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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/04/2010 - ITEMS RELATING TO MEDICAL MARIJUANA DATE: May 4, 2010 L, I SUMMARY STAFF: Jerry Schiager, Ginny Sawyer, Steve AGENDA ITEM Dush, Peter Barnes, Steve Roy, Linda F FORTCOLLINS • Samuelson AM Items Relating to Medical Marijuana. A. Second 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. (Option 1 or Option 2) B. Second Reading of Ordinance No. 046, 2010, Amending Article XVI, Chapter 15 of the City Code Relating to Medical Marijuana. C. Second 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 Ordinance No. 045, 2010, adopted on First Reading on April 20, 2010 by a vote of 6-1 (nays: Troxell), amends the Land Use Code to allow additional zones for marijuana cultivation facilities. Ordinance No.046,2010,adopted on First Reading on April 20, 2010 by a vote of 6-1 (nays: Troxell), amends Article XVI, Chapter 15 of the City Code to allow for the co-location of dispensaries and cultivation facilities in certain zones, to allow medical marijuana businesses (MMBs) to acquire 4 ounces of medical marijuana per 7-day period from other licensed MMBs, and to regulate collective growing by persons otherwise exempt from licensing. Ordinance No. 047,2010, adopted on First Reading on April 20, 2010 by a vote of 7-0, amends Article XVI, Chapter 15 of the City Code to clarify existing businesses and to authorize the issuance of a non-provisional license to businesses that meet all requirements. BACKGROUND / DISCUSSION Following the adoption of Ordinance No. 025,2010, regulating medical marijuana businesses,staff continued to work in response to Council direction and public input to consider additional zoning options for cultivation facilities, to address operational changes, and to clarify existing businesses for the upcoming licensing process. On Second Reading,staff is providing,at Council's request,additional information regarding allowing cultivation in the E-Employment zone. The scenarios evaluated included:(1)only E zone within 700 feet of Airway Avenue(the Airpark Village hangers); (2) all E zone north of Mulberry; and (3)all E zone citywide. The inclusion of the E zone is shown on the attached maps(Attachment 1A-1 D).Also, the scenario where cultivation could occur in the E zone, but only within 700 feet of Airway Avenue, is included as a second option ordinance for consideration. However, staff is not recommending approval of expanding cultivation in any E zoned property. The Planning and Zoning Board discussed the E zone option at its March 15,2010 meeting and did not recommend adding the 700 foot option. The purpose of the Employment District is to provide high levels of basic primary jobs in a campus business park setting reflecting quality, attractive design compatible with and in close proximity to supporting residential neighborhoods. Simply stated, adding cultivation to the E zone does not meet the purpose of the district and may prevent the intended uses from being established and supported. Staff has provided the following City Plan Policies that support the recommendation to not allow cultivation in the E zone. City Plan Employment Policies: l • Principle ED-1: Employment Districts will be major employment centers in the community, with a variety of complementary uses to meet the needs of employees. Their attractive appearance should allow them to locate adjacent to residential neighborhoods and along primary entryways. May 4, 2010 -2- ITEM 25 • Policy ED-1.6 District Design. Developments will form a coherent, attractive business park setting. The organizing element of a District will either be a clear, unifying network of streets and sidewalks, or a system of campus-like outdoor spaces with connecting walkway spines. • Policy ED-1.8 Site Design. The design character of employment facilities should be reflective of a business park or campus setting, compatible with adjoining uses, with full landscaping of parking, perimeter and building edges to buffer the impacts of large facilities. Recreation, parks and open space areas should be incorporated into the design, as well as pedestrian linkages to City trails. Staff finds that permitting cultivation in the E zone is contrary to the purpose of the district and to stated City Plan policies. In 2005, City Council approved the initial annexation and Employment zoning of the Airpark Village property based on a request by the applicant. The request for zoning of Employment required a plan amendment of both the City Structure Plan map and East Mulberry Corridor Plan, which showed an Industrial land use designation. At that time, staff supported this amendment based on the proposed project conceptual plan by the applicant for a major employment project. An Overall Development Plan(ODP)for the concept was approved and,to date,the project has not materialized. A rezoning of the Airpark Village property from Employment back to Industrial zoning is an option and would require an amendment of the City Structure Plan and East Mulberry Corridor Plan maps, as well as an amendment to the approved ODP. This option is more preferable,although not necessarily supported by staff without further evaluation. The purpose of Industrial Districts is to provide a location for a variety of work processes such as manufacturing, machine shops,warehouses,distribution,outdoor storage yards,and other uses of similar character. Because of the types of uses and the community need for lower cost economic opportunities,the design features are not as extensive as Employment Districts. Therefore, Industrial Districts will be located away from, or adequately buffered from, residential neighborhoods. City Plan Policies for Industrial District: • PRINCIPLE ID-1: Industrial Districts will provide places for a wide range of industrial and commercial uses that do not need or are not suited to high public visibility. • Policy ID-1.4 Design Character and Image. Buildings and site improvements in Industrial Districts may be simple, practical, and more vehicle-oriented than in other districts and may lack a uniform design theme or character. Development standards should allow for metal buildings, tilt-up buildings, and similar large-span construction,and aprons of pavement for work and storage. Parking lots and outside storage will be screened from streets and other public spaces with fencing and/or landscaping. Outdoor spaces and amenities for pedestrians may be relatively simple, to meet the practical needs of workers. Staff has made changes to Ordinance No. 046 and Ordinance No. 047, 2010 as follows: • In Ordinance No. 046, 2010, Sec. 15-469 Prohibited Acts, has been expanded to include legal sales or distribution to other licensees or licensed MMBs within the State and to clarify the intention to allow 4 ounces of sales within a 7-day period between licensed MMBs. • In Ordinance No. 047, 2010, Section 3, wording has been added that would expand the$5000 expenditure of an existing business to include a commitment of that amount in the form of a contract such as a lease. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. Staff does not recommend the addition of the Employment zone for cultivation facilities. May 4, 2010 -3- ITEM 25 ATTACHMENTS 1. Maps showing the addition of the Employment Zone for Cultivation Facilities: - Map1A-E-zone, citywide - Map 1 B-E-zone, Mulberry north (including 700 ft within Airway Avenue) - Map 1C-E-zone, Mulberry to Horsetooth - Map 1 D-E-zone, Horsetooth south 2. Copy of First Reading Agenda Item Summary-April 20, 2010 (w/o attachments) 3. Ordinance No. 025, 2010, adopted on Marcy 16, 2010 4. Ordinance No. 026, 2010, adopted on March 16, 2010 5. Planning and Zoning Board minutes, April 15, 2010 6. Powerpoint presentation Medical Marijuana Map 1A Additional Land For Cultivation Sites With Proposed Zoning Changes p t _ Douglas:Rd 287 * MMDs in Residential Areas Not Shown 14 14 - - cCN IIIIIIIIIrMountain--I CS J CCN i✓ �I -E\ CCR Vine6Dr� J �i f / C B RDR CCR -- ----- CCR E ^'I'• D RDR Cr�� ♦ �yl� - —Mulberry-StCl -- E 11 Prospect:Rd F E E Y > E Drake:RdE �� ' 1 ~ E I (^� \v x a m C \ \ Horsetooth•Rd - \ I I \ E \ E ------ Harmony-Rd r-_- � I I I - CS - - � l� C CL _—- r'_—__— `_I Trilby=Rd -- I - c9 L C 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 _ _ _t 700 feet from Airway Ave 0 E zoned areas - 1979 Acres City Wide 0 Zones that allow only a cultivation facility - 155b Hcriws City Wide I , CL (CL area along Riverside omitted ) 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 F ftyofort Collins cultivation facilities Gla CS , CCN , RDR Printed: April 26, 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 areas 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 IF 14 --------------------- ,4 I I I LLCON -- Mountain- Cr E I � CSC j I J / CCN „\ �- -- CCR r __ —_% Vine•D - J \,L _ ----—_ cc v' E i F —i CCR .� _—- _—-�V 'p, % RDR Is E �. ----_.I __`— — — --- ` ----- --- ---- �.------- --- % ------- CCR 1 C A • ♦ / ♦ � DR ♦ _.Mbdiop i y_St _ -- -- cc C SCRv. 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Idpeodm contortion of all dalacogramd haven should mooned by any usersonhae ao] t , runderlyngat The Ctyd Ialna.and Printed April 06. 2010 anau mh be held toot moat and ana nag ,Ims,or liability wn m Oren, wren,or aaegrenfaL u'h=n angeaamlar�rmmmegemapprmrct rrtna as maermy any rergna Imrv- P ATTACHMENT 2 DATE: April 20, 2010 SUMMARY STAFF: Jerry Schiager, Ginny Sawyer AGENDA ITEM Steve Dush, Peter Barnes, F FORTCOLLINS • Steve Roy, Linda Samuelson 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, 201.0 ending le XVI, Chapter 15 of the City Code Relating to Medical Marijuana. (( n �I �l I,� \�// C. First Reading of Ordinance No\.047;�20110\,AJ)ddinll" Ordinance 1NI(o. 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�tfiese districts currently also allow medical marijuana dispensaries, adoption of6is Ordinance would allow for the combination of dispensaries and cultivation sites on the same parcel of property in those/dist'ricts:�--// U U 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 of a non-provisional license to those businesses that meetthe location requirements contained in the MMB regulations and the zone district standards. P BACKGROUND/DISCUSSION C 0 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/-D7:R�DR, and--CC zone-districts;, and to allow medical marijuana cultivation facilities in the Industrial zone. /� ' Proposed Amendments to the Landode 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 man ufactu re-of-electron ic-instruments, preparation of food products, pharmaceutical manufacturing, research and scientific1. laboratones/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 jr(e'galatib�r s Goi&eVthe fllowing: • Section 15-452 would be(Lnded drequire alll Jr'Laim-aryVan�Vi�g/rswho would otherwise be exempt from the licensing requirements\to of ainiadicense if fhey decide o 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; ��\ it \\ I� • to require that cultivation facilities thatl are operated in�the same building as a dispensary be independentlyventilated and-secured soy is to prevent entry to the cultivation facility by patients during all hours of operatiorrofthe,dispen`ary.yand� • 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. �� � Cended �� 2xpa�'d \� //• Section 15-469 would be further a to , the lerategories of persons who can enter a dispensary to include minors-accompanied-6y 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 after the 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, sta(has e7ncountered�tvvO signif can Q4/ti ns of interpretation: (1) When an applicant is a busiriess.entit\rather-than` natural pe I Ion, 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 Ci con E hv`—e � men(2) At what point should a business besidered to "'comced 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 bed a that date to p`rchase,lease or improve real property or to acquire personal property (other than medical marijuana)-for,the sole purpos i oo fest blishiing, r operating the business. Finally, staff is recommending that�©rdinance(No. 025),)2010-be a m\\d/ed 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 standar`ds 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 IM1P,,TS These ordinances could potentially mini ecorio c.h d I'hip 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/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 (( t l I I DD V With the short turn around time on th e�ordinah s,n 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: �� n n i� <� - Map 1A-Additional Land for Cultivation Sites with Proposed Zoning Changes, City-wide Map - Map 1 B-Additional LanWfor Cultivation Sites with Proposed Zoning Changes, Mulberry north Map 1 C -Additional Larid,for Cultiva _iltion Sites with-Proposed�Zoning Changes, Mulberry to Horsetooth - Map 1 D-Additional Land.for_Caltivatibn.Sites wLth Proposed(Zoning Changes, Horsetooth south 2. Staff Report for the Planning and Zoning Board, April 15, 2010 3. Power Point presentation Corry D C .0 . P ATTACHMENT ORDINANCE NO. 025, 2010 OF THE CODE OF THE CITY OF FORT COLLINS ADDING AN ARTICLE TO CHAPTER 15 OF THE CITY CODE GOVERNING THE LICENSING, LOCATION AND OPERATION OF MEDICAL MARIJUANA BUSINESSES WHEREAS,on November 7,2000,the voters ofthe state of Colorado approved Amendment 20 to the Colorado Constitution, which created a limited exception from criminal liability under Colorado law for persons suffering from debilitating medical conditions who are in need of marijuana for medical purposes and who obtain and use medical marijuana under the circumstances specified in Amendment 20; and WHEREAS, the possession, use, sale, distribution or transportation of marijuana is still a violation of federal law and,when possessed,used, sold,distributed or transported for any purpose other than medical use, a violation of state law as well; and WHEREAS, accordingly, the possession, use, sale, distribution, and transportation of marijuana for medical use as contemplated by Amendment 20 should be closely monitored and regulated by the City; and WHEREAS,if not closely monitored and regulated,the manner in which medical marijuana is possessed, used and distributed may adversely affect the health, safety, and welfare of the residents of the City as well as the health, safety and welfare of the patients and primary caregivers whose possession and use of marijuana for medical purposes is permitted by Amendment 20; and WHEREAS,on December 1,2009,the City Council adopted Ordinance No. 128,2009,and, for the reasons stated therein,imposed a moratorium on the establishment of any medical marijuana dispensaries that had not theretofore been established in the City, so that the status quo could be maintained while proposed regulations governing the same were developed by City staff, and WHEREAS,City staffhas,pursuant to City Council direction,reviewed the issues,concerns and secondary effects that may be associated with the operation of medical marijuana dispensaries in the City and has presented proposed regulations pertaining to the same for the City Council's consideration; and WHEREAS, the City Council believes that medical marijuana dispensaries, if properly regulated, can provide a valuable service to persons that are suffering from debilitating medical conditions and such dispensaries and related facilities should therefore be allowed as a conditional use on certain properties in the City, subject to licensing requirements and other regulations; and WHEREAS, by adoption of this Ordinance, the City Council does not intend to authorize or make legal any act that is not permitted under federal or state law but rather to establish local regulations governing the possession and use of medical marijuana under Amendment 20; and- WHEREAS, the City Council has determined that, for the reasons set forth above and for the purpose of protecting the public health, safety and welfare of the residents and visitors of Fort Collins, it is in the best interests of the City to amend the City Code as provided herein. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the recitals contained in this Ordinance and in Ordinance No. 128, 2009, are hereby adopted and incorporated herein as findings of fact of the City Council. Section 2. That Chapter 15 of the Code of the City of Fort Collins is hereby amended by the addition of a new Article XVI which shall read in its entirety as follows: ARTICLE XVI. MEDICAL MARIJUANA Sec. 15-450. Purpose. (a) The provisions of this Article are intended to acknowledge and protect the rights of patients and their primary caregivers under the provisions of Article XVIII, Section 14 of 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 by: (1) requiring that medical marijuana businesses be operated in a manner that minimizes potential health and safety risks and mitigates the negative impacts that a medical marijuana dispensary might have on surrounding properties and persons; (2) regulating the conduct of persons owning, operating and using medical marijuana dispensaries and cultivation facilities in order to protect the public health, safety and welfare; and (3) regulating the location and operation ofinedical marijuana dispensaries and cultivation facilities. (b) By adoption of this Article, the City Council does not intend to authorize or make legal any act that is not permitted under federal or state law See. 15-451. Definitions. (a) The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this Section: Alcohol beverage shall have the meaning ascribed to such term in the Colorado Liquor Code. -2- Amendment 20 shall mean that certain voter initiated amendment to the Colorado Constitution adopted November 7, 2000, which added Section 14 of Article XVIII to the Colorado Constitution. Applicant shall mean any person or entity who has submitted an application for a license or renewal of a license issued pursuant to this Article. If the applicant is an entity and not a natural person, applicant shall include all persons who are the members, managers, officers and directors of such entity. Building Official shall mean the Building Code Official as defined in Chapter 5 of this Code. Cultivation shall mean the process by which a person grows a marijuana plant. Dwelling unit shall mean one(1)or more rooms and a single kitchen and at least one(1)bathroom,designed,occupied or intended for occupancy as separate quarters for the exclusive use of a single family for living, cooking and sanitary purposes, located in a single-family, two-family or multi-family dwelling or mixed-use building. Financial interest shall mean any ownership interest, including, without limitation, a membership, directorship or officership; or any creditor interest, whether or not such interest is evidenced by any written document. Good cause, for the purpose of denying, refusing to renew, suspending or revoking a license under this Article, shall mean: (1) the applicant has violated,does not meet,or has failed to comply with, any of the terms, requirements, conditions or provisions of this Article or with any applicable state or local law or regulation; (2) the applicant has failed to comply with any special terms or conditions of a license,including those terms and conditions that were established at the time of issuance of the license and those imposed as a result of disciplinary proceedings held subsequent to the date of issuance of the license; or (3) the medical marijuana dispensary or cultivation facility has been operated in a manner that adversely affects the public health,welfare or safety of the immediate neighborhood in which the dispensary or cultivation facility is located. Evidence to support such a finding can include,without limitation, a continuing pattern of disorderly conduct, a continuing pattern of drug- related criminal conduct within the premises of the medical marijuana dispensary or cultivation facility or in the immediate area surrounding such facility, a continuing pattern of criminal conduct directly related to or arising from the operation of the medical marijuana dispensary or -3- cultivation facility, or an ongoing nuisance condition emanating from or caused by the medical marijuana dispensary or cultivation facility. License shall mean a document issued by the City officially authorizing an applicant to operate a medical marijuana business pursuant to this Article. Licensee shall mean the person to whom a license has been issued pursuant to this Article. Licensed premises shall mean that portion of a property, building or other structure used for the purpose of cultivating,storing,processing,displaying for sale, selling or otherwise distributing medical marijuana or other products by a licensee. Medical marijuana shall mean marijuana or cannabis approved under state law to treat persons suffering from debilitating medical conditions as defined in Amendment 20 and other laws and regulations of the State, including, without limitation, cancer, glaucoma, human immunodeficiency virus, or chronic or debilitating diseases such as seizures, severe pain, severe nausea,persistent muscle spasms and epilepsy. Medical marijuana business shall mean any person acting alone or in concert with another person, whether for profit or not for profit, who cultivates, grows, harvests, processes, packages, transports, displays, sells, dispenses or otherwise distributes the stalks,stems,roots,seeds,leaves,buds or flowers of the plant(genus) cannabis, or any mixture or preparation thereof, for medical use as authorized by Amendment 20. Medical marijuana cultivation facility or cultivation facility shall mean a building, structure or premises used for the cultivation or storage of medical marijuana that is physically separate and off-site from any medical marijuana dispensary and that is designated as part of the premises of a medical marijuana dispensary licensed pursuant to this Article. Medical marijuana delivery business shall mean a medical marijuana business that delivers medical marijuana to a patient or primary caregiver at a location other than a licensed premises. Medical marijuana dispensary or dispensary shall mean a property or structure used to sell, distribute, transmit, give, dispense or otherwise provide marijuana in any manner to patients or primary caregivers pursuant to the authority contained in Amendment 20 and the implementing state statutes and administrative regulations. Medical marijuana paraphernalia or paraphernalia shall mean devices, contrivances, instruments and paraphernalia for inhaling or otherwise consuming medical marijuana, including,but not limited to, rolling papers,related tools, water pipes and vaporizers. -4- Minor patient shall mean a patient less than eighteen(18) years of age. Patient shall mean a person who has a debilitating medical condition as defined in Amendment 20. Person shall mean a natural person or business entity such as,without limitation, a corporation, association, firm,joint venture,estate,trust,business trust,syndicate, fiduciary, partnership or any group or combination thereof. Place of worship or religious assembly shall mean a building containing a hall, auditorium or other suitable room used for the purpose of conducting religious services or meetings of the occupants of such structure. Premises shall mean the entire parcel of property upon which a medical marijuana dispensary or cultivation facility is located. Primary caregiver shall mean a person, other than the patient and the patient's physician, who is eighteen (18) years of age or older and has significant responsibility for managing the well-being of a patient who has a debilitating medical condition. Registry identification card shall mean that document, issued by the Colorado Department of Public Health and Environment,which identifies.a patient authorized to engage in the medical use of marijuana and such patient's primary caregiver, if any has been designated. (b) In addition to the definitions provided in Subsection (a) of this Section, other terms used in this Article shall have the meaning ascribed to them in Amendment 20,and such definitions are hereby incorporated into this Article by this reference. 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) Primary caregivers who cultivate, possess or dispense medical marijuana to 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 shall be subject to the following limitations: -5- (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. (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. Sec. 15-453. Requirements of application for license; payment of application fee; denial of license. (a) A person seeking a license or renewal of a license issued pursuant to this Article shall submit an application to the City Manager on forms provided by the City. At the time of application, each applicant shall pay a nonrefundable application fee to defray the costs incurred by the City for background investigations and inspection of the proposed premises, as well as any other costs associated with the processing of the application. In addition, the applicant shall present for recording one(1) of the following forms of identification: (1) an identification card issued in accordance with Section 42-2-302, C.R.S.; (2) a valid state driver's license; (3) a valid driver's license containing a picture issued by another state; (4) a military identification card; (5) a valid passport; or (6) an alien registration card. The applicant shall also provide the following information on a form approved by, or acceptable to, the City, which information shall be required for the applicant, the proposed manager of the medical marijuana business, and all persons having a ten- percent or more financial interest in the medical marijuana business that is the subject of the application or, if the applicant is an entity, having a ten-percent or more financial interest in the entity: (1) name, address, date of birth; (2) a complete set of fingerprints; (3) an acknowledgment and consent that the City will conduct a background investigation, including a criminal history check, and that the City will be -6- entitled to full and complete disclosure of all financial records of the medical marijuana business, including records of deposit, withdrawals, balances and loans; (4) if the applicant is a business entity, information regarding the entity, including, without limitation, the name and address of the entity, its legal status,and proof of registration with,or a certificate of good standing from, the Colorado Secretary of State, as applicable; (5) the name and complete address of the proposed medical marijuana business,including the facilities to be used in furtherance of such business, whether or not such facilities are,or are planned to be,within the territorial limits of the City; (6) if the applicant is not the owner of the proposed licensed premises, a notarized statement from the owner of such property authorizing the use of the property for a medical marijuana dispensary or cultivation facility; (7) a copy of any deed reflecting the ownership of,or lease reflecting the right to possess, the proposed licensed premises; (8) evidence of a valid sales tax license for the business; (9) if the medical marijuana dispensary will be providing medical marijuana in edible form, evidence of any food establishment license or permit that may be required by the State; (10) a "to scale" diagram of the premises, showing, without limitation, a site plan, building layout, all entry ways and exits to the dispensary and cultivation facility,loading zones and all areas in which medical marijuana will be stored, grown or dispensed; (11) a comprehensive business,plan for the medical marijuana business which shall contain, without limitation, the following: a. a security plan meeting the requirements of§ 15-463, b. a description of all products to be sold, C. a signage plan that is in compliance with all applicable requirements of this Code and the Land Use Code, d. a plan for the disposal of medical marijuana and related byproducts to ensure that such disposal is in compliance with all applicable federal, state and local laws or regulations; and -7- (12) any additional information that the City Manager reasonably determines to be necessary in connection with the investigation and review of the application. (b) A license issued pursuant to this Article does not eliminate the need for the licensee to obtain other required permits or licenses related to the operation of the medical marijuana dispensary and cultivation facility,including,without limitation, any development approvals or building permits required by this Code and the Land Use Code. (c) Upon receipt of a completed application, the City Manager shall circulate the application to all affected service areas and departments of the City to determine whether the application is in full compliance with all applicable laws, rules and regulations. (d) The Building Official shall, prior to issuance of the license, perform an inspection of the proposed licensed premises, including, without limitation, the proposed cultivation facility, to determine compliance with any applicable requirements of this Article or other provisions of this Code or the Land Use Code. (e) The City Manager shall deny any application that does not meet the requirements of this Article. The City Manager shall also deny any application that contains any false, misleading or incomplete information. Denial of an application for a license shall not be subject to administrative review but only to review by a court of competent jurisdiction. Sec. 15454. Location criteria. (a) No medical marijuana dispensary shall,at the time it is established and first licensed by the City, be located within one thousand (1,000) feet of another dispensary. (b) No medical marijuana dispensary shall be allowed except in accordance with the following location requirements: (1) No medical marijuana dispensary shall,at the time it is established and first licensed by the City, be located: a. within one thousand (1,000) feet of any private or public preschool, elementary, secondary, vocational or trade school. b. within five hundred (500) feet o£ 1. any college or university; 2. any child care center; -8- 3. any place of worship or religious assembly; 4. any public or private park, pool, playground or recreational facility; 5. any juvenile or adult halfway house, correctional facility, or substance abuse rehabilitation or treatment center; or 6. the boundary of any RUL, UE, RF, RL, LMN, MMN, NCL, NCM,NCB or HMN residential zone district. C. upon any City property; or d. in a residential unit, except as permitted under Section 3.8.3 of the Land Use Code. (2) No medical marijuana business shall operate as an outdoor vendor as defined in §15-381 of this Chapter (c) The distances described above shall be computed by direct measurement in a straight line from the nearest property line of the land used for the purposes stated in Subsections (a) and(b) above to the nearest portion of the building or unit in which the medical marijuana dispensary or cultivation facility is located. Sec. 15-455. Persons prohibited as licensees. (a) No license shall be issued to,held by, or renewed by any of the following: (1) any natural person who is not a patient or primary caregiver, as evidenced by a registry identification card or its functional equivalent under Section 14(3)(d) of Amendment 20 and, in the case of a primary caregiver, his or her patient's written designation of the-applicant as the patient's primary caregiver, as submitted to the Colorado Department of Public Health and Environment; (2) any person who has been released within the ten (10) years immediately preceding the application from any form of incarceration or court-ordered supervision, including a deferred sentence, resulting from a conviction of any felony or any crime which under the laws of the State would be a felony, or any crime of which fraud or intent to defraud was an element, whether in this state or elsewhere; (3) any entity whose directors, shareholders,partners, or other persons having a financial interest in said entity have been convicted of any of the offenses set forth in Paragraph (2) above; -9- (4) any person under the age of twenty-one (21) years; (5) any person who has made a false,misleading or fraudulent statement on his or her application for a license; (6) any person who has not paid all applicable fees; (7) any person whose license for a medical marijuana business in another city, town, county or state has been revoked; (8) any peace officer as defined in Section 16-2.5-101, C.R.S., or family member of a peace officer; or (9) any applicant who already holds three (3) medical marijuana business licenses in the City. Sec. 15-456. Issuance of license; duration; renewal. (a) Upon issuance of a license,the City shall provide the licensee with one(1) original of such license for each dispensary or cultivation site to be operated by the licensee in the City. Each such copy shall show the name and address of the licensee, the type of facility or business for which it is issued, and the address of the facility at which it is to be displayed, if any, pursuant to Subsection 15-458(c). (b) Each license issued pursuant to this Article shall be valid for one (1) year from the date of issuance and may be renewed only as provided in this Article. All renewals of a license shall be for no more than one(1) year. An application for the renewal of an existing license shall be made to the City Manager not more than sixty (60) days and not less than thirty (30) days prior to the date of expiration of the license. No application for renewal shall be accepted by the City Manager prior to or after such date. The timely filing of a renewal application shall extend the current license until a decision is made on the renewal. Sec. 15-457. Annual license fee. Upon issuance of a license or any renewal of a license, the licensee shall pay to the City a fee in an amount determined by the City Manager to be sufficient to cover the annual cost of inspections conducted pursuant to § 15-475 of this Article by Police Services, or such other departments of the City as may be designated by the City Manager,for the purpose of determining compliance with the provisions of this Article and any other applicable state or local laws or regulations. Sec. 15-458. Use and display of license. (a) A license shall not be transferable to another person. -10- (b) Each license shall be limited to use at the premises specified in the application for such license. Any change in location shall require the filing of an application for, and issuance of, a new license under the provisions of §15-453 above. (c) Each license shall be continuously posted in a conspicuous location at the medical marijuana dispensary and at the cultivation facility. (d) Any person delivering medical marijuana in the City on behalf of a medical marijuana business shall have in his or her possession a true and accurate copy of the license held by said business and shall, upon request by,any member of Police Services or by any other duly authorized law enforcement officer,produce the same for inspection. Sec. 15-459. Management of licensed premises. Licensees who are natural persons shall either manage the licensed premises themselves or employ a separate and distinct manager on the premises and report the name of such manager to the City Manager. Licensees that are entities shall employ a manager on the premises and report the name of the manager to the City Manager. All managers must be natural persons who are patients or primary caregivers at least twenty-one (21) years of age. No manager shall be a person having a criminal history as described in Paragraph 15-455 (a)(2). Sec. 15-460. • Change in manager; change in financial interest. (a) Each licensee shall report any change in managers to the City Manager within thirty (30) days after the change. Such report shall include all information required for managers under § 15-453 of this Article. (b) Each licensee shall report in writing to the City Manager any transfer or change of financial interest in the license holder or in the medical marijuana business that is the subject of the license. Such report must be filed with the City Manager within thirty(30) days after any such transfer or change. A report shall be required for any transfer of the capital stock of a public corporation totaling more than ten- percent of the stock in any one (1) year, as well as any transfer of a controlling interest in the corporation whenever a sufficient number of shares have been transferred to effectuate the transfer of a controlling interest. No person having or acquiring a financial interest in the medical marijuana business that is the subject of a license shall be a person having a criminal history as described in Paragraph 15- 455(a)(2). Sec. 15-461. Hours of operation. Medical marijuana dispensaries maybe open forbusiness only between the hours of 8:00 a.m. and 8:00 p.m. -11- Sec. 15-462. Signage and advertising. All signage and advertising for a medical marijuana dispensary shall comply with all applicable provisions of this Code and the Land Use Code.In addition,no signage or advertising shall use the word "marijuana" or "cannabis," or any other word, phrase or symbol commonly understood to refer to marijuana unless such word, phrase or symbol is immediately preceded by the word "medical' in type and font that is at least as readily discernible as all other words, phrases or symbols. Such signage and advertising must clearly indicate that the products and services are offered only for medical marijuana patients and primary caregivers. Sec. 15-463. Security requirements. (a) Security measures at dispensaries and cultivation facilities shall include at a minimum the following: (1) security surveillance cameras installed to monitor all entrances,along with the interior and exterior of the premises, to discourage and facilitate the reporting of criminal acts and nuisance activities occurring at the premises; (2) robbery and burglary alarm systems which are professionally monitored and maintained in good working condition; (3) a locking safe permanently affixed to the premises that is suitable for storage of all medical marijuana and cash stored overnight on the licensed premises; (4) exterior lighting that illuminates the exterior walls of the licensed premises and complies with applicable provisions of this Code and Land Use Code; and (5) deadbolt locks on all exterior doors. (b) All security recordings shall be preserved for at least seventy-two (72) hours by the licensee and be made available to Police Services upon request for inspection. Sec. 15-464. Required notices. There shall be posted in a conspicuous location in each medical marijuana dispensary a legible sign containing warnings that: (1) the possession, use or distribution of marijuana is a violation of federal law; -12- (2) the possession, use or distribution of marijuana for nonmedical purposes is a violation of state law; (3) it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of, or impaired by, marijuana; and (4) no one under the age of eighteen (18) years is permitted on the premises except minor patients accompanied by a parent or legal guardian in possession of a state registry card for such minor patient. Sec. 15-465. Cultivation, growing and processing by licensees. The cultivation, growing, processing, display or storage of marijuana plants within a medical marijuana dispensary shall be limited to nonflowering plants that are kept by the licensee solely for the purpose of cloning. The cultivation, growing and processing of marijuana plants other than for cloning shall be conducted by the licensee only at the cultivation facility shown on the application. Sec. 15-466. Sale of edible products. (a) Medical marijuana dispensaries may not be co-located with facilities used to prepare,produce or assemble food,whether for medical or nonmedical purposes. (b) Any food products sold by a medical marijuana dispensary shall either be inspected by an agency of the Colorado Department of Public Health and Environment or, if no such inspection has occurred, shall contain a label indicating the lack of any such inspection. See. 15-467. Labeling. All marijuana sold or otherwise distributed by the licensee shall be packaged and labeled in a manner that advises the purchaser that the marijuana is intended for use solely by the patient to whom it is sold and that any resale or redistribution of the marijuana to any person other than a patient or primary caregiver is a criminal violation. , Sec. 15-468. On-site consumption of medical marijuana. The consumption, ingestion or inhalation of medical marijuana on or within the premises of a medical marijuana dispensary or cultivation facility is prohibited. These restrictions shall not apply to medicinal products such as tinctures. Sec. 15-469. Prohibited acts. It shall be unlawful for any licensee to: -13- (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 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 more than two (2)ounces of medical marijuana in any usable form within any seven-day period oftime; (5) 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 primary caregiver in possession of his or her patient's registry identification card or its functional equivalent under 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, (e) a person whose physical presence and assistance are necessary to assist a patient, (f) 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, r (g) 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; -14- (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. Sec. 15-470. Visibility of activities; control of emissions. (a) All activities of medical marijuana dispensaries and cultivation facilities, including, without limitation, cultivating, growing, processing, displaying, selling and storage, shall be conducted indoors. (b) No medical marijuana or paraphernalia shall be displayed or kept in a dispensary or cultivation facility so as to be visible from outside the licensed premises. (c) Sufficient measures and means of preventing smoke, odors, debris, dust, fluids and other substances from exiting a dispensary or cultivation facility must be provided at all times. In the event that any odors, debris, dust, fluids or other substances exit a medical marijuana dispensary or cultivation facility, the owner of the subject premises and the licensee shall be jointly and severally liable for such conditions and shall be responsible for immediate, full clean-up and correction of such condition. The licensee shall properly dispose of all such materials, items and other substances in a safe, sanitary and secure manner and in accordance with all applicable federal, state and local laws and regulations. Sec. 15-471. Disposal of marijuana byproducts. The disposal of medical marijuana, byproducts and paraphernalia shall be done in accordance with plans and procedures approved in advance by the City Manager. Sec. 15-472. Deliveries of medical marijuana. Deliveries of medical marijuana and paraphernalia by licensees operating a medical marijuana delivery business, whether or not such business is conducted in conjunction with a local dispensary or cultivation facility, shall be made only to patients and primary caregivers and only in the amounts specified in Paragraph 15- 469(3)above. All such deliveries shall be subject to the record keeping requirements contained in § 15-474 below. Sec. 15473. Sales tax. Each licensee shall collect and remit City sales tax on all medical marijuana, paraphernalia and other tangible personal property sold by the licensee at the medical marijuana dispensary. -15- Sec. 15-474. Required books and records. (a) Every licensee shall maintain an accurate and complete record of all medical marijuana purchased, sold or dispensed by the medical marijuana business in any usable form. Such record shall include the following: (1) the identity of the seller and purchaser involved in each transaction; (2) the total quantity of, and amount paid for, the medical marijuana; and (3) the date, time and location of each transaction. (b) Every patient or primary caregiver shall provide to the licensee, and the licensee shall record, the following information for such books and records: (1) the patient or primary caregiver's name, date of birth, and current street address, including city, state and zip code; (2) the form of identification that was presented by the patient or primary caregiver, which may include any of the following, and the identifying number, if any, from such form: a. an identification card issued in accordance with Section 42-2-302, C.R.S., b. a valid state driver's license, C. a valid driver's license containing a picture issued by another state, d. a military identification card, e. a valid passport, or f. an alien registration card; (3) a registry identification card or its functional equivalent under Section 14(3)(d)of Amendment 20 and,in the case of a primary caregiver,the date the primary caregiver was designated by the patient for whom the medical marijuana was purchased. (c) Information provided to the licensee by a patient or primary caregiver under the provisions of this Section need not include any information regarding the patient's physician or medical condition. (d) All transactions shall be kept in a numerical register in the order in which they occur. -16- (e) All records required to be kept under this Article must be kept in the English language in a legible manner and must be preserved and made available for inspection for a period of three (3) years after the date of the transaction. Information inspected by Police Services or other City departments pursuant to this Article shall be used for regulatory and law enforcement purposes only and shall not be a matter of public record. Sec. 15-475. Inspection of licensed premises. (a) During all business hours and other times of apparent activity, all licensed premises shall be subject to inspection by Police Services and all other City departments designated by the City Manager for the purpose of investigating and determining compliance with the provisions of this Article and any other applicable state and local laws or regulations. Said inspection may include, but need not 1'e limited to, the inspection of books, records and inventory. Where any part of the licensed premises consists of a locked area, such area shall be made available for inspection, without delay, upon request. (b) If a medical marijuana delivery business does not maintain a dispensary or cultivation facility within the territorial limits of the City, the licensee for such business shall, upon receipt of notification from the City, make available for inspection by the City all books and records of the medical marijuana business as required in said notice. For the purpose of this provision, notice of request for inspection shall be deemed received ten (10) days from the date of mailing of the notice to the licensee's address as shown on the license. Sec. 15-476. Nonrenewal, suspension or revocation of license. The City Manager may, after notice and hearing, suspend, revoke or refuse to renew a license for good cause. The City Manager is authorized to adopt rules and procedures governing the conduct of such hearings. Licensees requesting a hearing shall,at the time of filing the request,pay the City a fee in the amount of fifty dollars ($50.) to defray the cost of the hearing. Sec. 15-477. Violations and penalties. In addition to the possible denial, suspension, revocation or nonrenewal of a license under the provisions of this Article,any person, including,but not limited to, any licensee,manager or employee of a medical marijuana business,or any customer of such business, who violates any of the provisions of this Article, shall be guilty of a misdemeanor punishable in accordance with § 1-15 of this Code. Sec. 15-478. No City liability; indemnification. (a) By accepting a license issued pursuant to this Article, the licensee waives and releases the City, its officers, elected officials, employees, attorneys and agents -17- from any liability for injuries,damages or liabilities of any kind that result from any arrest or prosecution of dispensary owners, operators, employees, clients or customers for a violation of state or federal laws, rules or regulations. (b) By accepting a license issued pursuant to this Article, all licensees,jointly and severally if more than one, agree to indemnify, defend and hold harmless the City, its officers, elected officials, employees, attorneys, agents, insurers and self- insurance pool against all liability, claims and demands on account of any injury, loss, or damage, including, without limitation, claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage or any other loss of any kind whatsoever arising out of or are in any manner connected with the operation of the medical marijuana business that is the subject of the license. Sec. 15-479. Other laws remain applicable. (a) To the extent the State has adopted or adopts in the future any additional or stricter law or regulation governing the sale or distribution of medical marijuana, the additional or stricter regulation shall control the establishment or operation of any medical marijuana business in the City. Compliance with any applicable state law or regulation shall be deemed an additional requirement for issuance or denial of any license under this Article, and noncompliance with any applicable state law or regulation shall be grounds for revocation or suspension of any license issued hereunder. (b) Any licensee may be required to demonstrate, upon demand by the City Manager or by law enforcement officers, that the source and quantity of any marijuana found upon the licensed premises are in full compliance with any applicable state law or regulation. (c) If the State prohibits the sale or other distribution of marijuana through medical marijuana dispensaries, any license issued hereunder shall be deemed immediately revoked by operation of law,with no ground for appeal or other redress on behalf of the licensee. (d) The issuance of any license pursuant to this Article shall not be deemed to create an exception, defense or immunity to any person in regard to any potential criminal liability the person may have for the cultivation, possession, sale, distribution or use of marijuana. See. 15-480. Severability, If any section, sentence, clause, phrase, word or other provision of this Article is for any reason held to be unconstitutional or otherwise invalid, such holding shall not affect the validity of the remaining sections, sentences, clauses, phrases, words or other provisions of this Article or the validity of this Article as an entirety,it being -18- the legislative intent that this Article-shall stand, notwithstanding the invalidity of any section, sentence, clause, phrase, word or other provision. 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 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 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 commenced operation. 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 business by the City. If such application is for a location different than the present location of the medical marijuana business, said 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 5. Any person owning or operating an existing medical marijuana business in the City who fails to submit an application as required in Section 4 above, on or before June 30, 2010, shall, as of 12:00 a.m. on July 1, 2010, immediately cease operating said business until such time, if at all, that a new opportunity to submit an application for a license is made available by the City Council under Section 7 below and such license has been issued by the City. Section 6. That any person who submits an application for an existing medical marijuana business under Section 4 above and is denied the issuance of such license for any reason other than failure to meet a location requirement contained in Section 15-454 of the City Code, as enacted by the adoption of this Ordinance, or a zone district standard contained in the Land Use Code shall, immediately upon receipt of such notice of denial, cease operating said business. For the purpose of this provision,notice of denial shall be deemed to have been received ten(10)days from the date of mailing of the notice. 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 shall be issued a one-year provisional license and shall, upon issuance of the license, be subject to all of the provisions of Chapter 15,Article XVI of the City Code,as enacted by the adoption of this Ordinance,except that: (a) the location requirements contained in Section 15-454 and the zone district standards contained in Article IV of the Land Use Code shall not be applicable to such business pending further action by the City Council by ordinance; and -19- (b) applicants for issuance of such licenses shall not be required to pay the annual license fee required under Section 15-457 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 8. That,notwithstanding any other provision of this Ordinance to the contrary, any medical marijuana business for which a home occupation license has been issued by the City under Section 3.8.3 of the Land Use Code shall cease all medical marijuana cultivation activities at the premises for which such license was issued and shall remove from such premises all medical marijuana in any usable form on or before the date specified in Land Use Code Section 3.8.3(10)(h). Section 9. That the City Manager is hereby directed to present for the City Council's consideration, on or before September 1, 2010, recommendations as to the following: a. whether to make the above referenced location requirements applicable to existing medical marijuana businesses; and , b. when, if at all, the City should begin accepting applications for new medical marijuana businesses. . Section 10. The knowing failure to cease operation of an existing medical marijuana business in violation of Section 5 or 6 of this Ordinance shall constitute the commission of a misdemeanor criminal offense by the licensee and manager of the medical marijuana business, punishable as provided in Section 1-15 of the City Code: Section 11. That the moratorium imposed by Ordinance No. 128, 2009, shall expire as of the effective date of this Ordinance, and the provisions of Ordinance No. 128, 2009, shall thereafter be of no further force and effect. Introduced, considered favorably on first reading, and ordered published this 2nd day of March, A.D. 2010, and to be presented for final passage on the ay of March, A.D. 20 &16t .0 Mayor ATTEST: %U�A City Clerk -20- Passed and adopted on final reading on the 16th day of arc , A.D. 2010. Mayor ATTEST: U�k Y City Clerk -21- ATTACHMENT 4 ORDINANCE NO. 026, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING AMENDMENTS TO THE CITY LAND USE CODE RELATING TO MEDICAL MARIJUANA e WHEREAS, on March 18, 1997, by its adoption of Ordinance No. 051, 1997, the City Council enacted the Fort Collins Land Use Code (the "Land Use Code"); and WHEREAS, City staff and the Planning and'Zoning Board have reviewed the Land Use Code and identified and explored various issues pertaining to the distribution of medical marijuana in the City as they relate to the Land Use Code, and have made recommendations to the Council regarding such issues; and WHEREAS, the City Council has determined that the recommended Land Use Code amendments relating to medical marijuana dispensaries and related facilities are in the best interest of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Land Use Code is hereby amended as follows: Section 1. That Section 1.3.4(A) of the Land Use Code is hereby amended to read as follows: 1.3.4 Addition of Permitted Uses (A) Required Findings. In conjunction with an application for approval of an overall development plan, a project development plan, a final plan or any amendment of the foregoing, and upon the petition of the applicant or on the Director's own initiative, the Director (or the Planning and Zoning Board as specifically authorized in subparagraphs (6) and (7) below) may add to the uses specified in a particular zone district any other similar use which conforms to all of the following conditions: (1) Such use is appropriate in the zone district to which it is added; (2) Such use conforms to the basic characteristics of the zone district and the other permitted uses in the zone district to which it is added; (3) Such use does not create any more offensive noise, vibration, dust, heat, smoke, odor, glare or other objectionable influences or any more traffic hazards, traffic generation or attraction, adverse environmental impacts, adverse impacts on public or quasi-public facilities, utilities or services, adverse effect on public health, safety, morals or aesthetics, or other adverse impacts of development, than the amount normally resulting from the other permitted uses listed in the zone district to which it is added; 1 (4) Such use is compatible with the other listed permitted uses in the zone district to which it is added; (5) Such use is not a medical marijuana dispensary or a medical marijuana cultivation facility. (6) Such use is not specifically listed by name as a prohibited use in the zone district to which it is added, or if such use is prohibited, the proposed use is specific to the proposed site, is not considered for a text amendment under paragraph (B) below, and is specifically found by the Planning and Zoning Board to not be detrimental to the public good and to be in compliance with the requirements and criteria contained in Section 3.5.1; (7) Such use is not specifically listed as a 'Permitted Use" in Article 4 and the proposed use is specific to the proposed site, is not considered for a text amendment under paragraph (B) below, and is specifically found by the Planning and Zoning Board to not be detrimental to the public good and to be in compliance with the requirements and criteria contained in Section 3.5.1. (See Section 2.9 for the procedures for text amendments.) Section 2. That Section 3.8.3 (10) of the Land Use Code is hereby amended by the addition of a new subparagraph (h) which reads in its entirety as follows: (10) A home occupation shall not be interpreted to include the following: (h) medical marijuana businesses ("MMBs"), as defined in Section 15-451 of the City Code, except that those MMBs that were issued a home occupation license by the City prior to December 11, 2009, may continue to operate as an office use for two (2) years from the date of issuance of such license; provided that no medical marijuana in any form is kept on the premises of such business and there is no-cultivation of marijuana plants on such premises upon the expiration of ten (10) calendar days after the date that any of the following events occurs: (i) the owner of the MMB fails to apply, on or before June 30, 2010, for a MMB license as required by Section 15-452 of the City Code and Section 4 of Ordinance No. 025, 2010; (ii) such an application is timely filed and is denied by the City; or (iii) such an application is timely filed and a provisional MMB license is issued by the City pursuant to Section 7 of Ordinance No. 025, 2010. Section 3. That Section 3.8.3(11) of the Land Use Code is hereby amended to read as follows: 2 (11) A home occupation shall be permitted only after the owner or inhabitant of the dwelling in which such occupation is conducted has obtained a home occupation license from the city. The fee for such a license shall be the fee established in the Development Review Fee Schedule, and the term of such license shall be two (2) years. At the end of such term, the license may be issued again upon the submission and review of a new application and the payment of an additional fee. If the city is conducting an investigation of a violation of this Land Use Code with respect to the particular home occupation at the time such renewal application is made, the license will not be reissued until the investigation is completed, and if necessary, all violations have been corrected. The term of the previous license shall continue during the period of investigation. The Director may revoke any home occupation license issued by the City if the holder of such license is in violation of any of the provisions contained in subsections (1) through (8) or 10(h) of this Section, provided that the holder of the license shall be entitled to the administrative review of any such revocation under the provisions contained in Chapter 2, Article VI of the City Code. Section 4. That the table contained in Section 4.16(B)(2)(C) of the Land Use Code is hereby amended to read as follows: Land Use Old City Canyon Civic Center Center Avenue 7 i`3 .�3�a Y {„�n�t�:t++jat< f�l' Shp-��q��^u 4 r;,`t=,� ;,.tit• �h! i� ��wmri•!tr��t x�; i Medical marijuana dispensary BDR BDR BDR Section 5. That Section 4.17(B)(1) of the Land Use Code is hereby amended by the addition of a new subparagraph(f) which reads in its entirety as follows: (f) Commercial/Retail Uses: \ 1. Medical marijuana dispensary. Section 6. That Section 4.18(B)(1) of the Land Use Code is hereby amended by the addition of a new subparagraph(f) which reads in its entirety as follows: (f) Commercial/Retail Uses: 1. Medical marijuana dispensary. Section 7. That Section 4.19(B)(1) of the Land Use Code is hereby amended by the addition of a new subparagraph(f) which reads in its entirety as follows: 3 (f) Commercial/Retail Uses: 1. Medical marijuana dispensary. Section 8. That Section 4.20(B)(1) of the Land Use Code is hereby amended by the addition of a new subparagraph(0 which reads in its entirety as follows: (f) Commercial/Retail Uses: 1. Medical marijuana dispensary. Section 9. That Section 4.21(B)(1) of the Land Use Code is hereby amended by the addition of a new subparagraph(f) which reads in its entirety as follows: (f) Commercial/Retail Uses: 1. Medical marijuana dispensary. Section 10. That Section 4.22(B)(1) of the Land Use Code is hereby amended by the addition of a new subparagraph(0 which reads in its entirety as follows: (f) Commercial/Retail Uses: 1. Medical marijuana dispensary. Section 11. That Section 4.28(B)(1) of the Land Use Code is hereby amended by the addition of a new subparagraph (0 which reads in its entirety as follows: (f) Industrial uses: 1. Medical marijuana cultivation facility. Section 12. That Section 5.1.2 of the Land Use Code is hereby amended by the addition of the following new definitions which read in their entirety as follows: Medical marijuana cultivation facility or cultivation facility shall mean a . building, structure or premises used for the cultivation or storage of medical marijuana that is physically separate and off-site from any medical marijuana dispensary and that is designated as part of the premises of a medical marijuana dispensary licensed pursuant to Chapter 15, Article XVI of the City Code. Medical mar�juana dispensary or dispensary shall mean a property or structure used to sell, distribute, transmit, give, dispense or otherwise provide marijuana in any manner to patients or primary caregivers pursuant to the authority contained in 4 Amendment 20 to the Colorado Constitution and the implementing state statutes and administrative regulations. Introduced, considered favorably on first reading, and ordered published this 2nd day of March, A.D. 2010, and to be presented for final passage on the 16th day of March, A.D. 2010. O Mayo ATTEST: City Clerk Passed and adopted on final reading on the 16XdaM;ar , A.D. 2010. 4111 Mayor ATTEST: " VA 0-�l City Clerk 5 ATTACHMENT 5 MY `X`E" �.. iv z`3't � 'x"ai�� �'i "�x.5�-ie�J•hro^Tr ;-R" r -fir c7 � s'� h+,v gTaffi' '�`"-. 'v'� `c cts <Yr `�'-' a:4A 4S�'� 3y +'�'F Y §..Yid e �`'' � t �`• 4 _0 a. � "�' ��,�.a .���-t.'_=t�'*N��.S�a��`��r�``ra �'p§� .g� '3'`- � ,w'"` *�• ` +�', e' T-.,fit{ 4. u.jys#.�..M 6 � wYj_ .ia�`_- S... n!:c..iM1 �"fii,j_' - c}(S' ...'` AT•[. r. A ..X 6Tx'lN3*44. grv&^4 Council Liaison: Lisa Poppaw Staff Liaison: Steve Dush Chair: William Stockover Phone: (H) 482-7994 Chair Stockover called the meeting to order at 6:02 p.m. Roll Call: Campana, Carpenter, Hatfield, Lingle, Schmidt, Smith, and Stockover Absent: Staff Present: Dush, Eckman, Barnes, Schiager, Olt, Virata, Stanford, and Sanchez- Sprague Agenda Review. Director Dush reviewed the agenda. Citizen participation: None Chair Stockover asked if anyone in the audience or on the Board wanted to pull items from the consent agenda. None did. Consent Agenda: 1. Minutes from the March 18, 2010 Planning & Zoning Hearing 2. Recommendation to City Council to Amend the Definition of"Occupancy" or"Occupy" in Land Use Code Section 3.8.16(D)(3) Member Schmidt moved to approve item # 1 March 18, 2010 minutes of the Planning and Zoning Board Hearing and item#2 Recommendation to City Council to Amend the Definition of "Occupancy" or "Occupy" in Land Use Code Section 3.8.16(D)(3). Member Campana seconded the motion. The motion was approved 7:0. Discussion Agenda: 3. Recommendation to City Council to Amend the Land Use Code to Allow Medical Marijuana Cultivation in Zones CL, CCN, CS, and RDR. 4. For Collins Discovery Museum Project Development Plan, #6-10. Project: Land Use Code Amendments to Allow Medical Marijuana Cultivation in Zones CL, CCN, CS, and RDR . 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 Planning &Zoning Board April 15, 2010 Page 2 Hearing Testimony Written Comments and Other Evidence Zoning Administrator Peter Barnes reported at its meeting on February 18, 2010, the Fort Collins Planning and Zoning Board considered proposed Land Use Code (LUC) 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 considers expanding 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. 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, 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, primarily 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. 11 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. Planning & Zoning Board April 15, 2010 Page 3 Board Questions The Board had no initial questions and Chair Stockover said that was due to the fact that the Board studied the proposal extensively at their worksession on April 9th. Public Input Troy Jones who is from MTA Planning & Architecture, 238 Walnut, Suite 200, Fort Collins, wanted to make a proposal (a friendly amendment to staff's proposal.) He has a client who owns Airpark Village (the old Fort Collins downtown airport.)which has a combination of uses on their Overall Development Plan (ODP) including residential (a mixed-use village), employment and industrial including a research and development park and light-industrial. Because the Land Use Code allows light industrial within the Employment Zone and because Peter Barnes mentioned that pharmaceutical manufacturing is allowed in light industrial; his client is asking that cultivation facilities be allowed in the employment zone with 700 feet of Airway Avenue. Jones noted examples where the LUC allows uses within a certain distance from a street including light industrial in the LMN Zone within 500 feet of East Vine Drive and mini-storage in the CS Zone within 150 feet of College Avenue. End of Public Input Board Questions Member Carpenter asked for clarification—do they want the medical marijuana cultivation in the same area for which a hotel is planned? Jones said correct. The owner views it as an interim use. His long term plan is for a hotel/conference center/trade show anchor with research and development uses. Carpenter asked if the developer was the land owner. Jones said yes. Member Hatfield asked if the amendment had been presented to staff. Director Dush said yes, staff has seen the proposal. The Medical Marijuana Business Staff Team (including Community Development and Neighborhood Services, Police Services, and City Attorney's Office staff) have reviewed this proposal and do not support it. Mr. Jones referred to light industrial uses allowed in the Employment Zone. Staff believes that the purpose and intent of the Employment Zone don't properly fit this particular use. Staff has not proposed the inclusion of grow facilities in the Employment Zone in the area noted by Mr. Jones nor in the Harmony Corridor Zone. Barnes added that the team also noted that signage will not be allowed for cultivation facilities. Many in the business do not view it as a good business model to publicize where their cultivation facilities are. They asked that the City, as much as possible, do not divulge the location. If we were to have an amendment in the LUC that said in the E Zone within 700 feet of Airway Avenue, it is like drawing a "bull's eye" there. You could be imposing a security risk on nearby properties. Chair Stockover said at this point he thinks the Board should focus on the original recommendation and when they get to the point of making a motion, they can talk about whether they'd like to include the friendly amendment. Member Smith said the recommendation is to include the non-Riverside portion of the CL Zone, why not the Riverside portion? Barnes said in Article 4 where permitted uses are listed, the CL Zone consists of the non-Riverside area and the Riverside area. Light industrial is only allowed in the non-Riverside area. The commercial buildings that front on Riverside are really a part of the residential neighborhood. Member Schmidt asked why we allow light industrial in Employment if it's not the purpose of the zones. Director Dush said the staff team's analysis and recommendations came after evaluating the purpose and intent of each of the proposed zones--not all the zones with light industrial were included. Schmidt Planning &Zoning Board April 15, 2010 Page 4 asked besides the Employment what other zones were not included. Barnes said the E and HC zones are the only ones. Chair Stockover said he watched the March 161' City Council meeting. He understands Council asked staff to expand the zones in which cultivation would be allowed. He agrees with staff that the study should be done but after looking at it he doesn't think he can support this recommendation to Council. The staff report indicates there is some concern that businesses will not be able to find a sufficient number of locations for cultivation. He believes the reason they may not be able to find sufficient locations is due to the "black cloud" reservation some land owners may have in leasing their land for that purpose and whether the operation would be legal or not. Stockover said even if we opened the whole city up to cultivation facilities, it would not speak to the cultivation business people's issue of affordability. He thinks what we've recommended initially is sufficient, that this industry is in its infancy; and, in his opinion, it would be better to walk before we run. After some time, if they return with real versus anticipated issues, then we could reconsider it. Stockover says the expanded areas being recommended are in the North College area. He doesn't think it's appropriate to an area where they're struggling to reinvent themselves. For all the reasons noted, he's not going to support the recommendation. Member Schmidt said when you limit cultivation to the Industrial Zone, you're targeting where those facilities could possibly be. She doesn't have a problem with opening it up to the other zone districts. Any business that wants to go in will need to go through development review and it will be assessed how well they fit in any particular location. She doesn't really think we're opening up that much more additional acreage and she will support the recommendation. Member Campana said he's not going to support the recommendation. He's of the opinion, that there's plenty of space in the Industrial zones for this use. Although, during their analysis, staff found it to be most closely resembled to light-industrial it isn't. He doesn't know what it is but it's not that. Opening it up in all the other districts is not the right thing to do in his opinion. He'd rather we see how the original recommendation goes and if we need to find more space, we can revisit it at a later date. Member Lingle said this recommendation is specifically in response to Council's direction to staff that they look at opening it up. He perceives his role is to determine if he agrees with staff's analysis and if these are the proper zones with the proper justification for taking it back to Council. From that point of view, he would support the recommendation. Member Carpenter agrees with Member Lingle. We are not necessarily saying it should be expanded, what we're saying is if Council decides to expand, it should be in the zones recommended by staff—is that correct? Director Dush said the Board would be saying to City Council that you do or do not support the recommendation for additional areas and the Board would be basing that support on Article 1 of the LUC in which the appropriate health, safety, and welfare elements of the purpose and intent of the proposed zone districts are met. Member Campana said it is for those reasons: health, safety, and compatibility perspectives, he does not support the recommendation. Chair Stockover said when he watched the City Council meeting, he concluded it was a long and intense meeting ending with the direction to staff to analyze and return with what's in front of the Board.tonight. He respects Member Lingle's opinion but it's the Board's role to give their opinion as to staffs analysis. He doesn't have a problem with staffs analysis. The underlying concern was there were not enough affordable buildings in which cultivation could take place. The Planning &Zoning board shouldn't be subject to an economic decision—whether there's enough affordable land. Their role is to determine if Planning & Zoning Board April 15, 2010 Page 5 it's an appropriate use in that zone. If the cultivation industry was a desirable client, there would be landlords "jumping through hoops" to sign leases. That's the issue. If cultivation is really that profitable, they should be able to afford to buy the land and develop it. He doesn't think that pushing it to North College is appropriate. Deputy City Attorney Eckman said there's been some question as to the intent of Council's request. He thinks that Council just wants the Board's honest opinion. They want your assessment of staff's recommendation for cultivation in the additional zones. If you think they should not be expanded, you could pass a motion to that effect. If you think they should be expanded but these are the wrong zone districts and some other zone districts are better because of their purpose statements, you could recommend those. You might even make a motion like Lingle and Carpenter suggested that if City Council wants to expand, these are the right ones. You can craft a motion any way you'd like to get the approval by the majority of the board. Member Lingle said in his opinion he's neutral on whether or not it's appropriate to expand the zone districts—that's a Council decision. His role is to evaluate staff's recommendation in terms of whether these are the right zones, have they done their analysis correctly, and can he support it or not. Member Schmidt says she feels the same way. She's not sure where affordable is being read into the analysis. Once you have a big warehouse, who knows what's going on inside. Those are the kinds of things that get reviewed in the development review process--they look at the use and its compatibility. She thinks (like Lingle)that staff did a good job in their analysis and recommendation and if Council decides to expand them, it's appropriate. Member Carnpana agreed that staff did a great job initially in recommending that only industrial be considered for cultivation. Staff is just following Council's direction in the "second run". He thinks we should just capture each individual board member's perspective and move on. Member Schmidt said initially they wanted the dispensaries and cultivation separate so industrial was recommended. In the second pass they're considering an option where they can be combined. Given that, they'd want zones where both are available. Member Smith asked staff for their thoughts relative to the two passes—how does the character of the industry come into play. Barnes said light industrial (as the definition implies) covers a wide variety of different types of business activities. A cultivation facility is a hybrid. The purpose and activity of a plant nursery and greenhouse is to grow plants, trees and shrubs for the purpose of selling them. That's not what a cultivation facility is primarily about. It grows product that can be repackaged and it reprocesses product into food products (a light industrial definition). We don't really have an agricultural zone. Even if you were to call it a plant nursery and greenhouse; those are only really allowed in the C, LIE, River Corridor and a couple of other zones—not where you necessarily find industrial uses. Staff thinks it "more closely" resembles light industrial as far as the activities that occur within the building. Barnes noted he misspoke earlier on the other zones that allow light industrial but that are not being recommended--LMN zone where it's allowed within 500 feet of Vine Drive is also not being recommended by staff. Member Smith asked if a lot of the distinctions between industrial and light industrial are characteristics such as outdoor production, noise, and odors—the nature of the business and the negative impact on a neighborhood. Barnes said all the characteristics noted by Smith define a heavy industrial use. Smith asked whether salsa production defined the lighter end of light-industrial. Barnes said it could be described as a small food processing and catering use depending on the size. Planning &Zoning Board April 15, 2010 Page 6 Member Campana asked why the original recommendation was only for industrial zones. Barnes said what they were hearing early on in their outreach to businesses was their preferred business model was that cultivation shouldn't be on the same premises where their retail would operate. Staff thought it would provide a big enough area. Staff didn't have any feedback prior to the 1" reading of the original ordinance that some people would prefer a business model where they'd have their "grow" on site with their dispensary. Member Campana asked if the stakeholder group changed significantly in the two analyses. Campana asked if new stakeholders surfaced. Barnes said there was not time for any outreach between adoption of the first ordinance and preparation of this new ordinance. Director Dush said with the original outreach, a select number of growers were interviewed. Over time there were others that indicated they'd rather have a "grow" and retail combined option. Dush said the evolution was not that of a typical land use study—it comes from it being allowed as a result of the passage of Amendment 20. Member Schmidt asked if the same team evaluated both recommendations. Dush said the core staff team has remained relatively constant with the recent addition of staff when considering the administrative component. Chair Stockover noted there are other options available to the industry, including space in the county. Member Lingle made a motion to recommend to City Council that if they chose to allow medical marijuana cultivation facilities as a permitted use in additional zones, then the CL(non-Riverside area), CCN, CS, and RDR zoning districts are the appropriate zones. Member Carpenter seconded the motion. Lingle said he thinks we also need to address Jones' request by amendment before a vote is taken. Chair Stockover said he couldn't support the motion unless we revise it to exclude CCN and CS zones. Driving that area, he does not see any readily available facilities. He thinks we're rushing it, those two areas are inappropriate, and there is not truly a need at this point. Member Hatfield said that more zones could be added later as need is shown. It's just a place to start. Director Dush agreed. City Council, with a recommendation from the Planning & Zoning Board, can either expand or retract uses in the zone districts. Member Lingle said the reason he phased his motion as he did was he also watched the City Council meeting. At the end of the day, a majority of the Council did believe the I Zone was not expansive enough. This opportunity needed to be provided in additional zone districts. He said the decision to expand them at all is at the Council level. Member Smith said this is an emerging industry. There are a lot of new uses of land such as algae farms. We're trying to figure out how they fit into the code. We still don't know how the full impacts will play out. We're left with a lot of questions. He thinks staff has done a good job of accommodating this industry and to make sure it's viewed as legitimate, credible, and afforded opportunities to do business. The issue is politically charged in a lot of ways and he thinks we've done a good job of keeping that out. He would probably not be willing to recommend the staff recommendation simply because he's not confident enough in his understanding of the industry's character (light industrial or something different.) We incrementally could add more as we understand the industry more. Chair Stockover said he likes Member Lingle's motion—"if they choose." We're giving an opinion so even if it wasn't there; City Council has the right to choose. Planning & Zoning Board April 157 2010 Page 7 Member Carpenter said because it is an emerging industry we're kind of feeling our way as we go. She thinks it's important we pay attention to the changes as they come. She thinks staff has done that. We're gaining information all along. She's convinced that the information gained has been put into staff's analyses. She's going to support the motion. Member Schmidt asked if the Board wanted to discuss Jones' request before voting. Chair Stockover said yes...he'd just like to focus on this one portion at this time. Member Schmidt said she agrees with Chair Stockover's comments relative to North College. Council may have some reaction to it when they see the map—the zone districts we're allowing cultivation are heavily located in the north part of Fort Collins. She doesn't know what their intentions were when asking for an expanded area. Those are some of her main concerns with this particular motion. Member Schmidt said relative to Jones' request, she sees the dilemma of identifying a specific location in the LUC. That does put a target on the map. She's wondering, however, can people rezone a section after we annex it because the surrounding area is industrial in the county. Barnes said prior to their annexation the Structure Plan Map called for that property to be zoned I but the owner requested E_ Barnes said they could request a rezoning. Schmidt said she'd rather see them pursue that option versus carving out this "box" in that location. Member Lingle asked for clarification...didn't we specifically exclude the ability for these facilities to go through the addition of permitted use process? Director Dush said yes. Lingle said unless there were other land owners in the E zone who were here tonight specifically asking to have their E property written into the ordinance, they would be excluded as an entire zone. Lingle said he'd have some problem doing that tonight. Chair Stockover asked if any member wanted to add an amendment addressing Jones' request. Member Schmidt said she doesn't think we have to say yes or no to it. If we don't' want to include it in our motion, our comments will be in the record and Jones will likely take his request to City Council. She asked Mr. Jones if that was correct and he nodded yes. Member Smith said he wouldn't support Jones' request. It goes back to his understanding, or lack thereof, of industrial and light-industrial. If he were to agree that the light industrial definition applies, he'd support the staff recommendation and by extension he would be supporting Mr. Jones' request as well but he doesn't and he isn't. Chair Stockover asked for a friendly amendment—that CS and CCN be excluded from the allowed areas. Deputy Attorney Eckman said that wouldn't be possible unless the motion maker agrees to it. Lingle said he prefers that Stockover does it as a formal motion to amend and if there's a second we could vote on that amendment. Stockover asked when that motion should be made. Eckman said now. Chair Stockover moved that the motion being considered be amended to exclude the CS and CCN zones from a permitted use for medical marijuana cultivation. (Died for lack of a second.) The original motion passed 4:3 (with Stockover, Campana and Smith dissenting.) OPTION # 1 (as adoptcd on First Reading) 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 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 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 , on April 15 , 2010, the Planning and Zoning Board considered the advisability of allowing cultivation sites in these additional zone districts and recommended approval of the proposed changes to the Land Use Code; and OPTION # 1 (as adopted on First Reading) 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 4H Other Areas Medical marijuana cultivation facility Not Pennitted 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- OPTION # 1 (as adopted on First Reading) Passed and adopted on final reading on the 4th day of May, A .D . 2010 . Mayor ATTEST : City Clerk -3 - OPTION #2 (Employment "E" zone, but only within 700 feet of Airway Avenue) 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 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 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 , on April 15 , 2010, the Planning and Zoning Board considered the advisability of allowing cultivation sites in these additional zone districts and recommended approval of the proposed changes to the Land Use Code; and OPTION #2 (Employment "E" zone, but only within 700 feet of Airway Avenue) 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 Section 5 . That Division 4 .27 (13)( 1 ) of the Land Use Code is hereby amended by the addition of a new subparagraph (f) which reads in its entirety as follows : (f) Industrial Uses : 1 . Medical marijuana cultivation facility (provided such facility is located within seven hundred (700) feet of Airway Avenue) . -2- OPTION #2 (Employment "E" zone, but only within 700 feet of Airway Avenue) 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 - 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, 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, are exempt from the licensing requirements of this Article, but 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 ofthe City of Fort Collins is hereby amended to read as follows : Sec. 15-465. Cultivation, growing and processing by licensees. (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 of the dispensary. All such cultivation facilities 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 . -3 - Section 4. That Section 15 -469 of the Code ofthe 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, orprimary caregiver, licensee or medical marijuana business that is licensed in another jurisdiction in the State ; (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 seven-dayany sell, give dispense, or otherwise distribute to another licensee, or to any medical marijuana business that is licensed in another jurisdiction in the State, more than four (4) ounces of medical marijuana in any usable form within any seven-day period of time ; seven-day( 5 ) sell to , or purchase from, another licensee more than four (4) ounces o medical mat ij uatia in any form within any .purchase or otherwise obtain medical marijuana from any source that is not properly authorized under state and local law to sell or dispense medical marijuana; (6) purchase or otherwise obtain from any licensee or from any medical marijuana business that is licensed in another jurisdiction in the State more than four (4) ounces of medical marijuana in any usable form within any seven-day period of time ; (67) 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, -4- 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 legal guardian who is a patient, e. a primary caregiver in possession of his or her patient's registry identification card or its functional equivalent under 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, f, 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 h, 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. -5 - 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 -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; (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 for entered into a legally binding, irrevocable unconditional obligation to expend more than 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 be issued a 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 provided, however, that: (a) any such applicant whose business location does not meet the location requirements contained in Section 15 -454 of the City Code or the zone district standards contained in Article IV of the Land Use Code shall instead be issued a one- year provisional license pending further action by the City Council by ordinance as provided in subsection (b) below; and -2- (b) applicants who 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 No . 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 -