR zoning districts. RECOMMENDATION: Approval EXECUTIVE SUMMARY: At its meeting on February 18, 2010, the Fort Collins Planning and Zoning Board considered proposed Land Use Code amendments dealing with medical marijuana businesses. One of the amendments added medical marijuana cultivation facilities as a permitted use in the I — Industrial zoning district. This was the only district to which the use was proposed to be added. The Board recommended approval of this amendment to the City Council, and the Council approved this amendment on First Reading of Ordinance No. 26, 2010 at their March 2, 2010 meeting. On March 16, 2010, the City Council adopted Ordinance No. 26, 2010 on Second Reading, but requested that City staff prepare another ordinance that expands the zones in which cultivation facilities would be allowed. Council requested that the new ordinance be presented for consideration at their April 20, 2010 meeting. BACKGROUND: Staff and members of City Council have heard from numerous medical marijuana business owners that there is a lack of available building space for rent or purchase on properties in the I zone. Therefore, there is some concern that such businesses will not be able to find a sufficient number of locations for their cultivation facilities within the city limits. A medical marijuana cultivation facility closely resembles a "light industrial use", which is defined in the Land Use Code as "Light industrial shall mean uses engaged in the manufacture, predominantly from previously prepared materials, of finished products or parts, including processing, Current Planning 281 N College Av PO Box 580 Fort Collins, CO 80522-0580 fcgov.com/currentplanning 970.221.6750 LUC Amendment to Allow Medical Marijuana Cultivation in Certain Zones April 15, 2010 P & Z Hearing Page 2 fabrication, assembly, treatment, packaging, incidental storage, sales or distribution of such products. Further, light industrial shall mean uses such as the manufacture of electronic instruments, preparation of food products, pharmaceutical manufacturing, research and scientific laboratories or the like. Light industrial shall not include uses such as mining and extracting industries, petrochemical industries, rubber refining, primary metal or related industries." Ordinance No. 26, 2010, in addition to allowing cultivation facilities in the I zone; also allows for medical marijuana dispensaries to be located in the C, CS, CCR, CCN, D, RDR, and the CC zones. Light industrial uses are allowed in 3 of these 7 zones, the CS, CCN and RDR. In order to address City Council's desire to consider the possibility of allowing cultivation facilities in additional zones, staff recommends that the P&Z Board provide a recommendation to Council to add cultivation facilities as a permitted use in the three aforementioned zones that allow dispensaries and light industrial uses. Staff is also recommending that cultivation facilities be allowed.in the CL (non-Riverside area), which is another zone that currently allows light industrial uses. If the City Council approves the LUC amendment, cultivation facilities will then be allowed in the I — Industrial, CS —Service Commercial, CCN — Community Commercial North College, RDR — River Downtown Redevelopment, and CL (Limited Commercial, non-Riverside area) zoning districts. Additionally, the CS, CCN, and RDR districts would allow for BOTH dispensaries and grow facilities. The proposed changes are in keeping with the intent of the original ordinance while addressing the Council's desire to consider the allowance of cultivation facilities in additional zones. PROPOSED AMENDMENTS: Add medical marijuana cultivation facility t6the RDR, CCN, CS, and CL (non- Riverside areal zones. Problem Statement A medical marijuana cultivation facility is currently allowed only in the. I — Industrial zone. There is concern that there are not enough properties in this zone to accornmodate the demand created by the recent adoption of ordinances regulating medical marijuana businesses. LUC Amendment to Allow Medical Marijuana Cultivation in Certain Zones April 15, 2010 P &Z Hearing Page 3 Proposed Solution Staff recommends that the various sections of Article 4 be amended by adding a medical marijuana cultivation facility to the list of permitted Basic Development Review uses in the RDR, CCN, CS, and CL (non-Riverside area) as follows: Division 4.17 River Downtown Redevelopment District (R-D-R) (B)(1) (g) Industrial Uses: 1. Medical marijuana cultivation facility. Division 4.19 Community Commercial — North College District (C-C-N) (B)(1) (g) Industrial Uses: 1. Medical marijuana cultivation facility. Division 4.22 Service Commercial (C-S) (B)(1) (g) Industrial Uses: 1. Medical marijuana cultivation facility. LUC Amendment to Allow Medical Marijuana Cultivation in Certain Zones April 15, 2010 P &Z Hearing Page 4 Division 4.24 Limited Commercial (CL) That the table contained in Section 4.24(B)(2) of the LUC be amended to read as follows: (B)(2)(D) Land Use Riverside Area All Other Areas ' DUJ,Siq 7�0,1 N, T0A,'L� V Y- Medical marijuana cultivation facility Not Permitted BDR RECOMMENDATION: Staff recommends approval of the proposed Land Use Code Amendments ATTACHMENT 3 J,JJ 1fJJ !J �lffm�ej ir 21 � , 1 Recap On • Council passed two ordinances r - • • medical no marijuana businesses . additional Land Use Options . Council directed staff to bring back Or Dispensaries are currently allowed in D , RDR , CC , CCN , CCR , C , and CS zones . Cultivation facilities are currently allowed only in ( - Industrial zone . City tll-" 3 Proposed LUC Amendments (OrdinSM No . , 2010) Cultivation Options : Proposed ordinance would allow cultivation facilities in I , CS , CCN , RDR , and CL ( non - Riverside . ) Adds an additional 544 acres for cultivation . Foctryc �s 4 (Ordinancei fents • - Cultivation : Proposed ordinance would allow for dispensaries that are located in the CS , CC cultivation .and RDR zones to also have on -site Citycif FortiCollin Medical Marijuana Additional Land For Cultivation Sites With Proposed Zoning Changes � t Aeeas Not Shown y C p ti x� ,Y r ) 1 r i • MMD - Operational t, L"it I R!ea Ntpmemrilc cry wan • SIMD - Operational x. 17 , N✓ hl,_ ,t Ime Renuremeri CM WMe x MMD - Not Operational 1 .8 law late R••anienb City W.e .rily a cultivation facility - 1555 Acres Coy Wme ,.ung Riverside omitted) • • Zones that allow only MMDs • 1703 Acres City Wide — C , CCR. CC. D Zones that allow both MMDs and - 518 Acres City Wide 0 cultivation facilities 3 Medical Marijuana North of Mulberry - Additional Land For Cultivation Shea With Proposed Zoning Changes i J Zones that allow only a cultivation facility Zones that allow only MMDs Zones that allow both MMDs and I, CL (CL area along Riverside omitted) C, CCR, CC, D cultivation facilities CS. CCN, RDR Cityof JPr 7 Fort 7111in IF Medical Marijuana Between Mulberry and Horsetooth - Additional Land For Cultivation Siros Widf Proposed Zoning Changes L I a Zones that allow only a cultivation facility Zones that allow only MMDs F-I Zones that allow both WIN and I, CL (CL area along Riverside omitted) C, CCR, CC, D cultivation facilities CS, CCN, RDR Fort Collins City of Medical Marijuana South of Horsetooth - Additional Land For Cultivation Sites With Proposed Zonlno Cho nu Pf P IL t � I L Q Zones that anew unly a cultivation facility Zones that allow Only MMDs Zones that allow both MMDs and I, CL C, CCR, CC, D cultivation facilities CS. CCN, RDR Cityof • • Proposed Licensi IlJ � I1t E a hi ratherWould allow sales of 4 oz per 7 �day period between licensed dispensaries , . oz . Sales to patients and primary caregivers would still be limited to 2 oz . Fort Collins 10 City of e Clarifying Cultivation Cooperatives : Any individual patient and /or caregiver who would otherwise be exempt from licensing must be licensed if they grow collectively . 11 Process ENfIRAGairl Existing businesses that obtained tax license before December 11 , 2009 and "commenced operation " prior to March 26 , 2010 have until June 30 , 2010 to submit an MMB license application . Application must be in same business name and same owner' s name . `rthns 12 Process M ions (Ordinance No = 2010) • "Commenced operation " means either actual sales or expenditure of $5 , 000 or more to establish the business . • "Same owners" of an entity means the same principals as were listed on the application for the sales and use tax license . • Existing businesses will be issued a regular license rathe than a provisional license if they meet the new location and zoning requirements . tolls 13 Discussion & Qu ORDINANCE NO . 045 , 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CITY ' S LAND USE CODE BY ADDING MEDICAL MARIJUANA CULTIVATION FACILITIES AS PERMITTED USES IN VARIOUS ZONE DISTRICTS WHEREAS , on March 16, 2010, the City Council adopted Ordinance No . 025 , 2010, adding a new Article XVI to Chapter 15 of the City Code, which article establishes certain regulations governing the licensing, location and operation ofinedical marijuana businesses (the "Regulations") ; and WHEREAS , the Regulations require, among other things, that the cultivation activities of medical marijuana businesses be conducted primarily at cultivation facilities that are separate from the medical marijuana dispensaries and located in the Industrial zone districts of the City; and WHEREAS , on March 16, 2010, the City Council also adopted Ordinance No . 026, 2010, amending the City's Land Use Code to, among other things, add medical marijuana cultivation facilities as a permitted use in the Industrial zone district; and WHEREAS , industry representatives have indicated that there is a lack of available building space for rent or purchase for medical marijuana cultivation facilities in the Industrial zone districts of the City; and WHEREAS , in response to these concerns, the City Council has directed City staff to formulate recommendations as to additional zone districts where medical marijuana cultivation facilities might be located and to also consider the possibility of allowing, in certain areas of the City, medical marijuana dispensaries and cultivation facilities to be located on the same legal parcel and even in the same building; and WHEREAS , pursuant to this direction, City staff has recommended that cultivation facilities be allowed not only in the Industrial zone district, but also in the Service Commercial (C-S) zone district, Community Commercial - North College District (C-C-N) zone district, River Downtown Redevelopment District (R-D-R) zone district, and the "non-Riverside" portion of the Limited Commercial (C-L) zone district; and WHEREAS , because medical marijuana dispensaries are, under Ordinance No . 026, 2010, allowed in the C-S, C-C-N, and R-D-R zone districts , the proposed amendments to the Land Use Code would allow for the possibility of combining a dispensary and a cultivation facility on the same site, which would reduce the cost of establishing and operating such a business in the City; and WHEREAS , the City Council believes that making these zone districts available for medical marijuana cultivation sites is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 4 . 17(B)( 1 ) of the Land Use Code is hereby amended by the addition of a new subparagraph (g) which reads in its entirety as follows : (g) Industrial Uses : 1 . Medical marijuana cultivation facility. Section 2 . That Section 4 . 19(B)( 1 ) of the Land Use Code is hereby amended by the addition of a new subparagraph (g) which reads in its entirety as follows : (g) Industrial Uses : 1 . Medical marijuana cultivation facility. Section 3 . That Section 4.22(B)( 1 ) of the Land Use Code is hereby amended by the addition of a new subparagraph (g) which reads in its entirety as follows : (g) Industrial Uses : 1 . Medical marijuana cultivation facility. Section 4. That the table contained in Section 4 .24(B)(2)(D) of the Land Use Code is hereby amended to read as follows : D. INDUSTRIAL Riverside Area 411 Other Areas Medical marijuana cultivation facility Not Permitted BDR Introduced, considered favorably on first reading, and ordered published this 20th day of April, A.D . 2010, and to be presented for final passage on the 4th day of May, A.D . 2010 . Mayor ATTEST : City Clerk -2- Passed and adopted on final reading on the 4th day of May, A.D . 2010 . Mayor ATTEST : City Clerk -3 - ORDINANCE NO . 0461 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE XVI, CHAPTER 15 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO MEDICAL MARIJUANA WHEREAS , on March 16 , 2010, the City Council adopted Ordinance No . 025 , 2010, adding a new Article XVI to Chapter 15 of the City Code, which article establishes certain regulations governing the licensing, location and operation of medical marijuana businesses (the "Regulations"); and WHEREAS , the Regulations require, among other things , that the cultivation activities of medical marijuana businesses be conducted primarily at cultivation facilities that are separate from the medical marijuana dispensaries and located in the Industrial zone districts of the City; and WHEREAS , on March 16, 2010, the City Council also adopted Ordinance No . 026, 2010, amending the City's Land Use Code to, among other things, add medical marijuana cultivation facilities as a permitted use in the Industrial zone district; and WHEREAS , industry representatives have indicated that there is a lack of available building space for rent or purchase for medical marijuana cultivation facilities in the Industrial zone districts of the City; and WHEREAS , in response to these concerns, the City Council has directed City staff to formulate recommendations as to additional zone districts where medical marijuana cultivation facilities might be located and to also consider the possibility of allowing, in certain areas of the City, medical marijuana dispensaries and cultivation facilities to be located on the same legal parcel and even in the same building; and WHEREAS , pursuant to this direction, City staff has recommended that cultivation facilities be allowed not only in the Industrial zone district, but also in the additional zone districts specified in Ordinance No . , 2010, which has been approved by the City Council on first reading this same date ; and WHEREAS , because medical marijuana dispensaries are, under Ordinance No . 026, 2010, allowed in the C-S , C-C-N, and R-D-R zone districts, the proposed amendments to the Land Use Code would allow for the possibility of combining a dispensary and a cultivation facility on the same site, which would reduce the cost of establishing and operating such a business in the City; and WHEREAS , in order to accommodate the co-location of dispensaries and cultivation facilities on the same site, certain changes must be made to the recently enacted provisions of Chapter 15 , Article XVI of the City Code ; and WHEREAS , the Regulations exempt from the licensing requirements of Chapter 15 , Article XVII, primary caregivers who cultivate, possess or dispense medical marijuana for use by a single patient and patients who cultivate or possess medical marijuana for their own medical use; and WHEREAS , several such primary caregivers and patients have inquired of the City as to the need for a medical marijuana business license if they join together with other primary caregivers or patients to cultivate medical marijuana; and WHEREAS , City staff has recommended, and Council agrees, that these kinds of collective cultivation facilities should be regulated by the City, even if the primary caregivers and patients who operate such facilities would individually be exempt from licensing; and WHEREAS , the Regulations limit to two ounces the amount of medical marijuana that may lawfully be purchased by licensees from any source within any seven day period of time ; and WHEREAS , the purpose of this regulation is to help curtail the sale of marijuana for purposes other than medical use; and WHEREAS , City staff has concluded that this limitation may be more restrictive than necessary and has recommended to the City Council that the maximum quantity of medical marijuana that may be sold by licensees to other licensees be increased from two ounces to four ounces within a seven day period of time ; and WHEREAS , City staff has also recommended some other minor changes to the Regulations . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 15 -452 of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 15-452. License required ; exemption. (a) Except as provided in Subsection (b) of this Section, it shall be unlawful for any person to establish or operate a medical marijuana business in the City without first having obtained a license for such business from the City Manager. Such license shall be kept current at all times, and the failure to maintain a current license shall constitute a violation of this Section. (b) Except as provided in Subsection (c) of this Section, Eprimary caregivers who cultivate, possess or dispense medical marijuana tefor use by a single patient and patients who cultivate or possess medical marijuana for their own medical use, are exempt from the licensing requirements of this Article, but Abe are subject to the following limitations : ( 1 ) All such cultivation shall be conducted entirely within a building or other fully enclosed structure . (2) Not more than twelve ( 12) marijuana plants may be cultivated or kept at any dwelling unit, of which no more than six (6) plants may be mature . -2- (3 ) In no event shall a patient or primary caregiver keep, cultivate, grow or process more medical marijuana than such person is entitled to possess under Amendment 20 . (c) Any primary caregiver or patient who would otherwise be exempt from the licensing requirements of this Article under Subsection (b) of this Section and who joins together with one ( 1 ) or more other primary caregivers or patients to establish, operate, manage or otherwise participate in the activities of a medical marijuana cultivation facility shall be subject to the licensing requirements of this Article . Accordingly, it shall be unlawful for any primary caregiver or patient to engage in such collective activity at a cultivation facility without first having obtained a license for a medical marijuana business as required under Subsection (a) of this Section. Section 2. That Section 15 -453 ( 11 ) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 15-453 . Requirements of application for license , payment of application fee ; denial of license. ( 11 ) a comprehensive business operation plan for the medical marijuana business which shall contain, without limitation, the following : Section 3 . That Section 15 -465 of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 15-465. Cultivation, growing and processing by licensees. The ettifivai..., > > display or storage of mar nana p! within a medical mar nana dispensary shall be limited to nonflowering plants tha and processing of mar tiana plants other than for cloning shall be conducted by the licensee only at the cultivation facility shown on the applicati (a) The cultivation, growing, processing, display or storage of marijuana plants within a medical marijuana dispensary shall be limited to nonflowering plants . (b) Except as permitted under Subsection (a) of this Section, the cultivation, growing, processing, display or storage of marijuana plants by a licensee shall be conducted only at the cultivation facility shown on the licensee ' s application. (c) Access to any cultivation facility that is located in the same building as a dispensary shall be secured so as to render the cultivation facility inaccessible to patients during all hours of operation ofthe dispensary. All such cultivation facilities -3 - shall be independently ventilated so as to prevent odors, debris and dust from entering the dispensary. (d) To the extent permitted by law, the City shall keep confidential the location of all cultivation facilities . Section 4. That Section 15 -469 of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 15-469. Prohibited acts. It shall be unlawful for any licensee to : ( 1 ) employ any person to manage a medical marijuana dispensary or cultivation facility or to dispense medical marijuana who is not a patient or primary caregiver at least twenty-one (21 ) years of age or who has a criminal history as described in Paragraph 15 -455 (a)(2); (2) sell, give, dispense or otherwise distribute medical marijuana to anyone other than a patient or primary caregiver; (3 ) sell, give, dispense, or otherwise distribute to any patient or primary caregiver who is not a licensee more than two (2) ounces of any usable form of medical marijuana within any seven-day period of time; (4) purchase or otherwise obtain from any source other than another licensee more than two (2) ounces of medical marijuana in any usable form within any seven-day period of time ; (5 ) sell to, or purchase from, another licensee more than four (4) ounces of medical marijuana in any form within any seven-day period of time. (56) permit on the licensed premises any person other than: a. the licensee, the licensee's manager, employees and financial interest holders, b. a patient in possession of a registry identification card or its functional equivalent under Section 14(3 )(d) of Amendment 20 , c , a minor patient accompanied by a parent or lawful guardian in possession of the minor patient's registry identification card, d, a minor accompanied by a parent or guardian who is a patient, de . a primary caregiver in possession of his or her patient's registry identification card or its functional equivalent under -4- Section 14(3 )(d) of Amendment 20 and the patient's written designation of said person as the patient's primary caregiver, as submitted to the Colorado Department of Public Health and Environment, ef. a person whose physical presence and assistance are necessary to assist a patient, €g. a person who is actively engaged in the maintenance, repair or improvement of the licensed premises or in the provision of accounting or other professional services directly related to the conduct of the licensee's medical marijuana business, or gh. law enforcement officers , inspectors and other officials or employees of any federal, state or local government or agency engaged in the lawful performance of their official duties ; (6) dispense medical marijuana in or upon its cultivation facility; (7) permit the sale or consumption of alcohol beverages on the licensed premises ; or (8) post or allow to be posted signs or other advertising materials identifying cultivation facilities as being associated with the use or cultivation of marijuana. Introduced, considered favorably on first reading, and ordered published this 20th day of April, A . D . 2010, and to be presented for final passage on the 4th day of May, A.D . 2010. Mayor ATTEST : City Clerk -5 - Passed and adopted on final reading on the 4th day of May, A.D . 2010 . Mayor ATTEST : City Clerk -6- ORDINANCE NO . 0471 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ORDINANCE NO . 025 , 20109 TO CLARIFY THE APPLICATION OF CHAPTER 15 , ARTICLE XVI OF THE CITY CODE TO EXISTING MEDICAL MARIJUANA BUSINESSES WHEREAS , on March 16, 2010, the City Council adopted on second reading Ordinance No. 0251 2010, (the "Ordinance"), which added Article XVI to Chapter 15 of the City Code to govern the licensing, location and operation of medical marijuana businesses ("MMBs"); and WHEREAS , Section 3 of the Ordinance states that, until such date, if any, that is established by the City Council, no application for approval of a MMB shall be accepted by the City except applications for the licensing of an existing MMB ; and WHEREAS , said Section 3 defines an "existing MMB" as one that, on or before December 11 , 2009, was issued a sales and use tax license by the City and that, on or before the effective date of the Ordinance, had actually "commenced operation"; and WHEREAS , Section 4 of the Ordinance states, in effect, that the owner or operator of any existing MMB who wishes to continue to operate in the City must, on or before June 30, 2010, submit an application for a MMB license under the provisions of Section 15 -453 of the City Code and that such application must be in "the same business name and owner' s name" as appear on any other license or permit previously issued to such business by the City; and WHEREAS , in administering the provisions of said Sections 3 and 4, City staff has encountered questions of interpretation that the City Council wishes to address ; and WHEREAS, Section 7 ofthe Ordinance states that all existing businesses whose applications for a MMB license are approved by the City shall be issued a one-year provisional license pending a determination by the City Council as to whether such businesses will be allowed to remain in their current locations ; and WHEREAS , existing businesses whose location meets the location requirements contained in Section 15 -454 and the zone district standards contained in Article IV of the Land Use Code should instead be issued a non-provisional license; and WHEREAS , for the foregoing reasons, the City Council believes it to be in the best interests of the City to amend Sections 3 , 4 and 7 of the Ordinance . NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Sections 3 , 4 and 7 of Ordinance No. 025 , 2010, are hereby amended to read as follows : Section 3 . That, until such date, if any, that is established by the City Council pursuant to the provisions of Section 9(b) below, no application for approval of a medical marijuana business license shall be accepted by the City except applications for the licensing of an existing medical marijuana business . For the purposes of this Ordinance, an "existing medical marijuana business" shall mean a medical marijuana business that: (a) on or before December 11 , 2009 , was issued a sales and use tax license by the City and that on or before the effective date of this Ordinance, had actually cotmnenced ; (b) has maintained such license in good standing by complying with all relevant provisions of Chapter 25 , Divisions 2 and 3 of the City Code ; and (c) on or before March 26 , 2010, has either commenced the sale of medical marijuana, as evidenced by sales tax returns submitted to the City under Section 25 - 123 (c) of the City Code, or has expended at least Five Thousand Dollars ($ 5 ,000 . 00), as evidenced by documentation satisfactory in form to the City Manager, for the purchase, lease, or improvement of real property or for the acquisition of personal property, other than medical marijuana, to be used solely for the purpose of establishing or operating the medical marijuana business for which the sales and use tax license was issued by the City. Section 4. That any owner or operator of an existing medical marijuana business shall, on or before June 30, 2010, submit an application for a license under the provisions of Section 15 -453 of the City Code as enacted by the adoption of this Ordinance, whether or not such owner or operator has previously obtained any other license or permit related to such business . Said application shall be submitted to the City in the same business name and owner' s name as appear on any other license or permit previously issued to such businesses by the City. For the purposes of this provision, an application shall, in the case of an entity, be considered to be in the same owner' s name only if all of the principals listed on the application as having an ownership interest in the entity are identical to the principals listed on the application for the previously issued sales and use tax license . If such application is for a location different than the present location of the medical marijuana business, such location must be consistent with the location requirements contained in Section 15 -454 of the City Code, as enacted by the adoption of this Ordinance, and consistent with the zoning requirements contained in Ordinance No . 026, 2010 . If such application is approved by the City, the establishment of the medical marijuana business at such new location shall be subject to all relevant provisions and requirements of the Land Use Code . Section 7 . That any existing medical marijuana business whose application for licensing is timely filed under Section 4 above and is approved by the City sha-H be issued a one-year provisiona license pursuant to the provisions of Sections 15 -453 through 15 -457 of the City Code and shall, upon issuance of the license, be subject to all of the provisions of Chapter 15 , Article XVI of the City Code as cnacted by-the except,adoption of this Ordinance, provided, however, that: (a) any such applicant whose business location does not meet the location requirements contained in Section 15 -454 and of the City Code or the zone district standards contained in Article IV of the Land Use Code shall instead be issued a one- -2- year provisional license ending further action by the City Council by ordinance as provided in subsection (b) below; and (b) applicants for the issnance of snch ficenseswho are issued a provisional license under subsection (a) of this Section 7 shall not be required to pay the annual license fee required under Section 15 -467 as enacted by the adoption of this Ordinance, until such time, if at all, that the City Council confirms by ordinance, after receiving the report and recommendation of the City Manager as required in Section 8 below, that the existing medical marijuana business for which a particular provisional license has been issued shall be permitted to remain in operation in its current location. All existing medical marijuana businesses approved by the City Council in their present locations shall then be issued a non-provisional license for the remainder of the term of the provisional license, upon payment of the annual license fee . Section 4 . That all other provisions of Ordinance 025 , 2010, are to remain in full force and effect. Introduced, considered favorably on first reading, and ordered published this 20th day of April, A.D . 2010, and to be presented for final passage on the 4th day of May, A.D . 2010 . Mayor ATTEST : City Clerk Passed and adopted on final reading on the 4th day of May, A.D . 2010 . Mayor ATTEST : City Clerk -3 -