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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/2010 - ITEMS RELATING TO MEDICAL MARIJUANA DATE: March 2, 2010 SUMMARY STAFF: Teresa Ablao, Peter Barnes, Steve AGENDA ITEM Dush, Steve Roy, Linda Samuelson, FORT COLLINSCITY COUNCIL Ginny Sawyer,Jerry Schia er Items Relating to Medical Marijuana. A. First Reading of Ordinance No. 025, 2010, Adding an Article to Chapter 15 of the City Code Governing the Licensing, Location and Operation of Medical Marijuana Dispensaries. B. First Reading of Ordinance No. 026, 2010, Making Amendments to the City Land Use Code Relating to Medical Marijuana. EXECUTIVE SUMMARY City staff has prepared two ordinances regulating medical marijuana businesses for Council's consideration. Second Reading of these ordinances is scheduled for March 16, 2010. The first proposed ordinance establishes a licensing process for all medical marijuana businesses as well as location requirements for medical marijuana dispensaries (MMDs) and their associated cultivation sites, and requirements governing the operation of these facilities. The regulations also address the cultivation of marijuana by patients and primary caregivers who serve no more than one patient and do not constitute an MMD. The second ordinance provides zoning regulations for medical marijuana businesses. The overall purpose of the regulations that would be imposed by the ordinances is to protect the rights of patients and primary caregivers as afforded by Amendment 20 and to also protect the public health, safety, and welfare of the community. The uniqueness and newness of this industry set it apart from other licensed business models and these regulations focus on serving the community as a whole, and not on protecting particular business models. A moratorium on the issuance of new licenses to medical marijuana businesses went into effect on December 11, 2009 and is scheduled to expire on March 31, 2010. If approved on Second Reading as scheduled, the ordinances would take effect prior to the expiration of the moratorium. BACKGROUND / DISCUSSION Regulating the medical marijuana industry is a unique challenge for the City. Marijuana use, production, and sale is { illegal under federal law,and the State of Colorado has not yet created a framework to regulate the medical marijuana industry. In this environment the medical marijuana industry has grown exponentially in a very short time. The number of authorized medical marijuana patients has grown from 5,000 in March 2009 to an estimated 60,000 today. The number of medical marijuana businesses has grown in numerous Colorado communities to meet this increasing demand and in the past year the number of medical marijuana businesses issued sales tax licenses in Fort Collins has increased from 3 in 2009 to 95 currently active. This is a very new industry for local government to regulate, and for this reason the ordinance proposed by staff is different from other local business regulations. While some of the components are borrowed from the licensing of pawn shops and liquor establishments,many of the components are unique to this use. Staff has attempted to provide a framework that establishes a clear and legal method for people to provide and consume medical marijuana while curtailing unlawful use and guarding against the secondary effects of MMDs. Staff has researched this issue, collected public input, and considered the concerns of patients, primary care-givers, dispensary operators, other business people and neighborhood residents. Staff believes that local regulations are needed to meet the unique aspects of this industry while addressing larger community concerns. The approach proposed by staff is innovative in relation to other local jurisdictions in regulating areas that are important to our city. March 2, 2010 -2- ITEM 27 Key Definitions Some of the definitions in the proposed ordinances are taken from Amendment 20 or other sources. Others have been developed by staff in order to implement the regulatory approach that staff is recommending,which is different in a number of respects from other models that were reviewed. For example, the term"medical marijuana business" has been developed to capture all components of a medical marijuana operation including, cultivation, delivery, and retail sales and operations. The terms"medical marijuana dispensary"and"medical marijuana cultivation facility"are also newly defined terms that are used in the regulations to address individual aspects of the business. License Requirements As discussed atthe February 9,2010 work session,an extensive licensing process is proposed as the firstcomponent of the regulations. Other requirements include payment of an application fee and an annual license fee. The fees would covercosts associated with the background check,zoning review, mapping required to determine if separations are met, application coordination, and routing to other departments. The initial non-refundable application fee is estimated to be approximately $500. If the applicant meets all application, licensing, and zoning requirements, the proposed licensed premises would be inspected and, upon approval, an annual fee of approximately$700 would be collected. The purpose of this fee would be to cover the cost of compliance checks by Police Services and other applicable City departments each year. The first step in the licensing process would be to conduct a background check on the applicant, manager, and all of the financial interest holders in the proposed medical marijuana business. Applicants would have to be at least 21 years of age. No license would be issued to persons who,within the last ten years, have been released from any form of court supervision for a felony criminal conviction or any crime involving fraud or intent to defraud,or to a person who has had an medical marijuana business license revoked orwho has submitted any fraudulent information in connection with the application. Prior to issuance of the license, the proposed premises would be inspected for compliance with all building and fire codes. In order to ensure compliance with all applicable regulations, no person or entity would be licensed to operate .more than three local medical marijuana businesses. All medical marijuana businesses operating in the City would have to be licensed, even if they are just delivering to patients in the City from an out-of-town business establishment. City sales tax would be collected on all such transactions. Inspections Licensed premises,including cultivation facilities,would be subject to inspection'by both Police Services and any other department concerned with compliance issues. Books, records, and inventory would need to be made available. At no time could the City release or make public any confidential record of the state, including patient information,except as otherwise required by law. Location and Land Use Code Requirements The City's Land Use Code (LUC) will be amended to specifically identify MMDs as a permitted use in those zone districts where MMDs are considered to be compatible with neighboring uses. Staff recommends that the various sections of Article 4 of the LUC be amended by adding a medical marijuana dispensary to the list of permitted Basic Development Review uses in the Downtown (D), River Downtown Redevelopment(RDR), Community Commercial (CC),Community Commercial-North College(CCN),Community Commercial-Poudre River(CCR),Commercial(C), and Service Commercial (CS) zones. Cultivation facilities will be limited to Industrial (1)zones. In addition to the zoning designations, staff is recommending separation requirements be included in the licensing regulations. The purpose of these is twofold. First, the 1,000-foot separation requirement from other MMDs is intended to avoid "clusters" of MMDs so as to minimize their cumulative impact on any particular area of the community. Second, community feedback and model ordinances from other communities suggest that separation requirements from such uses as schools, places of worship, parks and recreation areas are advisable because of the concern that exposure of youth to MMDs could decrease their perception of harm related to the use of marijuana or other drugs. March 2, 2010 -3- ITEM 27 The home occupation regulations in Section 3.8.3 of the LUC currently allow medical marijuana businesses to operate from dwelling units. The current regulations prohibit retail sales activities of medical marijuana products on the premises, but do not prohibit the storage of inventory or the cultivation of marijuana on the premises. Based on public input received during the moratorium and concerns for the safety of the home occupation license holder and neighbors, staff believes that neither the keeping of inventory nor the cultivation activities associated with a medical marijuana business are appropriate uses of property in a residential neighborhood. In the proposed LUC Ordinance,those persons who were issued a home occupation license prior to the effective date of the moratorium will have to modify their business activity, if necessary, so that the dwelling unit is used only as a business office. The Home Occupation license will not be renewed at the time of its expiration. Operations The following requirements would apply to the MMDs. • Each dispensary would have to be operated by the licensee or a designated manager. • On-site sales would be allowed only to patients and primary caregivers. Sales could include marijuana in any usable form, starter plants, seeds, paraphernalia, and other retail merchandise. No mature marijuana plants could be sold or maintained at the MMD. Quantities of marijuana sold to patients or primary caregivers would be limited to amounts permitted under Amendment 20 for personal medical use, with a limit of two ounces per customer per week. • Access to the licensed premises would be limited to those lawfully entitled underAmendment 20 to possess and use medical marijuana, as well as others whose presence is reasonably necessary to conduct business, assist patients, or repair, improve or inspect the licensed premises. • Food products containing marijuana would have to contain warning labels explaining legal limitations on possession and use. If the food has not been inspected by state or county health officials, the label would have to so indicate. • No on-site consumption of marijuana would be permitted. • No on-site cultivation of marijuana plants would be permitted. • Security requirements would include safes and video cameras. • Hours of operation would be limited to 8AM to 8PM. • Detailed transaction recordswould be required,and books and records would be subject to inspection by the City to ensure compliance with applicable regulations. • All normal Sign Code requirements would have to be met. In addition, if the term "marijuana"or an equivalent symbol(e.g., marijuana leaf)was used on a sign,or in any advertising, it would have to be preceded by the word "medical." Limitations on Cultivation Sites The following would apply to cultivation facilities: • Cultivation facilities would be allowed only in the Industrial zone. • To the extent permitted under the Colorado Open Records Act, the location of the site would not be made available by the City for public inspection. • The cultivation site would have to be operated by the licensee or by a primary caregiver employed by the licensee. • No signs indicating the nature of the operation would be permitted. March 2, 2010 -4- ITEM 27 • No outdoor cultivation would be allowed. • No on-site consumption or sales would be allowed. • Marijuana grown at the site could be distributed only through the retail outlet of the same MMD or delivery business. Limitations on Cultivation by Persons Exempt from Licensing Patients and primary caregivers who are exempt from licensing would be allowed to cultivate, grow or process marijuana with the following restrictions: • No outdoor growing. • No more than 12 marijuana plants may be grown, with a maximum of 6 being mature. No patient or primary caregiver may have more plants than they are entitled to possess under Amendment 20. Grandfathering At the February 9, 2010 work session, a majority of Council requested bringing forward a grandfathering option that would make all of the proposed regulations effective immediately except the new location requirements. Those would not apply to existing medical marijuana businesses until Council decides by ordinance that they should apply. The purpose of delaying that decision would be to determine two things: a. whether the City's other medical marijuana business regulations and any new state laws have significantly reduced the number of existing MMDs that would not meet the new location requirements; and b. how harmful it would be to grandfather those that are left. Pending that decision about grandfathering, no new medical marijuana.businesses would be allowed to submit an application for a license. The medical marijuana businesses that were established.prior to the effective date of the ordinance would need to apply for a license and pay the application fee before April 30, 2010. Those that fail to apply by that date and those that apply but are denied licenses because they do not.meet the non-locational requirements (such as the background check)would need to cease operations. Those that meet the licensing requirements would be issued a provisional license. They would not have to pay the $700 annual license fee unless and until Council decides that they can remain in operation at their current location. Once Council decides whether to grandfather existing businesses, applications will be accepted for new businesses. FINANCIAL IMPACT The medical marijuana regulation program is intended to be self-funding. Staff has considered the time and costs involved in medical marijuana business licensure and has estimated the fees accordingly. In an effort to save applicants money, the fee structure has been divided into two parts. The initial application fee which is presently estimated to be $500, would be due at the time of submittal. This fee would cover the estimated costs of administrative processing, zoning, location, and mapping research as well as background checks. If the application proceeds, staff would then perform on-site inspections of all licensed facilities. Prior to issuing the license, a second fee of $700 would be due. This fee would cover the anticipated costs of annual inspections, including compliance checks throughout the year. It would be charged annually upon renewal of the license. The amount of both these fees could be adjusted as deemed necessary by the City Manager but the amount of the fee would not exceed estimated costs. March 2, 2010 -5- ITEM 27 SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS As noted above, the fee structure has been estimated to cover staff time and out-of-pocket costs. The proposed regulations also take into consideration local business concerns regarding clustering and appearance issues thatsome feel could deter redevelopment. While some will argue that not allowing outdoor cultivation misses a sustainability aspect, community feedback and staff findings show the risks outweigh the benefits. 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 medical marijuana businesses at its meeting on February 18,2010. The Board unanimously recommended approval of the districts that would allow both MMDs and cultivation facilities. The Board was split on the home occupation recommendation. The area of concern for some was the potential hardship for small caregivers (less than 5 patients was suggested but not agreed upon)who would not be allowed to operate or cultivate out of their home and who would be required to obtain a license.There was also reservation about not even allowing just the business portion(no cultivation and no inventory)to occur at home under a home occupation license. By a 4-2 vote, the Board recommended approval of the definition of a marijuana business including the exemption for primary caregiver having only a single patient. As noted above, however, some members believed that the exemption should be broader so as to allow primary caregivers to serve more patients before being considered a medical marijuana business. PUBLIC OUTREACH The majority of public outreach regarding medical marijuana businesses was done in January. This outreach included individual interviews with operators of both a retail MMD operation and a home delivery model MMD,focus groups with patients, MMD operators, and with a group of interested citizens including business groups, property managers and school representatives. There was a communitywide open house, which approximately 100 people attended. On February 18, public comment was heard at the Planning and Zoning Board hearing for land use issues relating to medical marijuana businesses. The information and comments received from these efforts has been incorporated into the proposed ordinance. Council has also been provided notes from each of these meetings as well as copies of individual emails received. ATTACHMENTS 1. Map of Permitted Zones-City Wide (no separation distances) 2. Map of Permitted Land with Zoning and Spacing Restrictions City Wide- 1000 ft 3. Map of Permitted Land with Zoning and Spacing Restrictions north of Mulberry- 1000 ft 4. Map of Permitted Land with Zoning and Spacing Restrictions between Mulberry and Horsetooth - 1000 ft 5. Map of Permitted Land with Zoning and Spacing Restrictions south of Horsetooth- 1000 ft 6. Map of Permitted Land with Zoning and Spacing Requirements City Wide-500 ft 7. Map of Permitted Land with Zoning and Spacing Restrictions north of Mulberry-500 ft 8. Map of Permitted Land with Zoning and Spacing Restrictions between Mulberry and Horsetooth -500 ft March 2, 2010 -6- ITEM 27 9. Map of Permitted Land with Zoning and Spacing Restrictions south of Horsetooth -500 ft 10. Planning and Zoning Agenda Item Summary 11. Planning and Zoning Board February 18, 2010 meeting minutes 12. February 9, 2010 work session summary 13. Power Point presentation Medical Marijuana ATTACHMENT Permitted Zones - City Wide with no se aration distances 287 c I L lz. i Mountain -Vista Dry® _ _ �-Vine- Dr J s - a - -- iin \ on OIII�� J\ Mulberry_St � - I � Prospect Rd I\`ter ~ L 1 -J _ w )rake Rd Co, j t \ !E o E � � 1 fn J E� I --- -- - = Horsetooth L-i -' J Harmony' R1d I ' III I-'JT-- -- ;I „ Trilb Rd — � _ ; _ y- I AI � I - Permitted Zones 1529 acres 0 Industrial 2221 acres Community Commercial IN Community Commercial North College w E Community Commercial Poudre River ISCommercial cof Service Commercial Frt Downtown , ,fit CO GIS IS River Downtown Redevelopment Printed : February 24, 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 or warranty 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 City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Medical Marijuana ATTACHMENT Permitted Land with Zoning and Spacing Restrictions - 1000 ft City Wide 287 14 287 1 MountainNista= Dr Vine Dr 000L�\� Mulberry_St O�000 a _ - 00 _ Prospector IL-0 o Q ai Q IF t o E CU �I IE_ Horsetooth• Rd�n u HarmonY= 0�� J 7 Trilby-Rd I L Permitted Land - 408 acres Industrial - 1529 acres City Wide City Wide Within Zones : 1000 Feet From : Commercial District Schools Community Commercial - North College District Child Care w�E Community Commercial - Poudre River District Places of Worship s Community Commercial District Recreation Areas City of Downtown District Rehabilitation Facilities Fit CO«InS GIS River Downtown Redevelopment District Residential Zoning Service Commercial District Printed : February 24, 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 or warranty 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 City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Medical Marijuana ATTACHMENT Permitted Land with Zoning and Spacing Restrictions - 1000 ft Area North of Mulberry W= Douglas Rd � r --- E Douglas Rd E . County- Road 54 _0 v I m m > \ �° o C i O \ Z Richards Lake Rd -------------- ® E ,County Road : 5 I 1 287 I � I Country- Club A ° 14 / j ;' L- \ j � � -W-Willoz Ln �� L_. E_ - wii> r Mountain -Vista Dr E . County- Road 50 o +4>I � Q E L0 rn d9 J \ E — — — — — — — — - ENine D�r E . County. Road 48Z NL__—__—________—__—__l I ✓ I \ - e'�e , i \\' - --- - Laporte Avelnn ~so�s � E Lincoln Ave — — — — — — - W Mountain Ave= II II \ � C �L Q 3 0 x o er J E E° Mulberry: St rill; V) Cn Le J i J i -W= Laurel St Permitted Land - 165 acres Industrial - 1200 acres North of Mulberry North of Mulberry Within Zones : 1000 Feet From : Commercial District Schools N Community Commercial - North College District Child Care W + E Community Commercial - Poudre River District Places of Worship s Community Commercial District Recreation Areas City of �Fort Collins Downtown District Rehabilitation Facilities GI River Downtown Redevelopment District Residential Zoning Service Commercial District Printed : March 01 , 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 or warranty 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 City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Medical Marijuana ATTACHMENT Permitted Land with Zoning and Spacing Restrictions - 1000 ft Area Between Mulberry and Horsetooth I er : Wt = � pi tW P uerry: 'T Laurel : St=cn-u) o W- Elizabeth .St of coE W- Prospect- Rd E Prospect R - � _ — I -- — — —_ __ 1 Cn ' I O N / Q I Q U) fn (� (n of W= Drake Rd c = E Drake Rd —` E F 1 287 u) 1, ' I I , i I 1 I rn rsetoothH Rd - , � - W Horsetooth Rd E o N - Permitted Land - 151 acres Industrial - 329 acres Within Zones - Between Mulberry and Horsetooth 1000 Feet From - Between Mulberry and Horsetooth Commercial District Schools Community Commercial - North College District Child Care Community Commercial - Poudre River District Places of Worship Community Commercial District Recreation Areas N Downtown District Rehabilitation Facilities w E River Downtown Redevelopment District Residential Zoning s Service Commercial District Fort of II 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 or warranty �t Coll i nS 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 G IS 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 City disclaims, and Printed : February 24 , 2010 shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. JA Medical Marijuana ATTACHMENT5\ Permitted Land with Zoning and Spacing Restrictions - 1000 ft Area South of Horsetooth W Horsetooth Rd — E Horsetooth Rd - ffI II — \ �0 C o Ceo m � did w N W \d/�Or 0 C U ` _J W= Harmony- Rd �o E; Harmony; RdJ�j -o F > U) II rn III 287 I � I E County- Road ' 36Kechter Rd Kechter- Rd -- CL v I -4 I L /' I N I _J I I W=Trilby Rd — E=Trilby- Rd 1---- + J 0 I 1 E to N -p / N - 1 L E \ — � --- ountY- Road: 32 _-.�--------------- Carpenter- ------- -- ---- --- -- ---- � � �c 0 0 L) Permitted Land - 92 acres Industrial - 0 acres South of Horsetooth South of Horsetooth Within Zones - 1000 Feet From - Commercial District Schools N Community Commercial - North College District Child Care W + E Community Commercial - Poudre River District Places of Worship s Community Commercial District Recreation Areas City of ,fit Collins Downtown District Rehabilitation Facilities GI3 River Downtown Redevelopment District Residential Zoning Service Commercial District Printed : February 24, 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 or warranty 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 City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Medical Marijuana ATTACHMENT Permitted Land with Zoning and Spacing Restrictions - 500 ft City Wide 287 Mountain=Vista=Dr Dr OQoo�o�® _sty - -Mulberry- Prespeetl Q y a) L).rake-Rd=ro `o F � Jig J Hor-setoeth-I■�� Harmony - vu Trilby=Rd F1 7 FIF Permitted Land - 1 060 acres Industrial - 1 529 acres City Wide City Wide Within Zones : 500 Feet From : Commercial District Schools N Community Commercial - North College District Child Care w+E Community Commercial - Poudre River District Places of Worship s Community Commercial District Recreation Areas cllins ay °f Downtown District Rehabilitation Facilities Fit CO GIS River Downtown Redevelopment District Residential Zoning Service Commercial District Printed : February 24, 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 or warranty 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 City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Medical Marijuana ATTACHMENT Permitted Land with Zoning and Spacing Restrictions - 500 ft Area North of Mulberry W- Douglas Rd � -- --------, E Douglas Rdl E . County- Road, 54 m CU I0 \ E ` =3 \ U �\ Z C�000 � - -------- --� RichardSlLake; Rd ® E County. Road ' 5 1 I I rn F` Country- Club , Rd 14 �I i -0 -W=Willoz I _ Ln - E,� j Mountain --Vista: Dr E . CountyARoad150 > _ ®� Q _ Z _. yi J __— ca Z c , E _ - , E-Vine,\Dr EtCount ARoad 48 NZ — .. co Laporte Ave' 00.) � E Lincoln .Ave % L ----------------- ---- W Mountain Ave F `�,fv\ tI C Q N O c �2 N J __� e - E - r= — J_ ElMulberry- St 'J ` r �Vj l L -W= Laurel � St -�_��:�.� Permitted Land - 452 acres Industrial - 12oo acres North of Mulberry North of Mulberry Within Zones : 500 Feet From : Commercial District Schools N Community Commercial - North College District Child Care w+E Community Commercial - Poudre River District Places of Worship s Community Commercial District Recreation Areas City of ins Downtown District Rehabilitation Facilities Fit CO S GI River Downtown Redevelopment District Residential Zoning Service Commercial District Printed : February 24, 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 or warranty 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 City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Medical Marijuana ATTACHMENT Permitted Land with Zoning and Spacing Restrictions - 500 ft Area Between Mulberry and Horsetooth cn rn W= Mulberry: St 3jN �� <ynco/nPve —� — E° Mulberry:St — _ � � -' 1- � 14 ? Ji W= Laurel : St=�- h o �'��, � '-7 y � \ S G WrEhzab to h :Stof �co E 0 — —\ W= P- rospect Rd 11 E Prospect Rd U) > O N Q i U) J p O UJI U) of W= Drake Rd c = E Drake Rd —` E F 1 287 u) 1, ' I I i � 1 W Horsetooth , Rd E, Horsetooth RdII - � -N , . - Permitted Land - 313 acres Industrial - 329 acres Within Zones : Between Mulberry and Horsetooth 500 Feet From : Between Mulberry and Horsetooth Commercial District Schools Community Commercial - North College District Child Care Community Commercial - Poudre River District Places of Worship Community Commercial District Recreation Areas N Downtown District Rehabilitation Facilities w E River Downtown Redevelopment District Residential Zoning s Service Commercial District Fort of II 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 or warranty �t Collins nS 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 G IS 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 City disclaims, and Printed : February 24 , 2010 shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Medical Marijuana ATTACHMENT Permitted Land with Zoning and Spacing Restrictions - 500 ft Area South of Horsetooth W Horsetooth Rd E Horsetooth : Rd II L Of \ \ o \ N �\ w c CID W= Harmony= Rd � E; Harmony. F2d � E > cn 0 5 m CID IV n cn -- T OI 287 E County- Road ' 36Kechter Rd Kechter- Rd -- 0 Q_ I� ,\ Of � \ — — a) 0 J i — N —� W=Trilby- Rd �,. E-Trilby- Rd --- — 1 > i I \ E —1 N p %i N J Of N U) D \ L E11 _ — J�� \ --- --------- Carpenter -�' ��- -o ---- E Count p nter Rd — — — — — — — — — — CID Y Road: 32 - 0 Of 0 0 Permitted Land - 294 acres Industrial - 0 acres South of Horsetooth South of Horsetooth Within Zones - 500 Feet From - Commercial District Schools N Community Commercial - North College District Child Care W+E Community Commercial - Poudre River District Places of Worship s Community Commercial District Recreation Areas City of Downtown District Rehabilitation Facilities Fit Co Gns «lS GIS River Downtown Redevelopment District Residential Zoning Service Commercial District Printed : February 24, 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 or warranty 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 City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. PLANNING AND ZONING BOARD ATTACHMENT 10 Agenda Item Summary February 18, 2010 PROJECT : Land Use Code text amendments to regulate medical marijuana dispensaries and medical marijuana cultivation facilities . APPLICANT : City of Fort Collins PROJECT DESCRIPTION : This is a request for a Recommendation to City Council regarding Land Use Code amendments intended to allow medical marijuana dispensaries ( MMD ' s ) and cultivation facilities as a permitted use in appropriate zones and to regulate the manner in which such a business can operate as a home occupation . RECOMMENDATION : Approval EXECUTIVE SUMMARY : On December 1 , 2009 , the City Council adopted Ordinance No . 128 , 2009 (the " Moratorium Ordinance " ) , which established a moratorium on the acceptance and processing of any applications to the City for the approval of licenses , permits or development proposals related to the establishment or operation of MMD ' s . During the moratorium , which is scheduled to end no later than March 31 , 2010 , no MMD ' s have been allowed to establish their businesses or continue to operate except those that had been issued a sales tax license prior to December 11 , 2010 , and that were in zone districts that currently permit such businesses , that is , those that allow retail sales . The Moratorium Ordinance also directed the City Manager to analyze several issues , one of which is the impact of MMD ' s on the character of residential neighborhoods and commercial areas where they may be located , and to develop for Council consideration such regulations as deemed necessary and appropriate . BACKGROUND : City staff has met on many occasions over the last few months to develop proposed regulations and to conduct numerous public outreach efforts . Staff then presented proposed regulations to City Council at the February 9 , 2010 Council work session . The regulations presented at that time included MMD licensing components , grandfathering of existing MMD ' s , retail operation requirements , spacing requirements , cultivation limitations , security , and appropriate Land Use Code zoning districts and home occupation requirements . The Planning & Zoning Board ' s role is to provide a recommendation to City Council with regard to only the Land Use Code amendments ( appropriate zones , home occupation regulations , and definitions ) . The Board will not make a recommendation to Council with regard to any of the other components of the comprehensive set of regulations dealing with licensing , grandfathering , operation , spacing , or cultivation . Those regulations will be added to the Municipal Code . The proposed Land Use Code amendments that follow are in response to the direction contained in the Moratorium Ordinance . They address modifications to the home occupation regulations , identify the appropriate zones for MMD ' s and Cultivation Facilities , add appropriate definitions , and prohibit MMD ' s and Cultivation Facilities from the "addition of permitted use " process . PROPOSED AMENDMENTS : Home Occupations Problem Statement The home occupation regulations in Section 3 . 8 . 3 of the LUC currently allow medical marijuana businesses to operate from dwelling units . The current regulations prohibit retail sales activities of medical marijuana products on the premises , but do not prohibit the storage of inventory or the cultivation of marijuana on the premises . Proposed Solution Based on public input received during the medical marijuana moratorium and concerns for the safety of the home occupation license holder and neighbors , staff believes that neither the keeping of inventory nor the cultivation activities associated with a medical marijuana business are appropriate uses of property in a residential neighborhood . Those persons who were issued a home occupation license prior to the effective date of the moratorium should modify their business activity so that the dwelling unit is used only as a business office , and should then end the business office use by the expiration date of their license . Additionally , the home occupation ordinance currently doesn ' t contain the ability for revocation of a license . In order to clarify that any type of home occupation is subject to revocation , such a provision should be added . Therefore , staff recommends that Section 3 . 8 . 3 of the LUC be amended by adding a new subsection ( 10 ) ( h ) , and by amending the language in subsection ( 11 ) as follows : ( 10 ) A home occupation shall not be interpreted to include the following : ( h ) medical marijuana dispensaries or medical marijuana cultivation facilities , except that those dispensaries 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 , 2 provided that no medical marijuana in any form , is kept on the premises and there is no cultivation of marijuana plants on the premises . ( 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 . Add use to the various zones Problem Statement The permitted use lists for the various zone districts in Article 4 of the LUC currently do not include a medical marijuana dispensary or a medical marijuana cultivation facility . Therefore , such uses are not allowed within the city . Proposed Solution Staff recommends that the various sections of Article 4 be amended by adding a medical marijuana dispensary to the list of permitted Basic Development Review uses in the D , RDR , CC , CCN , CCR , C , and CS zones as follows : Division 4 . 16 Downtown District ( D ) ( B ) (2 ) ( C ) Commercial/ Retail Medical Marijuana Dispensary BDR BDR BDR 3 Division 4. 17 River Downtown Redevelopment District ( R= D =R) ( B ) ( 1 ) (f) Commercial/Retail Uses : 1 . Medical marijuana dispensary . Division 4 . 18 Community Commercial District ( C =C ) ( B ) ( 1 ) (f) Commercial/Retail Uses : 1 . Medical marijuana dispensary . Division 4 . 19 Community Commercial — North College District (C =C =N ) ( B ) ( 1 ) (f) Commercial/Retail Uses : 1 . Medical marijuana dispensary . Division 4 . 20 Community Commercial — Poudre River District ( C =C = R) ( B ) ( 1 ) (f) Commercial/Retail Uses : 1 . Medical marijuana dispensary . Division 4 . 21 Commercial (C ) ( B ) ( 1 ) (f) Commercial/Retail Uses : 1 . Medical marijuana dispensary . Division 4 . 22 Service Commercial ( C =S ) ( B ) ( 1 ) (f) Commercial/Retail Uses : 4 1 . Medical marijuana dispensary . Proposed Solution Staff recommends that Section 4 . 28 ( B ) ( 1 ) of the LUC be amended by adding a new subsection (f) ( 1 ) to the list of permitted uses in order to allow a medical marijuana cultivation facility in the Industrial zone subject to Basic Development Review . This use will not be allowed in any other zone . Division 4 . 28 Industrial District ( 1 ) ( B ) ( 1 ) (f) Industrial uses : 1 . Medical marijuana cultivation facility . Prohibit MMD ' s and Cultivation Facilities from the "Addition of Permitted Use " process Problem Statement Section 1 . 3 . 4 of the LUC authorizes the Planning & Zoning Board to allow uses in a specific zone district that aren ' t otherwise allowed . For example , the Board could allow an MMD in the Low Density Residential zone upon making certain findings . The " addition of permitted use process " is intended to allow the Board such flexibility in cases where the proposed use conforms to the basic characteristics of the zone district and satisfies other compatibility standards . When making such determinations , the Board can place many conditions on an approval in order to address compatibility concerns . However , since the licensing , spacing , operational , and cultivation regulations for MMD ' s and Cultivation Facilities are contained in the Municipal Code , rather than in the LUC , the ability of the Planning & Zoning Board to add conditions or grant modifications as it would for other uses doesn ' t exist . Proposed Solution Staff recommends that Section 1 . 3 . 4 (A ) of the LUC be amended as follows : 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 (56 ) and (67 ) 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 , 5 ( 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 ; (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 ; (56 ) 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 ; (67 ) 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 . ) Definitions Problem Statement The LUC currently does not contain a definition for a medical marijuana dispensary or a medical marijuana cultivation facility . Proposed Solution . Section 5 . 1 . 2 should be amended by adding definitions for a medical marijuana dispensary and a medical marijuana cultivation facility as follows : Division 5 . 1 . 2 Definitions . Medical marijuana dispensary or MMD shall mean a building or premises used to sell , distribute , transmit , give , dispense or otherwise provide marijuana in any manner to patients or primary care-givers pursuant to the authority contained in Amendment 20 to the Colorado Constitution and the implementing state statutes and administrative 6 regulations , except those properties or structures that are used by an individual primary care-giver to provide marijuana to a single patient . Medical marijuana cultivation facility or cultivation facility shall mean a building or premises used for the cultivation and storage of medical marijuana that is physically separate and off-site from any medical marijuana dispensary and is designated as part of the premises of a medical marijuana dispensary licensed pursuant to Chapter Article _ of the City Code . RECOMMENDATION : Staff recommends approval of the proposed Land Use Code Amendments 7 ATTACHMENT 11 "{- 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, Lingle, Schmidt Smifftand Stockover Absent: Hatfield00 Staff Present: Dush, Eckman, Barnes, Sawyer, SchiTr, and Sanchez-Sprague Agenda Review. Director Dush reviewed the agenda. / Chair Stockover asked if anyone in the audience or on the Board wan ed to pull items fro the consent agenda. None did. . Citizen participation: None Consent Agenda: 1. Minutes from the January 21, 2010 Planning & Zoning=Hearing Member Schmidt moved to-a p ove item # 1 Jan ua 1, 20101minutes of the Planning and Zoning Board Hearing. MemberELngle seconded the motion. The motion was approved 6:0. Discussion Agenda¢ 2. Land Use Code Am M na D Ments Medical Marijuaispensaries Project: La Wse CodeyAmendments— Medical Marijuana Dispensaries .lam A /�. Project Description: This is alrequest for a Recommendation to City Council regarding Land Use Code amendments intended to allow medical marijuana dispensaries (MMD's) and cultivation f cilities as a permitted use in appropriate zones and to regulate the -manner in which such a business can operate as a home occupation. Recommendation: Apo Hearing Testimony, Written Comments and Other Evidence Zoning Supervisor Peter Barnes reported on December 1, 2009, the City Council adopted Ordinance No. 128, 2009 (the "Moratorium Ordinance"), which established a moratorium on the acceptance and processing of any applications to the City for the approval of licenses, permits or development proposals related to the establishment or operation of MMDs (Medical Marijuana Dispensaries). During the moratorium, which is scheduled to end no later than March 31, 2010, no MMD's have been allowed to establish their businesses or continue to operate except those that had been issued a sales tax license prior to December 11, 2010, and that were in zone districts that currently permit such businesses, that is, Planning &Zoning Board February 18, 2010 Page 2 those that allow retail sales. The Moratorium Ordinance also directed the City Manager to analyze several issues, one of which is the impact of MMD's on the character of residential neighborhoods and commercial areas where they may be located, and to develop for Council consideration such regulations as deemed necessary and appropriate. City staff has met on many occasions over the last few months to develop proposed regulations and to conduct numerous public outreach efforts. Staff then presented proposed regulations to City Council at the February 9, 2010 Council work session. The regulations presented at that time included MMD licensing components, grandfathering of existing MMD's, retail operation requirements, spacing requirements, cultivation limitations, security, and appropriate Land Use C. (UC) zoning districts and home occupation requirements. The Planning & Zoning Board's role is to provide a recommendationa to CitywZuncil with regard to only the Land Use Code amendments (appropriate zones, home occupation regulations, and definitions). XAQ� The Board will not make a recommendation to Council with regard to any of the other components of the comprehensive set of regulations dealing with licensing, g�ndfathering, operation, acing, or cultivation. Those regulations will be added to the Municipal Code. J The proposed Land Use Code amendments are in respon"se5the direction contained inthe Moratorium Ordinance. Director Dush said they address modifications to`the home occupation regulations, identify the appropriate zones for MMD's and Cultivation Facilities, add`appr,�opriate definitions, and prohibit MMDs and Cultivation Facilities from the addition of permitted use'aprocess. Barnes highlighted the Home Occupancy changes-% • No new home occupation licenses for MMDs caffiRissued. • Existing home occupation licenses will be modified�to al wZeir for business office use only. No inventory or cultivation imbuilding or on premises m M, • Existing home occupations,�nce modified, can continue expiration date. No renewal allowed after that` • New provision added,to allow revocation of`a"ny type of home occupation licenses. In addition to modifying homeq occupat re-e- ulations,.th�endments will add MMDs and cultivation facilities as a�perffiittedfu�se in appropriate zones 1t will prohibit MMDs and cultivation facilities from the Addition ofPermitted=Use-process�d add definitions for MMD and cultivation facilities. City Council will review;the LUC amendments ordinance on March 2 (15` reading) and March 16 (2nd reading). The following staff members are,avad rable fo questions: Community Development & Neighborhood Services Director St�eDush, Zoning Supervisor Peter Barnes, Neighborhood Administrator Ginny Sawyer, and Vft Police Services>Cpt. Jerry Schiar. Board Question Member Schmidt saidthe ordinance does not note a specific number of days when the operator of a MMD home occupatiom` ill aeed to remove inventory from their premises. When will that be decided? Barnes said those are operational issues which are still being discussed. They will possibly be a grace period to allow staff to get up to speed on MMD licensing (Municipal Code). It could be between 30-120 days. Member Schmidt asked why dispensaries would not be allowed in the Industrial Zone. Barnes said the Industrial Zone is not an area where we want to encourage retail sales. Retail sales are not allowed in the Industrial Zone except in a convenience shopping center. Its purpose is for different types of uses— not retail. 2 Planning &Zoning Board February 18, 2010 Page 3 Member Schmidt asked if that was the same for the Employment Zone with its 25% secondary uses. Barnes said retail sales are allowed in the Employment Zone only in a secondary use convenience shopping center. Member Schmidt noted some of the concerns expressed during public outreach related to how a proprietor might want to operate a dispensary as a delivery only business. How will that work? Will they have to rent a space and run their business from a retail space? Barnes asked if she was asking about someone who is currently operating as a home occupation. Schmidt said yes and those wanting to start a delivery only business. Barnes said once the home occupation licenses expire they can no longer use their home as a business location. They will have to find a commercial arin which they will conduct their business. Cpt. Schiager said the cultivation and storage will need to=fake place "off site". He said they could still use a home delivery type model but they would have to=cult vate somewhere other than their residence. Because home occupation businesses are public zrecord, people can find out where "their offices" are located. Barnes said during public outreach, neighbors hadfc f cerns about large stores of cash. He said a lot of the proposal is safety driven—ode eloped as a re uy f neighborhood concerns. Member Lingle said the LUC does currently allow incidental sale of is ock, supplies or products. This proposal expressly restricts sale of product from that home cupaionls there a particular reason beyond what has been previously stated? Barnes said that's t=a`change. Currently there are no home occupation businesses that can have retail sales on their premise Incidental, in the case of a beauty parlor, means a supply of hair products for your,service customers ern incidental sale is an adjunct to their primary service. You cannot start markettiing to�.the greater communityIM ME Member Lingle referred to the cultivation facilitand MMD definitions in'LUC Section 5.1.2. In the definition of MMD it reads._.Amendment 20...care givero p o dd marij ana to a single patient. What does that refer to? Schiager saidda person who is either a patientotthhh mselves or caring for one other patient would not be required=togo`through the MMD licensing process. Director Dush said under the above described scena��hey wo dot be a dispeffi nsary; it is effectively an exemption. Also, in the proposed ordinance tthere some language related town individual primary care-giver with a single patient and the limited number of plants allowed within their residence. NO Member Lingle sai the understood the gisf is to tg ryo�control the larger scale commercial operations but what he's reading into tthat=exception s that there could be many single providers without any regulation. Dush sathe short answe§yes. Toaddress the patient need and to address the spirit and purpose of Amendment 20; it would exempt a caregive��r---with a single patient operations from MMD licensing and it would on t bedconsidered a ho nee--occupa n business. Member CamoRnaa understands a distinction is "to provide" rather than "to sell". Member Schmidt asked if the one additional person is a part of Amendment 20? Cpt. Schiager said no. Schiager said they are trying to ma a accommodations for the one-to-one relationship with small scale activity that wouldn't have the sampact on property nor have the safety concerns of robbery, etc. Chair Stockover asked for a clarification of who governs in that situation and how much could that person grow/possess at any given time. Schiager said there are limitations under Amendment 20 that a designated patient can grow up to 6 plants-3 mature and 3 immature unless they have a physician's recommendation for more. Barnes said that limitation will be included in the Municipal Code's licensing regulations. Member Linger asked if in Section 5.1.2 definitions there was a duplication error. Barnes said no the language shown was intentional. 3 Planning &Zoning Board February 18, 2010 Page 4 Member Schmidt said she's still hung up on the delivery business. She's concerned that someone who cannot have a home occupation business would need to go out and rent office space for basically taking phone calls and collecting/keeping money somewhere other than their home. She asked if there was that kind of small office space in a commercial zone. Schmidt said if you're doing a delivery type business and if at the end of the day you took your money to the bank, why would you need an office. Dush said the LUC elements and Municipal Code elements do pair together here. There are two components in the proposed licensing provision—one license but the two components—dispensary and cultivation. Sawyer asked if Schmidt's concern was placing an undue hardship of not.ha g-your office on site—if in a delivery model we are already saying they're not going to have any cultivation or storage of marijuana on site. Schmidt agreed that was her concern. Sawyer said those are--discussions staff have had. Due to public feedback they are proposing that even the office is not allowed on=slte If public records are involved, there is a potential for targeting it. If that target is in a neighborhood;th'a�t its a concern. Member Campana said that currently commercial space has 19%vacancy rate�smrental space should not be an issue. %W Member Campana asked if any thought was given to'A"rolling (mobile) dispensary?" Vtthere a possession law being broken? Schiager said as long as J''e_�son Isla designated care g ver for a number of patients they can transport marijuana to those patient"sue" Member Carpenter asked if they can operatetout of their vehicle. Barnes said the licensing ordinance Wffin�prohibits mobile facilities—offices, etc. SchiageiFsa d the distinction**i--- y've heard reports from the Denver metro area where there are vans with b@g decallsthat show up at ncerts at Red Rocks—the mobile dispensary. They are trying to avoid that=type of business but still=allow for home delivery M:- ,V because some patients are not mobile and cannopick up`th'e ill redtion. Schiager said it's a delivery model not necessarily a mobile office model. WX Member Lingle said it sounds like th y couldn't even do their books at the kitchen table. Member Carpenter asked how4tt OWN,- be a orced. Direct Dus�h said there are two components to the MMD license—the cultivation and=the dispensary. We would�ri tfknow if they took their books home with them but we do know they would havefan�offic,front" as a part of the licensing provision. 3 Member Smith-asked�whatwe know about the future of these industries as relates to scale—the magnitude of facilities WhaYs the largest dispensary in the Metro Denver area? Smith asked if a PDP (Project Development Plan)e e w would=be°required if someone rents the old Wal-Mart at Harmony & College?§-Schiager says it's un-ertain. Ine last year we've gone from 5,000 people on the registry to VMM50,000. Fut regrowth may depend on action pending at the State level. Schiager said he's heard of dispensaries thatGhave claimed they have 1,500 patients and multiple grow operations. Member Smith ha ncerns ab�t not anticipating "that large of a scale." Schiager said when they IV started the process theirbelief'was that some elements were for the State to control—things such as the number of patients, the IN a caregiver could care for, and the doctor/patient relationship. When they went out for public4comment, they had distance requirements between cultivation sites as well as maximum square footage for cultivation sites. They were asked by people in the industry for what purpose. Isn't it better to have it all in one place? Maybe it provides for better security to have more large scale operations even in an industrial area. Schiager could not articulate how large a square footage of an operation should be or even the basis for that number. Sawyer said many in the industry agree they don't want their cultivation and dispensing in the same place. They don't want their cultivation site known. 4 Planning &Zoning Board February 18, 2010 Page 5 Member Campana said he believes you could make calls from your home or your car—you just couldn't dispense from there. Deputy Attorney Eckman said you couldn't sell from your home. The definition of dispensary says it is used to sell, distribute, transmit, give, dispense or otherwise provide Eckman said you could take care of incidental business tasks such as complete tax forms from your home. Member Carpenter asked if we were treating dispensaries differently from pharmacies. Schiager said yes we are--pharmacies have state and federal regulations they need to follow. Schiager said the problem in this industry is there have been no regulations as it's developed. Carpenter said she'd like to know how the differences relate to the LUC. Director Dush said as the Boardkn�ows all sorts of uses are allowed within certain zone districts. This is not unlike that. Dush said stlooked at cultivation and dispensaries and their placement in particular zones as it relates to landluse and the impact of those uses. Dush said a pharmacy is not allowed in a residential zone districts OF Member Schmidt asked what if the State makes changes which,would then differfrom our regulations (a Aft M caregiver can have 5 versus a single patient?) Schiager said<if was,quite possiblee might need to go back and do some rewriting if the State changed the landsc p ng significantly. Public Input: Alfred Fael is a resident of Fort Collins. He's a marijuana patient and-the=Publications Director of Front Range NORMAL. He has a primary caregiver and an a[tern a a ear g ver. They are going to come close _. to being put out of business by the proposed Code changes as one within a block and a half of a church. How will the Board address those types of conflict? Monty Berry lives at 415 S. Howes Street. He saidrear%giving is fundamental to Amendment 20. .� _ft Caregivers are an integral component and it seems intrusrve;when you cant call home to home. He asked when you "cast the net," you keep it cont zttual t ti5 equirrreed for the patients and their caregivers. He would also ask=the Board to not mak o prohiMC6 where a dispensary can operate. Kurt Scrampson lives at,821 Colorado: He thanked everyone for their work. The proposed definition of a MMD as found on Page23he Febr ary 9"' City Counl Work session materials states a MMD does not include a patient or pnmary,�careg ver that provides medical marijuana to only one patient. This proposed definition will create a largesmfluxJn the number of small grow operations in the City of Fort Collins. For example �caregivQh�as 5 patients a grows their medicine under Colorado Amendment 20; they will=-,be°forced to open 4 new grow operations for a total of 5 grow operations where there was only on%Sdfore. He asked- please imagine the caregiver who has significantly more patients and how many.mo[e grow operationswould spring;up>all over the city. The proposed definition would also force -q caregiversto open up a retaiFtlispensary`location which will lead to a surge of dispensary openings in Fort Collins. Scrampson askr@how you wouldtsupply a retail dispensary if you only have 2-3 patients since the proposed definitiongmakes anyone with more than 1 patient open up a retail operation. How do you support a retail operatio with only 2-3 patients and cover the large overhead costs associated with a retail business? He saiddt=s=s just not possible. As The Coloradoan recently stated, the feasibility of a dispensary owner finding location where the landlord will rent to them is simply impossible. By making caregivers with more than 1 patient register as a dispensary, it creates an environment where they cannot survive. Don Cruickshank owns a dispensary at 123 E. Drake—a Kind Place. He's been there for about 2 years. He's paid a substantial amount of sales tax. He asked why only commercial or industrial zones are allowed. Why have you just narrowed it down to two types of zones instead of considering a medical and agricultural zone? Why is outdoor growing not allowed? 5 Planning &Zoning Board February 18, 2010 Page 6 Donna Lawson said she's a primary caregiver for several patients. She is also a partner in a dispensary. She'd like to speak from a primary caregiver perspective. She has 4 or 5 patients who live in Denver who are mostly female MS patients in their 60s, and who are wheel chair bound and live on approximately $800 Social Security income per month. She works with NORMAL and a facility in Denver called Atlantis that is for physically and emotionally challenged people. She provides free medicine to her patients and has a small amount left that she sells—it does not provide enough to support her. She doesn't understand why she needs to open a store front to provide for her patients. She's not sure where she can go with this and has already told her patients she does not know if she can continue to provide for them. She agrees with the residential situation but she doesn't understand why she needs a RW retail space to deliver to 5 patients in Denver. She feels as if they're limiting; to serve her patients. Member Schmidt asked if she could fold her Denver patients iirifYthe dispensary in which she is a partner. Lawson said she just happens to be involved in a dispensaryAbut she knows of many care givers who aren't and who don't want to be public. She said the St to legislationIaion being proposed has a 5 VM patient limit so it's already "upping" the grow situation. Russ Orsborn lives in Fort Collins. He's finding from what -^sreading and watchi6Qithat MMDs are being categorized the same as liquor stores and pawn brokers. He was curious how that-,decision was arrived at since they probably don't have a lot in com n with them.£ e realizes this is n6�v and it's not easy to just come up with rules but he was hoping they couldbe a little more creative in finding a category that a medical dispensary could fit into. He also do s notl ant to be categorized as a pharmacy because unlike a pharmacy if someone were to break=ih there is very little that would hurt them. Orsborn said if we push medical dis onsaries into commevrci5kand industrial zones, he's envisioning his 79 year old mother having to maketa trip to a parking lot-in those zones. He asks that we be careful we don't push medical dispensaries to places where patients zitthe a -9be challenged to go. Travis Cutbirth has a business at 420 "D" S. Howes. Hea'p rticipated. working groups—there have been really good questions.and conversations Obviously there°are a number of parties with different perspectives. Fo sbme p maple, this is going to be the end of western civilization. This is a unique industry—it's notlquite like a§phaarmacy, its n6fiexactly like a liquor store, it's nothing like an adult book store. It is a little;bitlike a farmers?market. You are care giving for someone with whom you have a different relationship—you ve-legally registered with thesState. He has a retail establishment with a partner. His concern is that aah�%cchan�ge fair�o everyb dy. Theirs is a very specialized skill set—the demand for caregiversby some�estlmates�iis�for-�300 000 people. It's a trend among baby boomers who fir.��� �' understand=cannabis;s relative harmlessness as compared to tobacco and any other pharmaceuticals. ZF With that�surge in demand it could bela.financial challenge for some if they are forced to the retail side of 16-0 the industry. There needs to be a placeforthe small scale person who's not doing this commercially. For some d�abled, their inco e s extreme y limited. He would encourage the Board not to make it too restrictive and the ban on the addition of permitted use seems like we're denying a procedure which is normally alloww d for others. He ould also recommend that someone who might have 5 patients (if allowed by the Stat) would noe in a multi-family complex. RW Tim Gordon, 420 'U'SNIIHowes, operates Medicinal Gardens. He has also been a part of the discussion groups. He'd like to toubKon some issues related to home occupation businesses. When it comes down to it, this is all about being able to care for patients. We're going to see things coming down from the State—patient numbers. He asks that they consider that as they deliberate on zoning changes. He asks that they also consider the real affects of MMD in proximity to places of worship, recreation, etc. Most MMD are not visible. Is the danger of proximity to places of worship, recreational facilities, etc. really relevant? State legislation only mention schools-primary and secondary. Joey Simontal is the co-owner of Abundant Healing at 351 Linden. He'd like to respectfully inquire about a number of things that as a business owner he sees every day. They made their"grow" public knowledge via The Coloradoan a few days ago. They have been to several City offices in an attempt to 6 Planning &Zoning Board February 18, 2010 Page 7 become the model for dispensaries in Larimer County. They are trying to contract for services with Poudre Valley Hospice and Poudre Valley Hospital Systems. One area of concern is their ability to sell to people who are not their patients—that's a gray area currently. Also, in speaking to their attorney's today there seems to be a gray area in terms of purchasing inventory from wholesalers. He can't understand the need or the motivation in terms of controlling patient count. Does anybody control a doctor's patient count? Is it necessary? He also wanted the Board to know that their demographic are primarily elderly with fibromyalgia who can barely make it to their door. He invited the Board to visit their business to see what they have to offer before they are "judged" In terms of"grows"; they are finding that people are regretting coming out in public. They want to be proper and now �e!rre talking about"millions of grows" if we're talking about limiting it to just 5 or 6 plants. If you're goingfto pursue that, can they have some legislation/some outlines for grow cooperatives in an effort twminimize impact? Finally, he would hope that the people who have come out are not forced undergro dtand that we are not taking a step backward. End of Public Input f Board Questions J Member Schmidt said in reference to the comments relateddo medicalsmarijuana not being like pharmacies. Are there statistics or data on crime related fo F Colls?isn't part of the oncern related to the idea that there's a lot of cash and there are concerns reI ted=to break-ins? Was that part of the reasoning for some of the guidelines? Cpt. Schiager said the cri_eproblems they've seen are related to home invasions at night when people are tfie-re�—they tie them up,t k heir money and their marijuana. He's seen 6 cases in the last year. It's a very£-=o eerning trend and that=s.one of the reasons that residential areas are not the proper place for this type�of businesses. S alter said with regard to - burglaries in commercial areas there are better security=measures—theris no one sleeping there, product and cash are secured, and the alarm is tripped. 0 f Member Carpenter asked this happeens more wit larger operations. Schiager said a grow that can support 5 patients is a pretty good size grow-30 plants have a pretty high yield as far as marijuana on site and the potential p or fi for that. They tried to determine the appropriate threshold for where regulation should start S h ager said o_ne of the challenges for law enforcement is there's a lot of marijuana grown under the protective=umbrella of Amendment 20 that is not necessarily going to patients—it's be n"g�d on the streets or shipped o_uPof state. There's no supply chain control as it is with prescr�iptiorrdrugs ft Chair Stover asked ifought was given to non-profit status—give out free medicine to MS patients in Denver. Schiager"said that is actually in HB 10-1284. Its pending before the state and it may change how.-weeaddress this locally. Stockover asked Barnes if there were any implications on zoning related to no p fit. Barnes said the LUC does not distinguish between for-profit and non-profit. The impacts of a business, whateve ype it is, are going to be the same. From a LUC perspective, it really doesn't affect the c acter of the use. Member Schmidt noted th is not reviewing feedback related to distances from places of worship, etc. That'll be in the licensing portion and in the Municipal Code. The City does not have an agricultural or medical zone. She asked staff if there was a particular reason why growing was not allowed outside. Barnes said that was mainly a security concern. He said the growers themselves don't particularly want their grow operation outside. Chair Stockover asked about the definition of care giver. Director Dush said the definition of care giver can be found in Amendment 20. It is not a definition found in the LUC. Member Schmidt asked if there are different types of care givers. Dush said primary care giver is a term used in Amendment 20. It Planning &Zoning Board February 18, 2010 Page 8 outlines what a primary care giver is, how one becomes one, and the protections afforded them under the amendment. Chair Stockover asked if the number of patients was under the purview of the Board. Is it in the licensing? Member Schmidt said she believes it's in the LUC definitions. Dush said that's the exemption of what is not a MMD so in the LUC we are not identifying any provisions relative to the number of patients except for the exception to the MMD. Member Carpenter asked if that is something the Board could change. Member Schmidt said if the House bills passes and they say you are not a dispensary if you are only serving 5 patients, would we be considering that change here?-Schiager said HB 10-1284 was introduced last week. He doesn't know where it is this week. It basically says you can be a primary care giver for up to 5 people. If you go above that, you need to be in anon profit dispensary model. As far as the timeframe, if approved the laws could be in effect by Jul Om10 Member Schmidt noted Cpt. Schiager use of the term of non-profit.. there a id fferent definition for a profit dispensary? She asked if you are taking care of 5 patients or>less you can �care of it in a house grow situation. Schiager said he did not believe it specifically addressed where th`e?ultivvation could occur. Schmidt asked if you could help up to 5 patients,w pout being a business. Schiager said the term dispensary does not appear in Amendment 20 alkit—talks about s patients, primary care givers and physicians. The term dispensary has grown to a retail typeW del--._that�some argue wa�sFnot intended 410 by the original amendment. HB 10-1284 deals with primary caregiver for 5 people or less and "medical marijuana center' is how it refers to the non-profit model -- Chair Stockover said we are not limiting the number of patients in a dispensary. We do not have anything in our LUC that caps the number of patientsm-Director Dush said not for a dispensary. Member Carpenter asked about the exception.D rectoridshe spoke with Deputy Attorney VA Eckman and the way that the definition is listed in theLUC, the Planning &Zoning Board has the ability to make a recommendatio wmodiy the definition as proposed. (He said Cpt. Schiager spoke earlier d n about volume—that wae of the reasons the definition is being proposed as is. Carpenter said that if the Board should rai sesthaaOnnumber t 5, would they not be required to be licensed as a dispensary and it would it not be a part of the%public record. Director Dush confirmed that if the Board recommended a change from 1 to 5; it would sfil not on deerreedd a dispensary as it is currently written. However, it would raise some=issues relative to what the`impacwts would be. Deputy Attorney Eckmandsad�that s.a question in his mind as to how many people would it take to manife t to a home occupat on. Member Carpenter asked if we limit the number of people allowed for the home occupation of a hair--<dresser or chiropractor. Barnes said no, they only have to provide adequate parking to accommodate the needs of the business. We do have limits for music teachers—if you have more-sthan 5 people there at a time, you'd have building code issues. Barnes confirmed they are a home occ pation "right aw y" if they have 1 client. y'0needed to vote on the recommendations as one motion or can they do it Member Schmidt:%keRdiflifithel w per topic. Eckman said if you sense you are not in agreement on all aspects of the recommendation, it might be helpful for CitwCouncil to know. He said rather than reject the whole; Council would like to know your recommendation as to the parts. Member Smith said with regard to home occupation limitations and parking, it seems the level of neighborhood complaints ultimately determine whether they are providing enough on-site parking. Is it correct that currently their home occupation license can be administratively revoked? Barnes said it couldn't be revoked because we currently don't have that provision in the home occupation ordinance— that is one of the housekeeping items staff is proposing. Currently we ask them to add parking or modify operations to get back into compliance. If they do not correct violations, they would be cited. The 8 Planning &Zoning Board February 18, 2010 Page 9 citation is a Municipal Court summons. Their case is heard before the Municipal Court Judge and a fine could be levied. Member Schmidt said as a point of the discussion she does not feel comfortable having dispensaries as home occupations. She is concerned about meeting the needs of people who are using a delivery model without requiring them to have a store-front. If the provision/definition is between 1 and 5 patients in a delivery mode, you wouldn't have traffic to their home but you'd be providing the service to those patients with limited mobility--it's important to provide that. She wouldn't feel comfortable having 5 patients coming to a home. With the surge of requests, it would create a large demandand leave neighborhoods pretty vulnerable to the impacts. She asked the Board for their feedback. Member Campana spoke of the quantity of yield per plant. Schiager said=fin a 12 week cycle, you could get % pound per plant so if you extrapolate that over a year, you could pro du 1 % pounds per plant. The market value wholesale is $3,000-$4,000; retail sold at % oozz,quantities is-$7 000-$8,000. Campana was considering how many plants would be in a home if you produced for 6 patients=you have $70,000- $80,000 worth of marijuana at my neighbor's home. He wouldn't t someone kno ing that and breaking in to get to that inventory. He would rather se�e=it�in an industrial zone safeIy-seecured,and away from his family. He has an issue with increasing it abovey1tadditionarperson. Chair Stockover said with any business there's risk and reward dgsoe type of investment. Hopefully you'll make a profit. The issues are for the people want to do business on a very small scale. If I cannot buy from the very small operation which gives=me very good pers nalservice and delivery; I still have the ability to get on the computer or phone and se�ek'out one of the more main stream dispensaries to get my medicine. There is nothing in the proposed zornng tinge that really affects>f�ee trade. It will be a hard decision but he's leaning toward not excluding those seeking�the service When you look at the ability to lower your cost by your selection of the number ofpatients you'serve;vfixed costs go down with volume. Are we looking at this from a monetary standpoint of how to make Rmore profitable for the small dispensaries or do we Iook:at=it s orawhat's best fog the neighborhood. He thinks they need to look at it from what's best for the_general publitk Member Schmidt wondered;3from feedback during the outreach sessions how prevalent is the delivery mode. Do storefronts also offe a ery dttruly anxoption for people who cannot get supplies from the smaller ope ator?Sawyer sa dthere are'ptimary�care givers in dispensaries that are working with their patients---,-,and provi�n elivery ice. There are currently many models operating on a delivery system some with home-occupation license and possibly with a sales tax license. Mernberl reenter asked if theEregulation of allowing non-MMDs to have a maximum of 12 plants would be per add e�Sawyer said pedwelling unit. She said we're trying to have more protection for residential areaslMember Schmidt said if three adults were living in a household and they each had their card where they°uld grow 6 pl rants each; you're saying that rather than 18 plants we're limiting residential growth to riplants?rMember Schmidt asked if we'd be violating Amendment 20. Schiager F X said what we're doinglissaying where they can do their growing. As an alternative they could join a coop, rent a warehouse, and grow what they need there. Because of the safety concerns, wed like to limit the number of plantsgin a neighborhood. Chair Stockover asked about "coop." Schiager said it's not really a defined term. All he's saying is if several smaller scale caregivers wanted to get together and rent an industrial building to do their growing at a particular location, they could. It would be in the proper area to reduce security concerns. Dush said that gets to a question raised by an audience member about having to set up multiple grows and the question about the zone districts. Dispensaries are allowed in a number of commercial zones. Grows because of their land use impacts are limited to the industrial zone. If a number of individuals wanted to get together and form a cooperative, they could locate it in an appropriate Industrial zone district. 9 Planning &Zoning Board February 18, 2010 Page 10 Eckman said there was one lady who said she cannot rent commercial space, it'd be too expensive because she gives her product away. Would it be possible to have a coop dispensary? For a lower price you could rent a cubicle and make your sales there. It could work for the small provider who would not be allowed to do it as a home occupation business. Schiager said it could be possible. Staff is still talking about physical separation and defining the premises of each dispensary. One of the things they do envision is that a "dispensary" as an entity and could have multiple care givers working out of the dispensary. They would go through the licensing process as a coop as an entity. In Amendment 20 the dispensary is not an entity; it has to be a person's name. It's the important link�between the patient, the primary care giver, and the grower. It has to be done by the people who ar named in that relationship. It could occur where there are multiple care givers working out of that same retail space. Chair Stockover asked if we currently have a number of"non-confocmid gsaries operating in what is not a recommended zone district Barnes said yes. Stockover asked what`will`happen to them. Barnes said staff has not quite come to a conclusion on whaNhe recommendation will be as to "grandfathering." At the City Council work session we spoke of delaying that until we�know what the State will be doing. Staff thinks with the licensing process; some business operators rn� not to pay the fees and submit to a background check (effectively going out of business.) Member Lingle said what is being considered is Land Use C andod iable on an ind vi idual basis. Directory Dush asked for specifics. Dush said the way this is se phis it would not go through a Type 1 or a Type 2 review. It would be a basic development review application with the type of criteria normally reviewed through a Type 1 or 2 (outside the r g lar zoning requireme t such as set-backs and things of that nature will be "housed' in the Municipal Codes relates to hours _peration, separations, and those sorts of things). It's not what would normally be defined.as a discret ary zoning action. He's not sure what components would be modifiable. Eckman said=th modification language in the LUC allows for only modification of Article 3-provisions and sorn,ee o the land standards in Article 4. In the Ordinance, Section 1 deals with Art 1, Section 2°deals with Article 3. Barnes said the one in Article 3 is Home Occupation and you really`caann°t get use variances so if we were to modify and allow a home occupation MMD in aalome;,he believes that would be use modification and that would be like an addition of permitted use.NEckman agreed. The other changes are in Article 4—zone district uses and the definitions and those cannot;be modified_!=_ Member Lingle sai d t fthe rationale for what ere doing is speculative because we're trying to get out in front of this thing nobody really knows what the impacts will be, how extensive it might be, and what might happen if our regulations a e t oaax or are too restrictive. What he's hearing from the people lia thatve=testified is there's allkihds of scenarios—people who are very commercial (larger scale) oriented a dit ere are some who are onfthe other extreme serving just a limited number of people and in some cases doinb,it for free. He's hoping if there was a modification process, that somebody could come and present-_a hardship an fsay here's my case, I'd like to change this for myself; here's my rationale. If it doesn'.t sound like they can do that, he's a little more concerned about at the first step being overly restrictiveHe<would prefer to be a little less restrictive, see how it goes, and "beef it up" if we need to as opposed4th'e other way around and causing unforeseen consequences. Member Schmidt said there certainly are a lot of implications to all of this. She's presuming that since dispensaries are allowed in commercial zones, if someone wanted to open a booth at one of the flea markets on the south part of town they could do that because it's in a commercial zone. As far as a limited space requirement, would that work? Barnes said a flea market is like a multi tenant building. There's nothing in the LUC regulations that would restrict that. Schmidt asked if there would be any restrictions to that in the licensing process. Dush said there may be. There needs to be a site plan that identifies the dispensary location in a building. That's a part of the licensing provision—what it looks like and how that's ultimately going to be implemented is not certain at this point. 10 Planning &Zoning Board February 18, 2010 Page 11 Member Schmidt said if we have that idea that people can grow off-site to get away from the home occupation limitations; there is no industrial zone in the south part of town. She said there's nothing from Horsetooth south. Member Schmidt asked given the limitations with regard to home occupation and the proposed limited number of plants in residential areas; if many are flying under the radar. Schiager said there's a lot of that going on right now. He perceives that if you have a firm limit on what can be done in residential areas and you get information or a complaint about some activity that's contrRy to that, you check it out as a Municipal Code violation. It could also be a State violation depending=on whether they have the proper paperwork to demonstrate they are caring for a certain number ofiloatients. Chair Stockover asked about the challenge to enforcement. Schiag'd said°if's'a.huge challenge for enforcement. He said there's a lot of activity out there right now that in the gray�area of Amendment 20 that is not a priority for enforcement at times. One thing weave tied to create hereeiis a legitimate system where people can operate above board...licensed regulated, and carry onNtheir,business of providing medication for their patients while limiting impacts to the community. Member Smith asked if there are any industry associations o elf-eg atiing groups. He2imagines the industry wants to be seen as legitimate with standards that are�pol iced internally. Schiager say he's heard of the proposed creation of those kinds of groups—mostly jlhee Denver area. There are probably people in the audience who can answer that'better than he can. Member Schmidt asked if they knew how they arrivedat 6 plants. If� ient s allowed two ounces per week does the harvest of that number of plants,proviaRP excess? Schiager said that over the course of a year, with the harvest of 6 plants every 6 weeks youwwoul grow potentially have 26 pounds of marijuana or one-half pound per%person per week. Hef aid that's obviously much higher than the 2 oz/week limit. Aga � Chair Stockover asked-members ift wanted to m�motions on the separate issues. Members Carpenter and Linglev said they would prefer to evaluate-M&hs separately. ERV Member Carpenter said�she could not supportamotion with the definition of a caregiver with a single patient. Slhe -feeling;l -�sM,ember�Lingle does that we don't know where this is going and we are throwing many folks into licensing without owing the ramifications of that. We don't know what the State:is�gomg to do. She tF inks\tthe number i =too low and we are cutting off people who are doing good for otlsrs.�_That is the recommendation that-is really hanging her up. She agrees with Member Campana t0 iit,s not an easy q stion.4,We do need to be protecting our families and our neighborhoo`ds=I�ut we also need_to pay attention to what's happening with State regulations as well. Member Schmidt aid=even if we would change the definition of MMDs with the exception that relates to an individual primary ca a>giver to provide marijuana to a single patient; Code will limit to 12 the total number of plants allowed`i-n% neighborhood. She asked if the Board decided to change that number to 3 or 5, there is still another regulation that said you could only have 12 plants in a residential area. She said let's say you are doing what Ms. Lawson is doing; then she could say I'd have 12 plants in my home but I could serve 5 patients and I don't have to get a license as a dispensary. Would that be the scenario we are creating? Director Dush said before he answers that he'd like to add something to the mix. One of the things he thought of when considering the exemption and not having them as home occupation was under the two fundamental tenets of striking a balance between allowing those individuals to get their medicine while at the same time protecting the health, safety, and welfare of our community in the context of land use and zoning. If we're now considering allowing for an increase in that number, Dush is wondering if that is a home occupation. Previously it was a balance of how to protect the land use issues 11 Planning &Zoning Board February 18, 2010 Page 12 associated with this particular use from the input received from their outreach efforts and the research they've done. By changing it from 1 to 5, it becomes something different than proposed and it is more like a home occupation. Sawyer said what's challenging is when they looked at one person with the potential for one extra—they were thinking about family members, spouses and not people who are running a business. There may be some who are taking care of 5 or fewer but they're not making a living at it. But in fact, if they're serving up to that many people, it starts to look more like a business with a sales tax license and a home occupation license. Where do you draw those lines and how do you ultimately`_�define them? Barnes said a sales tax license is a public record with all the associated security es. Member Carpenter said when we're talking about a coop grow facility,.does a,provider have to have a dispensary on top of that or if they use a delivery mode can the dispensary be el urinated. Dush said the Municipal Code licensing provisions is that there would need tube a.,grow facilitymponent and a dispensary component. That dispensary has to have a physicaiNadd�ess. MembereCt arpenter said we're still making it difficult to have a small patient care operation'-, Dush said what we've t d to do was strike the balance between providing for the patients and at thes`ame time recognize that n eery sort of business or distribution model is necessarily going toa or he regulations we've prop s dr There is always going to be some aspect that is not being addressed=c m�plet l' Sawyer said if the caregiver who had 5 patients was delivering andfnot making a living; if they could serve those 5 patients with no more than 12``plants, they could do t attin the way things are written now. Schiager said not if we say that a dispensary Kdefined as anybody o-provides for more than one patient—they would still have to go through the MM D icen�sing procesnaSchmidt said a dispensary is a property or a structure used to sell, distribute, teansmit Aso technically if they re allowed to have the 12 plants and they choose to give those to someoneelse they .re=nota dispensary. Schiager said the enforcement challenge there is if_someone has their 12 plants, ew probably wouldn't know how many people they are actually providi and he's not sure it'd be a priority to try and figure that out. It keeps things on the scale`that we're-talking about asTfar as the safety of the neighborhoods. They would be classified as a non:D/12 plant operation. Member Schmidt asked whom n�pplies�fo them and and they are seen as a caregiver, is there a specific caregiver associated with each patient�Canthey go to dispensary"b' if they didn't like dispensaw"a' hiag said that s a�=_controversial'issue. When you fill out an application for a patient card, there*/is a space to,filLout for aid@signated care giver. It's not enforced and there's no way for us to find out who that designated re giver i or_if they've changed it along the way. Right now it's unenforces far as people ware visiti g multiple dispensaries. That might also be something that would change--at the State level.:It is notrsomething we can tackle locally. Member Lingle :where he'sjstanding right now is he doesn't see a public safety problem in allowing the continued hom cupation=component. He hasn't been convinced there's a problem. Barnes asked for clarification—are you=speeaking about continuing as a business office only or allow them to store inventory and grow they Lingle said the whole requirement to have a separate retail store front and all of that seems like an extreme burden particularly for the smaller operations. Barnes asked if his concern is that they'd have to have retail store front just because they wouldn't be allowed to use their home as their office. Lingle said no, it's the whole thing about not allowing the sale. Lingle said he would bet that people who use their home as an art studio sell their art there. Barnes said they'd be in violation—they are not allowed to do that. Barnes said a lot of artists sell their art at shows; they will display it in businesses or in a gallery. In photographers' studios you go to have a picture taken and return for the prints—that's incidental sales. 12 Planning &Zoning Board February 18, 2010 Page 13 Member Lingle said if one patient comes to your home for a small bag of marijuana; he doesn't see the problem. Member Schmidt said she sees the problem with being able to have that many plants—having that kind of an inventory. If we've already had 6 burglaries, then she would say it might be an issue. Lingle said what if his neighbor had an art collection worth $80,000. There are the same kind of risks that Member Campana spoke of when expressing concern for his family and his neighborhood. Member Campana asked if a dispensary has a limit as to what they can hold in inventory. Schiager said not under our local regulations. Campana said if they became a home occupation dispensary they could have any amount of inventory on site in their home. Schiager said as far as allocal ordinance that's correct. Campana said that he couldn't disagree with Lingle more when comparing it to an artist's art or a neighbor's art collection—it's completely different. Member Carpenter4 a d limits in inventory could be addressed in the licensing. Member Campana said there are several2th g;you cannot do out of your home—we're not picking on marijuana here tonight. Campana said=he just=doesn't see the hardship. He wants to be fair to everyone across the board. Grows limited todndustrial Zone with none south of Horsetooth does not hold merit from his perspective because=there ra a other use only allowed in Industrial. Land use is about planning and we're planning streets and parking—e erything around that use. If we change that and say you can dispense as much marijuana as you want ou ofyour.home— that wasn't the intent of the design of that neighborhood umber Carpenter said she absol t ly agrees with him as to the amount of marijuana out of your home.NTheereneeds-;to be some limitsV Member Smith used the metaphor of an apple tree. If you have .apple tree and you pass them around; that's different if you plant a few more-trees and now all o a udden you are an orchard. He thinks the economics are going to sort themsel stout with free marke�_t-"forces. Regulation often motivates innovation and competition. In bus negas`K_t e_eware some win eland losers. Some go out because they don't adapt or have the capital. He sa d'so asking it up into pact on the neighborhood- one tree is very different from an orchard and the mpacto a Jot of cars.coming to do business. He said all we're doing is looking at the LUC and neighborhood mpacts How big of an orchard should you have at your house before you go some here else? Member Lingle said aybe there should be some limits but he doesn't see then d to outng ban it. Me b r Carpenter said she could argue this is not retail sales—it's a service. Armbeer Smith maid he thinks it's-;still a medical product. Chair Stockover said it has the potenti EO-be very profitable. If it didn't have the potential for profit we wouldn't have the proliferation of_pa plicatio a_ndseen the need for a moratorium. You're minimizing the effec�tfe neighborhoo�ds Member Schmidt said wi h he-new Citynan-(�Plan Fort Collins) coming up; the word neighborhood is not tgoin ofievrything. Aswe to get i mixed -use with infill, it's just going to be a different scenario. She's,just wondering=ifthat's going to require different provisions in some neighborhoods while not in others 1 may not be a problem to have a dispensary in some of the neighborhoods in the new scheme. She aiii may not apply to all neighborhoods but on the other hand, she doesn't think you can have something unregulated. Her personal view is as this becomes more accepted, the price will go down—it won't be suclh -=profile, profitable commodity. Chair Stockover said weFeed a starting point. Member Smith said it's very difficult for the Board to speculate on the economics of it; we're not really allowed to get into the economics of it too much. He gets a sense from listening to folks in the industry is they are not looking for preferential treatment—they're looking for equal treatment and to be regarded as a business with the same rights and responsibilities. Because of precedence set with MMD home occupation, the way they are operating in the neighborhoods and the impact it has on their neighbors; that's the focus he's taking. He's really neutral to the product or whether it's new or evolving. 13 Planning &Zoning Board February 18, 2010 Page 14 Member Schmidt asked if the twelve allowed plants would be outlined in the Municipal Code as part of the licensing. That could be the guideline set and we wouldn't have to totally outlaw home occupation as a viable vehicle. Sawyer said she did misspeak earlier because as the ordinance is proposed now, if you did care for more than one other patient, you would need to get a license. We are limiting it to no more than 12 plants in residential areas. She said that needs to fit in with Amendment 20 guidelines—two patients' allowance comes up to 12 plants. Sawyer said if you have a home occupation license because you care for than one patient and you have a delivery model; we still don't want any cultivation (not even that limit of 12) or inventory on site because the home occupation license is public record and that gets to the safety issues. Member Lingle said if you're growing just for yourself and maybe up to on other person, you could have 12 plants. Sawyer said for yourself you could have 6 plants. If you wee a growing for yourself and one other person, you could have 12 plants. Member Cam ana said in the case of a mixed use building- if ou ,commer�cia on the 1'�floor and residential on the 2nd or Td floor, nothing would prevent a me cal marijuana dispensary there. Is that correct? Barnes said it would have to be in a zone that lows MMDs and while the e;ay be separation requirement in the licensing part (MunicipaFQ;od'e); it would.be an allowed use=Member Schmidt said it'd have to be a mixed use building in a commercial zone Barnes said all of he recommended zones allow residential uses and some of the ones even have existing single family detached homes. Member Campana asked if there was a definit f__retail. Barnes dathere'ss one in the LUC for retail establishments. Section 1 —Addition of Permitted Uses Member Schmidt made a motion the Planning &%Z2nihagBto ard commend to City Council Section 1 of the proposed-ordinance that discusses the Addition of Permitted Uses. Member Smith seconde the motion? Member Schmidt said given=the fact that most of the regulations having to do with MMDs will be in licensing in the Municipal Cod she'thinks`it�s.apppropririate to amend the LUC because it wouldn't give the Board the leverage.needed%to:add conditions She said that might change at some time in the future but right now hs a°feel p tty comfortable with this hange. The m6tionas approved Chair StockdVer.asked Eckman=for a quick recap on the recommended amendment for Section 2. Eckman said t apt--.ss the issue of f ether or not dispensaries should be allowed as home occupation. Member Lingle sai >currently Ilowed as home occupation. Barnes said that's correct, we've issued dozens of home occupatioo_li enses as MMDs. Assuming they don't have sales on the premises, they don't violate any of the provisions of the home occupation ordinance. As long as they don't have cultivation outside or in a detached building, they're okay. Lingle said that's where he's having the heartburn—he's assuming that those sales are currently occurring. Barnes is assuming that they are not having clients come to the home. Barnes believes they are currently possibly cultivating, inventorying and delivering product. Barnes said they got almost all of the home occupation license requests right before the moratorium ordinance. Barnes said they've had some complaints from neighbors and landlords (concerned about safety issues in the home.) 14 Planning &Zoning Board February 18, 2010 Page 15 Section 2 — MMDs/Home Occupation Licensing Member Campana made a motion the Planning & Zoning Board recommend to City Council the approval of Section 2 as it's written. Member Schmidt seconded the motion. Member Lingle said he'll not be supporting this motion and he'd like it reflected in the record that it's not because he thinks there should be no limit but that he doesn't think there should be an outright ban. If City Council should deem that they be allowed to continue, there should be some guidelines put in place. Member Carpenter said she's also not supporting it for the same reasons as%Member Lingle. She added if there was some sort of a grace period where we could get past what the to will be doing she'd be more comfortable with it. h Member Schmidt said she has mixed feelings but she feels pretty strongly thawing a cultivation facility should not be allowed with home occupation because of all safety=hazards Member Smith said if this doesn't pass and some of these grandfathered home occupaton/cultivation facilities were to continue; what currently would limit the cale of thaPoperation until that<twozyear period ends? Director Dush said the way the ordinance is set up Ah hhaat if ordinance passed ncluding the LUC and the licensing provisions, there would be a grace penocJ 30, 60, 90 or 120 days at which time home occupations would not have the ability to do any growing"or=dispensing on that site. They could continue as their office of"record" until the e�iration of their license. Smith asked how large could these home occupation/cultivation facilities be. Whatlimits how large they an be until their license expires? Schiager said the limits would be the number of�pa eenntsts t they are the-,primary caregiver for under Amendment 20. He's seen 200 plants on a residentia pro-petty. Barnes.-said the only limiting factor in the home occupation ordinance is that they can't use mor..e tlian 50%o_of.'the floor area of their dwelling. Smith asked if without this, that would be allowed to:co nue.B one`s said correct. Member Carpenter asked for clarification of grace period. Barnes said we don't know what City Council will do. If they approy a grace peso then it won't c t=off right away as Director Dush mentioned. She said that if we recommend to City{council what's written; there is no mention of a grace period. Barnes said the grace period ould:be addressed in the>licensing component. Member Schmidt asked how many-�D home occupation licenses have been approved. Barnes said there were about 40. They-know thatsome of those no longer exist. There may be others that are operate g without a Iicense�Schmidt askeWdawhen you make these new licensing provisions, lets say we decAd`to==keep those that are=licensed would continue to function until the end of their license. Can you make othe provisions...such s they have 200 plants but we want a smaller number? Can we reevaluate at he end of their license period what type of complaints and enforcement issues have arisen? Barnes sa ddf she's suggesting we put a limit on them during the rest of the term of their license; it doesn't addressNthe�fs�afety concerns that staff feel exist with.even a small amount. Chair Stockover said the=other issue is we're not talking about 5t'' generation family farm. We're not taking away someone's�heritage. We are talking about regulating and limiting something that is relatively new. We're doing that because there's a need to do that. Member Schmidt said we're being very restrictive when we don't have very much local data on exactly what the impacts are. She said a compromise might be made available if they choose to continue operating since we have already granted a license. Stockover said in his mind there's too much gray area. There has been a lot of public input with regard to safety concerns. He thinks it's an all or nothing. 15 Planning &Zoning Board February 18, 2010 Page 16 Member Campana said he agrees it would be nice to have data but he'd rather err on the conservative side. If we're too conservative and after two years of data we did not have to be so restrictive, we could back up rather than the opposite. Member Smith said he supports the spirit and intent of what this amendment is prohibiting—dispensaries and cultivation facilities from being home occupations in the near future. All its doing is beginning it now so we don't have two years of uncertainty. If we were creating a class of home occupation businesses that were allowed to have dispensaries or cultivation facilities; he thinks the issue of how we deal with folks that are grandfathered in might be more relevant but since we're going,to be prohibiting dispensaries and cultivation facilities from being in home occupations it makes all4he sense to begin that process now. It allows folks enough time to make that transition into formal store fronts and cultivation facilities that will be allowed in another part of the city. He's going t t es. The vote was split 3:3 with Carpenter, Schmidt and Linglednt mg Deputy City Attorney Eckman said the information of a split vote wilf be conveyed tYiGity Council and that there would not be any recommendation relative to Section 2 of the,ordinance--Section-3�38.3 (10) (h) of the LUC. Member Schmidt said she voted no because she altaoughTse-�db,4s't o ally disagree with the idea, she feels some other compromise needs to be worked out besides what.s proposed in the ordinance. She's not comfortable with the way it's written. She=thinks there could be,0- 6mething tried that would give us better information in two years. Member Carp titer-_agreed and asked at her name be added to what member Schmidt just said. 4�' Chair Stockover said that City Council did talk a lot about=t ork.session. We've shared our feedback. It's in their hands. % Section 3-Revoking Ho Occupation.Licensing if theme License is in Violation m Member Campana made amotion the Planning &Zoning Board recommend to City Council the approval of Section'3 as stwntten Member Schmidt`seconded the motion. Deputy Attorney Eckman said this�tehMangae-d&i�VV-e6��Nh-esz�Director the ability to revoke a home occupation license if�t�heysare=m-violt�f an.y of the provisions contained in subsections (1) through (8) or 10 (h). Themo�tlorn was approved-6.0. Sections 4-11 Amendment to gnu rious zones Member Linglesaid the reason 1they are separating the dispensary from the grow facility is because the dispensary is licensed and publicnformation and the grow facility is not and there is a desire to keep that information privateSchiageraid yes. We've tried to accommodate the industry by having a confidential (non-public)=location for the cultivation that would be separate from the retail operation. Lingle asked if people wh-p' rticipated in the public outreach agreed with that. Schiager said yes. Lingle said he doesn't have a problem with that he just wanted to understand and be sure. Member Smith said staff did a great job with this. It' accommodates and fits well with the LUC. He's voting yes on this. Member Smith made a motion the Planning &Zoning Board recommend to City Council the adoption of Sections 4-11 of the proposed ordinance that relates to zone districts where dispensaries and cultivation facilities can operate. Member Campana seconded the motion. 16 Planning &Zoning Board February 18, 2010 Page 17 The motion was approved 6:0. Section 12 Definitions Deputy City Attorney Eckman said one definition of a cultivation facility and the other is a definition of a dispensary. Member Lingle said his problem is the word single patient and whether that's the appropriate limitation in the exception. But quite frankly he does not know what the appropriate number should be. Member Campana a motion the Planning &Zoning Board recommennd.ofy,Council the approval of Section 12, definitions of a medical marijuana cultivattion'facility and dispensary. Member Smith seconded the motion. Member Schmidt asked if we even need that. It reads ...except those properties'or structures that are used by an individual primary caregiver to provide marijuana to:a si gle patient�someone going to have a dispensary for a single patient? What if you just had the period after adminissotrative regulations so we don't have a number? Barnes said if you don't have:th t exception then the prim -caregiver to a single patient would be a MMD. Eckman said even the g w your own" person would 05MMD. Barnes said we're "excepting" them out. If you don't include=thhat exception, than they area MMD and they have to be licensed, have background checks, etc. Schmiidt_said she thought Amendment 20 allowed a caregiver to have 6 plants for themselves. Schiager saidl,�yes unless a physician's recommendation is for more. Member Schmidt said in Fort Collins we woulda erson to rovide for one person themselves or P P P t for a single patient) and in which case they'd have up to sixp.lants. Member Carpenter said she's�not.going to support itt bbuPnot becausershe has any problem with it except for"single patient." She'd Wei ity�Co�uncil to take a=_Kook. Like Member Lingle she doesn't know what the right number is but sh doesn'Plike-the idea that we seem to be pushing this to either it needs to be a big business or it's not=going to be all bled to happen Member Lingle would concur with that. The motion was apprve od-42:with�penter and Lingle dissenting. Other Business: = None..,- Meeting ado ned at 9:05 p.m Steve Dush, CDNS Director Butch Stockover, Chair 17 City Of ATTACHMENT 12 Fort Collins Memorandum DT: February 11, 2010 TO: Mayor and City Councilmembers TH: Darin Atteberry, City Manager FR: Ginny Sawyer,Neighborhood Administrator MMD Staff Team RE: Work Session Summary-February 9, 2010 re: Proposed Medical Marijuana Regulations On February 9, 2010, City Council held a Work Session to discuss proposed regulations for medical marijuana dispensaries (MMDs.) All Council Members were present except Aislinn Kottwitz. Staff members included Steve Roy, Teresa Ablao, Jerry Schiager, Steve Dush, Peter Barnes, and Ginny Sawyer. Staff presented proposed regulations that encompass licensing, retail operations, zoning and grandfathering considerations, separations requirements, and cultivation limitations. Staff was asking Council if they had any concerns regarding the regulations and which of three grandfathering options they wished to pursue. Council agreed to proceed with proposed regulations with the following changes/clarifications: • Accommodate entry into MMDs by disabled patients or primary caregivers who need the assistance of a person who does not have a state registry card or its equivalent. • Extend the prohibition of false and misleading advertising from fliers only to all forms of advertising. With regard to the grandfathering options, a majority of Council requested bringing forward Option C. Under this option, all.of the proposed regulations would take effect immediately except that the new location requirements will not apply to existing MMDs for a certain period of time (e.g., 120 days). Prior to the expiration of that period, the Council will determine by ordinance whether to impose those location requirements on MMDs that were established prior to the effective date of the moratorium ordinance. The purpose of the delay is to determine two things: a. whether the City's other MMD regulations and any new state laws significantly reduce the number of existing MMDs that do not meet the location requirements; and b. how harmful it would be to grandfather those that are left. Staff will also provide a map identifying areas where MMDs would be allowed. Next Steps 0 First reading of an ordinance is scheduled for March 2, 2010. ATTACHMENT 13 IJ I1JJ Ili] .. 1rJJ !J 1 �l r' J !JI] �J tJ Gen e Protect the • • safety and welfare , as wellthe rights • patients • their primary caregivers , while discouraging the unlawful use • distribution of Ot O nce C o MMD licensing components Zoning regulations Separation requirements Retail operation requirements Cultivation limitations City of 3 tr Definitions A medical marijuana business is a primary caregiver or caregivers who provide medical marijuana for more than one patient . Includes dispensaries , cultivation facilities and/or delivery services . License required . Individual patients or primary caregivers with only one patient are not a medical marijuana business . No license required . Frc "s 4 Application fee and annual renewal fee . Fees are intended to cover staff costs including application processing , zoning review , building inspection , compliance checks , etc . Olt thns 5 Licensing Components Background check of applicant , designated manager , and all interest holders . orr tyiColhns 6 Licensing Co No license issued to anyone : - who has been convicted of a felony or any crime involving fraud , or distribution of a controlled substance within the last 10 years ; - who has had a medical marijuana business license revoked ; or - who has submitted fraudulent application information . �t�l=5 Licensing Components Applicant must be 21 or over . No more than three licenses per person or entity . Inspection of proposed licensed premises for compliance with Building and Fire Codes . or Collins 8 Location Requirements MMDs allowed in D , RDR , CC , CCN , CCR , and CS zones . Cultivation facilities allowed in I - Industrial zone . Existing home occupation MMDs limited to offices only , with no on -site sales , no indoor or outdoor cultivation and no inventory . Olt Locequire Require 1 , 000 foot separation between MMDs and schools , places of worship , day care centers , halfway houses , recreational facilities , parks , or other MMDs . Ctrs 10 Dispensary Regulations Allow the on -site sale of marijuana , including starter plants and seeds , food , paraphernalia and other products . Allow sales only to patients and primary- givers with one patient . Limit quantities to two ounces per week . ins 11 Disp egulations Only allow people with state registry cards or equivalent, persons whose assistance is necessary , and certain others to enter a dispensary . Food products containing marijuana must contain warning labels and , if not inspected by State or County Health Department , must also contain a statement to that effect . t �s 12 Dispens No on -site consumption of marijuana . No on -site cultivation of flowering marijuana plants . Security requirements such as safes and video cameras . ctY or 13 F�tS Dispensary Regulations Hours of operation between 8AM and 8PM only . Licensed premises including books and records subject to inspection by City officials to ensure Foctryi "S 14 Dispens Enforce applicable sign code requirements and require use of the term " medical " if the word marijuana or equivalent symbols are used . Prohibit distribution of advertising fliers that contain false or misleading information or that invite illegal activity . ctY or 15 F�tS Dispensary Regulations Impose record keeping requirements showing each transaction to ensure compliance with regulations F8tryiCollins 16 Local cultivation facilities must be located in the I - Industrial zone . No outdoor cultivation allowed . No on -site consumption or sales allowed . Foc tlin5 17 imitations Cultivation facility must be operated by the licensee or an employed primary caregiver . No signs that indicate that medical marijuana is being grown at that location . Location not public record . Frt �s 18 Culti imitations in Resi en ial Areas Existing Home Occupation MMDs are not allowed to grow marijuana or maintain inventory in residential areas . Home Occupation licenses would not be renewed at the end of the expiration date . c or tolls 19 Cult' 111WWW i ilk n KeMUErriUMISWM Individual patients and Primary Caregivers for only one person ( non MMDs ) can grow no more than 12 marijuana plants with no more than 6 mature plants . All growing must be indoors . No patient or caregiver may have more plants than they are entitled to under Amendment 20 �t Collins 20 1 Public Outre Individual meetings Focus groups Community Open House Collected emails and comments 21 try" Implementation of Re Iations No licensing applications will be accepted for NEW marijuana businesses until Council decides whether to grandfather existing businesses . Fort Collins 22 KIM e ion of Regulations Existing businesses established before effective date of ordinance will have until April 30 , 2010 , to apply for license . Those existing businesses that fail to apply before April 30 , 2010 , will have to cease operations until Council decides when , if at all , new businesses can apply . tolls 23 Implementation of Regulations Persons applying for license for existing businesses will have to pay application fee ( presently estimated at $ 500 ) . Applications have to be in same name as sales tax license . Those that apply for new location and are approved will have to meet all requirements of Land Use Code . �F``orYt ns 24 e ex�a-_ion of Regulations Existing business that fail to meet any new licensing requirement EXCEPT the location requirements will have to cease operations . Existing businesses that meet all new licensing requirements ( not including location requirements ) will be issued provisional license until Council decision is made regarding grandfathering . tolls 25 Implementation of Regulations If businesses established before effective date of ordinance are grandfathered , provisional license will be replaced with regular license upon payment of annual license fee ( presently estimated at $700 ) . If they are not grandfathered , provisional license will be revoked and business operations will have to cease . aty or ort C011lns 26 tathonulations After receiving recommendation from City Manager, Council will decide whether and when to allow new businesses to apply for a license . tolls 27 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 DISPENSARIES WHEREAS , on November 7 , 2000, the voters of the 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 staff has, 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 - 1 - 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 locally implement the provisions of 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. The provisions of this Article are intended to implement the provisions of Article XVIII, Section 14 of the Colorado Constitution and protect the rights of patients and their primary caregivers while also protecting the health, safety, and welfare of the public and curtailing the unlawful possession, use, distribution, or transportation of marijuana 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 of medical marijuana dispensaries and cultivation facilities . Sec . 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: - 2 - Alcohol beverage shall have the meaning ascribed to such term in the Colorado Liquor Code. 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 the Code. Cultivation shall mean the process by which a person grows a marijuana plant. Financial interest shall mean an ownership interest, a creditor interest, or a directorship or officership. 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 cultivation facility, or an ongoing nuisance condition emanating - 3 - 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, chronic or debilitating diseases such as seizures, severe pain, severe nausea, persistent muscle spasms and epilepsy. Medical mar�uana 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 mar�uana 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 to the Colorado Constitution and the implementing state statutes and administrative regulations . Medical mary*uana paraphernalia or paraphernalia shall mean devices, contrivances, instruments and paraphernalia for inhaling or otherwise consuming - 4 - medical marijuana, including, but not limited to, rolling papers, related tools, water pipes and vaporizers . 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 or rooms used for the purpose of conducting religious services or meetings of the occupants of such structure . Premises shall mean the legal 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 state 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 the same parcel of property, 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. (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 non-refundable application fee to defray the costs incurred by the City for fingerprints, photographs, background investigations, inspection of the proposed premises, and other costs associated with the processing of the application. In addition, the applicant shall provide the following information on a form provided by the City, which information shall be required for the applicant, the proposed manager of the medical marijuana business, and all persons having a financial interest in the medical marijuana business that is the subject of the application: ( 1 ) name, address, date of birth; (2) a complete set of fingerprints; (3 ) an acknowledgement and consent that the City will conduct a background investigation, including a criminal history check; (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 any facilities of such business that 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 - 6 - 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 -462 ; 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; and 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 . ( 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 . - 7 - (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. 15-454. 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 or cultivation facility shall, at the time it is established and first licensed by the City, be located: a. within one thousand ( 1 ,000) feet of. 1 . any private or public preschool, elementary, secondary, vocational or trade school, college, university or childcare facility; 2 . any place of worship or religious assembly; 3 any public or private park, pool, playground or recreational facility; 4 any juvenile or adult halfway house, correctional facility, or substance abuse rehabilitation or treatment center; or 5 the boundary of any RUL, UE, RF, RL, LMN, MMN, NCL, NCM, NCB or HMN residential zone district. b, upon any City property, or; - 8 - c. 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 . (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 Subsection (a) above to the nearest portion of the building or unit in which the medical marijuana dispensary or cultivation facility is located. Sec. 15455. 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 this 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; (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; - 9 - (8) any peace officer as defined in C .R. S . § 16-2 . 5 - 101 or family member of a peace officer; (9) any applicant who already holds three (3 ) medical marijuana business licenses in the City. Sec. 15456. Duration of license ; renewal. 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. 15 458 . 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 -474 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. 15459. Use and display of license ; management of licensed premises. (a) A license shall not be transferable to another person. (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 . (c) Each license shall be continuously posted in a conspicuous location at the medical marijuana dispensary and at the cultivation facility. (d) 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 Subsection 15 -455 (a)(2) • - 10 - Sec. 15459. 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 . (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 ( 10) percent of the stock in any one 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 § 15 -455 (a)(2) . Sec. 15460. Hours of operation . Medical marijuana dispensaries may be open for business only between the hours of 8 : 00 a.m. and 8 : 00 p .m. Sec. 15461 . 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," "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. 15462. 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. - 11 - (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 the City 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. 15-463 . 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; (2) the possession, use or distribution of marijuana for non-medical 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. 15-464. 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 non-flowering 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. - 12 - Sec. 15465. 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 non- medical 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 health department inspection. Sec. 15-466. 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 re-sale or re- distribution of the marijuana to any person other than a patient or primary caregiver is a criminal violation. Sec . 15467. 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. 15468. 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 Subsection 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 per week of any usable form of medical marijuana. (4) purchase or otherwise obtain more than two (2) ounces per week of medical marijuana in any usable form from other dispensaries or cultivation facilities or any other source; - 13 - (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 is 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; or (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; (7) permit the sale or consumption of alcohol beverages on the licensed premises; (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. - 14 - Sec. 15469. 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. 15-470. 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. 15-471 . 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 make such deliveries only to patients and primary caregivers and only in the amounts specified in § 15 -468(3 ) . All such deliveries shall be subject to the record keeping requirements contained in § 15 -473 . Sec. 15-472. 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. Sec. 15-473 . 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 : - 15 - ( 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. 15-474. 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 be 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. 15-475. Non-renewal, suspension, or revocation of license. The City Manager may suspend, revoke, or refuse to renew a license for good cause . A determination by the City Manager of non-renewal, suspension or revocation shall not be subject to administrative review but only to review by a court of competent jurisdiction. Sec. 15-476. Violations and penalties. In addition to the possible denial, suspension, revocation or non-renewal 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 . Sec. 15-477. No City liability; indemnification. By accepting a license issued pursuant to this Article, the licensee waives and releases the City, its officers, elected officials, employees, attorneys and agents from any liability for injuries, damages or liabilities of any kind that result - 17 - from any arrest or prosecution of dispensary owners, operators, employees, clients or customers for a violation of state or federal laws, rules or regulations . By accepting a license issued pursuant to this Article, the licensee(s) 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 which arise out of or are in any manner connected with the operation of the medical marijuana business that is the subject of the license . Sec. 15-478. Other laws remain applicable. 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 non-compliance with any applicable state law or regulation shall be grounds for revocation of suspension of any license issued hereunder. 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 is in full compliance with any applicable state law or regulation. 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. 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. 15-479. 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 the legislative intent that this Article shall stand - 18 - 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 8 (b) below, no application for approval of a medical marijuana business in the City shall be accepted by the City except applications for the licensing of medical marijuana businesses that were established in the City and that commenced operations on or before the effective date of this Ordinance . Section 4 . That any owner or operator of a medical marijuana business that was established and commenced operations in the City prior to the effective date of this Ordinance shall, on or before April 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 zoning requirements contained in Ordinance No. 026, 2010, and, if the 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 such a medical marijuana business in the City who fails to submit an application as required in Section 4 above, on or before April 30, 2010, shall, as of 12 : 00 a.m. on May 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 a 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, 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 medical marijuana business that was established and commenced operations in the City on or before the effective date of this Ordinance and 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 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 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 medical marijuana business for which a particular provisional license has been issued shall be permitted to remain in operation in its current location. All 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 the City Manager is hereby directed to present for the City Council's consideration, on or before August 1 , 2010, recommendations as to the following : a. whether to make the above referenced location requirements applicable to medical marijuana businesses that were established and commenced operations before the effective date of this Ordinance ; and b . when, if at all, the City should begin accepting applications for medical marijuana businesses that were not established and in operation on or before the effective date of this Ordinance . Section 9 . The knowing failure to cease operation of a 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. 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 , Mayor ATTEST : City Clerk - 20 - Passed and adopted on final reading on the 16th day of March, A.D . 2010 . Mayor ATTEST : City Clerk - 21 - ORDINANCE NO , 0265 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING AMENDMENTS TO THE CITY LAND USE CODE RELATING TO MEDICAL MARIJUANA WHEREAS, on March 18 , 19971 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 (56) and (67) 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. (56) 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 ; (67) 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 dispensaries or medical marijuana cultivation facilities, except that those dispensaries 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 and further provided that there is no cultivation of marijuana plants on the premises . Section 3 . That Section 3 . 8 . 3 ( 11 ) of the Land Use Code is hereby amended to read as follows : ( 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 2 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 C . COMMERCIAL/RETAIL 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 : (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 (f) which reads in its entirety as follows : 3 (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 (f) 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 (f) 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 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 to the Colorado Constitution and the implementing state statutes and administrative regulations . 4 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 , Mayor ATTEST : City Clerk Passed and adopted on final reading on the 16th day of March, A . D . 2010 . Mayor ATTEST : City Clerk 5