AGENDA ITEM: 4. DATE: 07-17-17 STAFF REPORT CONDITIONAL USE PERMIT NO. 17-13 DATE: TO: FROM: APPLICANT: LOCATION: REQUEST: Lancaster Planning Commission Planning Section, Community Development Division Development Services Department High Desert Cultivation Center, LLC 44211 Yucca Avenue A conditional use permit to operate a medical cannabis cultivation facility within an existing building in the Light Industrial (LI) zone with a distance requirement waiver RECOMMENDATION: Adopt Resolution No. 17-22 approving. BACKGROUND: On October 9, 2015, Governor Brown signed into law the Medical Marijuana Regulation and Safety Act (MMRSA), which went into effect on January 1, 2016. MMRSA established a comprehensive State licensing and regulatory framework for the cultivation, manufacture, transportation, testing, storage, distribution, and sale of medical cannabis through Assembly Bills (AB) 243 and 266 and Senate Bill (SB) 643. On February 28, 2017, City Council approved the Medical Cannabis Cultivation Facilities Ordinance No. 1019, adding Chapters 5.56 and 17.43 to the Lancaster Municipal Code (LMC), relating to the regulation of medical cannabis. This ordinance went into effect on March 30, 2017. The ordinance allows for medical cannabis cultivation and manufacturing facilities within the City limits based upon approval of a local license and contingent on approval of a conditional use permit in the LI zone, Heavy Industrial (HI) zone, or any adopted specific plan that permits industrial use. A cannabis cultivation facility means and includes a cannabis manufacturing facility, as well as, any facility wherein cannabis is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking or trimmed, or that does all or any combination of those activities (LMC 17.43.030). GENERAL PLAN DESIGNATION, EXISTING ZONING AND LAND USE: The subject property is designated LI by the General Plan and zoned LI. The General Plan designation, zoning, and land use of the surrounding properties are as follows:
PC Staff Report Page 2 GENERAL PLAN ZONING LAND USE NORTH LI LI Vacant EAST LI LI Auto Repair/Church SOUTH LI LI Service Station WEST LI LI Vacant PUBLIC IMPROVEMENTS: The project site is served by Yucca Avenue and Avenue J-5, which are both improved with one lane of travel in each direction. All utilities are available to serve the site. ENVIRONMENTAL REVIEW: The project is exempt from the California Environmental Quality Act (CEQA) under Class 1, Section 15301 (Existing Facilities) of the State CEQA Guidelines. This section states that existing facilities shall be exempt from the provisions of CEQA, when it involves the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency s determination. Staff has determined that the exemption applies in this case because the conditional use permit will merely permit operation of a medical cannabis cultivation facility in an existing structure or facility and will involve negligible or no expansion of use. LEGAL NOTICE: Notice of Public Hearing was mailed to all property owners within a 500-foot radius of the project, posted in three places, posted on the subject property, and noticed in the newspaper of general circulation, per prescribed procedure. ANALYSIS: High Desert Cultivation Center, LLC is proposing to convert a 19,520-square-foot vacant building into a medical cannabis cultivation facility. The facility would consist of approximately 16,658 square feet for cultivation related activities. The remainder of the facility would be utilized for ancillary purposes such as offices, bathroom, breakroom, security room, and storage room. Medical cannabis grown at the site would be harvested, packaged, and shipped to off-site locations (licensed medical cannabis testing facilities, dispensaries, etc.) located outside of the City. The operation would be conducted in a negative pressure environment to preclude escape of any odors or unfiltered air. A negative pressure environment is a ventilation system that generates negative pressure to allow air to flow into the room, but not escape from the room, as air will naturally flow from areas with higher pressure to areas with lower pressure. The building will not be open to the public and the facility will be gated and secured. There will be deliveries to and shipments from the facility during normal business hours Monday through Friday. Deliveries and pick-ups will take place from standard sized doors, as only one pallet of product would be picked-up every two weeks. Roll-up doors would be for equipment repair and replacement use only. All medical cannabis growing and harvesting operations, including storage of any waste materials, would occur within the building.
PC Staff Report Page 3 Lancaster Municipal Code and General Plan Compliance The proposed project is consistent with the existing general plan and zoning designation of LI. The proposed facility would operate within an existing building and there would be no exterior changes or addition of square footage. Additional lighting and security cameras would be added to the outside of the building. The project complies with all applicable development standards and guidelines including, but not limited to, lot dimension, building height, and setbacks, as the building was previously approved and permitted. While the existing building is in compliance with the LMC, the proposed medical cannabis cultivation facility use requires the approval of a conditional use permit by the Planning Commission. Goal 18 of the General Plan emphasizes to manage development by planning the location and intensity of urban and rural uses to create a comprehensive structure. The proposed project helps achieve this goal because it is compatible with adjacent proposed land uses, surrounding development, (and) existing infrastructure (General Plan Policy 18.1.3). The adjacent uses consist of Walsma Oil Company, numerous auto repair shops, Metro Floors, and an unpermitted church. The proposed project encourages appropriate development to locate so that municipal services can be efficiently provided (General Plan Policy 18.2.2). The proposed project would comply with all City standards including, but not limited to, the zoning code, building code, and business licenses and regulations. Compliance with codes and regulation are a vital part of the City running efficiently. The proposed project would also ensure an appropriately quiet environment because operations of the facility would be conducted indoors, all mechanical equipment would be fully enclosed, and the use shall comply with City s noise standards. This helps achieve Policy 4.3.1(h), ensuring that new commercial and industrial activities are designed so that activities comply with the maximum noise level standards at the property line of adjacent uses, thereby minimizing impacts on adjacent uses (General Plan Policy 4.3.1(h)). Overall, the proposed project is in an area that is compatible with the surrounding uses and would not affect neighboring properties. Medical cannabis cultivation facilities are a recently allowed use within the State of California and the proposed project would be the first medical cannabis cultivation facility within the City. This project has the potential to create jobs and to generate additional City revenue, in accordance with the adopted ordinance. While the project meets all development standards and promotes the goals and objectives of the General Plan, Staff is recommending conditions to be added to improve the project. These conditions will include repaving and restriping of the parking lot, new landscaping, Americans with Disabilities Act accessibility, and compliance with Los Angeles County Fire Department requirements. Staff has investigated the information submitted with the applications for a conditional use permit and a local license, as required pursuant to Section 17.43.070.C of the LMC, and has determined that the applicant has submitted all required application components (as set forth in Section 17.43.070.B) and that the proposed facility complies with the requirements of Chapters 17.43 and 5.56 of the LMC, and all other applicable state and local laws and regulations. Prior to commencement of operation of the medical cannabis cultivation facility, City personnel will conduct site inspections to verify that the facility fully complies with the submitted application, all applicable environmental, building, electrical, zoning and fire codes, security requirements, accessibility requirements of the Americans
PC Staff Report Page 4 with Disabilities Act, Chapter 5.56 of the LMC, all other applicable City and state laws and regulations, and any specific, additional operating procedures and measures as may be imposed as conditions of approval in the conditional use permit and/or the local license. Applicant has complied with Section 17.43.070.D of the LMC and all requirements pertinent thereto by providing a signed current form of the Cannabis License Agreement. The applicant has been provisionally approved for a local license, in accordance with the requirements set forth in Chapter 5.56 of the LMC, and said license is ready for issuance upon approval of the conditional use permit. Security The proposed facility would have security lighting and cameras placed on the exterior of the building. There would be a security patrol officer 24 hours a day, seven days a week, and a real time monitored camera system. The proposed facility would not be open to the public, nor provide public parking. Employee parking and delivery vehicles would have access to the parking lot controlled by an eightfoot tall rolling, galvanized steel locking gate. In addition, an eight-foot tall wall with a three-foot wrought iron fence on top would be placed along the side and rear property lines. A detailed security plan was submitted by the applicant and reviewed by the City s Public Safety Office. Based on a review of the security plan, the Public Safety Office issued a memo stating that the plan conforms with the requirements set for in Section 5.56.070(5)(a) through (f), and 17.43.070(B)(11) of the Lancaster Municipal Code, including: video surveillance; alarm system; signage; lighting; commercial-grade locks, and around-the-clock onsite security staff. The plan also proposes certain additional features that in my opinion will enhance security at the facility. A copy of the memo has been attached to this staff report. Separation Distance Requirements The City s Medical Cannabis Cultivation Facilities Ordinance, LMC Section 17.43.110, establishes distance requirements between medical cannabis cultivation facilities and uses identified as sensitive uses. These distances are measured from the corner of the cannabis facility to the nearest property line of the sensitive use. A medical cannabis cultivation facility shall not be located within 600 feet of a religious assembly; residential use or residentially designated property; a public park; or within 1,000 feet of a public or private school, college or university (excluding trade schools), or a day care. The facility is approximately 210 feet away from an unpermitted church and approximately 720 feet away from the University of the Antelope Valley (UAV). Due to the sensitive uses located within the separation requirements established by the LMC, the approval of the conditional use permit would require approval of a waiver. Waiver of Distance Requirement LMC 17.43.110.E contains a provision to allow for a waiver from the normal distance requirements. The waiver requires that two findings be made; first, that the medical cannabis cultivation facility will serve a specific community need; and second, that the distance waiver approved for medical cannabis cultivation facility is not expected to result in an adverse effect on adjacent property, uses, or residents.
PC Staff Report Page 5 A church, Anointed to Minister, is located at 169 Avenue J-5, across the street from the proposed facility. It is within a multi-tenant building, which includes Meece Car Audio, Gary s Auto Stereo, and Montana Capital Car Title Loans. Church services are on Sunday from 9:00 a.m. to 7:00 p.m., and the church is operating without any approvals. Even though the proposed facility would be operating 24 hours, seven days a week, only one technician would be there at all times. Harvesting, trimming, and packaging would occur during normal work hours, three days a week. The only potential effect to the church would be pick-up and delivery times. The pick-up and delivery would be once a week, on Thursday and Friday mornings, when there are no church services. Therefore, the church would not be affected by the proposed use. The University of the Antelope Valley is located at 44055 Sierra Highway and is within 1,000 feet of the proposed project. The proposed facility cannot be readily seen from the UAV property. Sierra Highway, a Class I bike lane, and the Union Pacific Railroad are located between the two uses creating a significant buffer. Additionally, the proposed project cannot be readily accessed directly from the UAV campus, as there is no public right-of-way connection. The perimeter of the proposed facility would also have an eight-foot wall with a three-foot wrought iron fence on top to screen the property. While within the distance requirements, the proposed project would not affect UAV. The addition of a medical cannabis cultivation facility would provide some economic vitality to the City by creating 10 to 15 permanent full-time and part-time jobs. The proposed facility will be located in an existing building. It will be inconspicuous and secure with limited access only by those employed by the facility or authorized to enter it. This facility will not be open to the public and is not anticipated to be detrimental to the public health, safety, convenience, and welfare. The nature of the business is in line with general industrial uses and is not expected to cause objectionable noise, vibrations, fumes, or odors (due to the required ventilation system), dust, glare, or physical activity. It is anticipated to generate very low levels of vehicular traffic and essentially no additional pedestrian traffic. Due to the reasons above, Staff is recommending approval of the proposed project. Respectfully submitted, Cynthia Campaña, Associate Planner cc: Applicant Engineer
RESOLUTION NO. 17-22 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LANCASTER, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 17-13 WHEREAS, a conditional use permit has been requested by High Desert Cultivation Center, LLC to operate a medical cannabis cultivation facility within an existing 19,520-square-foot building, with a waiver from the distance requirements, in the Light Industrial (LI) Zone; and WHEREAS, an application for the above-described conditional use permit has been filed pursuant to the regulations contained in Article I Chapter 17.32 and Chapter 17.43, of the Lancaster Municipal Code (LMC); and WHEREAS, a notice of intention to consider the granting of a conditional use permit has been given as required in Article V of Chapter 17.32, Chapter 17.36.020, and 17.04.080 of the Lancaster Municipal Code, and in Section 65905 of the Government Code of the State of California; and WHEREAS, staff has performed necessary investigations, prepared a written report, and recommended approval of this conditional use permit application, subject to conditions; and WHEREAS, public notice was provided as required by law and a public hearing was held on ; and WHEREAS, Section 15301 of the State CEQA Guidelines (Cal. Code Reg. tit. 14 15000 et seq.) provides that the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency s determination, do not have a significant effect on the environment, and are therefore exempt from the provisions of the California Environmental Quality Act; and WHEREAS, staff has determined that the exemption provided by Section 15301 of the State CEQA Guidelines applies in this case because the conditional use permit will merely permit operation of a medical cannabis cultivation facility in an existing structure or facility and will involve negligible or no expansion of use; and WHEREAS, this Commission hereby adopts the following findings in support of approval of this application: 1. The proposed use of a medical cannabis cultivation facility is in conformance with the General Plan land use designation of Light Industrial (LI) for the subject property, and with the following various goals, objectives, policies, and specific actions of the General Plan: Specific Action 4.3.1(h): Ensure that new commercial and industrial activities (including the placement of mechanical equipment) are designed so that activities comply with the maximum noise level standards at the property line of adjacent uses, thereby minimizing impacts on adjacent uses.
PC Resolution No. 17-22 Page 2 Goal 16: To promote economic self-sufficiency and a fiscally solvent and financially stable community. Policy 16.3.4: Promote business development in those industrial sectors which are underrepresented in the Antelope Valley area economy. Objective 17.1 Table 8-1: Light Industry: Clean, non polluting industrial and office uses with support commercial. Maximum floor area ratios of 0.5. Goal 18: To manage development by planning the location and intensity of urban and rural uses to create a comprehensive structure Policy 18.1.3: Ensure that land use map designations are compatible with adjacent proposed land uses, surrounding developments, existing infrastructure, the roadway system, and Redevelopment Project Areas. Policy 18.2.2: Encourage appropriate development to locate so that municipal services can be efficiently provided. 2. The proposed medical cannabis cultivation facility complies with the requirements of Chapters 17.43 and 5.56 of the Lancaster Municipal Code, all applicable environmental, building, electrical, zoning and fire codes, security requirements, accessibility requirements of the Americans with Disabilities Act, operating criteria required pursuant to state law and Chapter 5.56 of the Lancaster Municipal Code, and all other applicable City and state laws and regulations. 3. The requested medical cannabis cultivation facility at the location proposed will not: a. Adversely affect the health, peace, comfort, or welfare of persons residing or working in the surrounding area, because the cultivation facility will be located in an existing building. The nature of business is in line with general industrial uses. The cultivation facility does have the potential to produce medical marijuana plant odors that may be detected from outside the facility. To address this concern, Section 17.43.070(B)(12) of the LMC requires a medical cannabis cultivation facility to install or provide a sufficient odor absorbing ventilation and exhaust system. The proposed project would have a negative pressure system to ensure that odors do not escape when doors are opened. b. Jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare, because the cultivation facility will be located in an inconspicuous, secure space with limited access by only those employed by the facility, or authorized to enter it. This facility will not be open to the public. Additionally, a security plan was prepared for the proposed project and reviewed by Public Safety. The plan was deemed to be adequate based upon a memo provided by Public Safety and attached to the staff report.
PC Resolution No. 17-22 Page 3 4. The proposed site is adequately served: a. By Yucca Avenue and Avenue J-5, which are of sufficient width and improvement to carry the anticipated daily vehicle trips such use would generate; and b. By other public or private service facilities, including sewer, water, fire, and police services, as required. 5. The proposed use will serve a specific community need by creating 10 to 15 permanent full-time and part-time jobs, improving the economic viability of the area. 6. Approval of the distance waiver for the medical cannabis cultivation facility is not expected to result in an adverse effect on adjacent property, uses, or residents because the University of the Antelope Valley (UAV) is separated from the project site by the Union Pacific Rail Road and Sierra Highway. The nearest railroad crossing is located at Avenue J, approximately 1/3 mile from UAV. The existing church is operating without any City permits, City business license, or a certificate of occupancy. Additionally, the hours of operation of the proposed project would not conflict with the hours of services at the church.
PC Resolution No. 17-22 Page 4 NOW, THEREFORE, BE IT RESOLVED: 1. This Commission hereby finds that is exempt from CEQA pursuant to Section 15301 of the State CEQA Guidelines because it will permit operation of an existing structure or facility and will involve negligible or no expansion of use. Staff is hereby authorized and directed to prepare, execute and file a Notice of Exemption pursuant to CEQA and the State CEQA Guidelines. 2. This Commission hereby approves the distance waiver pursuant to the LMC Chapter 17.43. 3. This Commission hereby approves, subject to the conditions attached hereto and incorporated herein. AYES: PASSED, APPROVED and ADOPTED this 17 th day of July 2017, by the following vote: NOES: ABSTAIN: RECUSED: ABSENT: ATTEST: JAMES D. VOSE, Chairman Lancaster Planning Commission BRIAN S. LUDICKE, Planning Director City of Lancaster
ATTACHMENT TO PC RESOLUTION NO. 17-22 CONDITIONAL USE PERMIT NO. 17-13 CONDITIONS LIST GENERAL CONDITIONS 1. Unless otherwise indicated herein, the use of the site shall be in substantial conformance with approved site plans on file in the Development Services Department. 2. This conditional use permit must be used within two years (2) from the date of approval; the conditional use permit will expire. The applicant may, not less than sixty days (60) prior to the expiration date, request a total of three one-year extensions in writing to the Development Services Director. Modifications to the plan, including timing of on and off-site improvements that do not raise significant new issues or extend the overall time frame beyond the approval period may be approved by the Development Services Director. NOTE: Issuance of building permits, installation of off-site improvements, and grading of the site do not constitute use of the conditional use permit. Under the Zoning Ordinance, construction or other development, or use authorized by the conditional use permit, must have commenced. Generally, the City requires that the slab of a major building in the project be poured and inspected in order to consider the permit used, although the circumstances of each case may vary depending on the land use involved. 3. All requirements of the Municipal Code and of the specific zoning of subject property must be complied with, unless otherwise set forth in the permit or shown on the approved plot plan. 4. Three (3) copies of a signage plan shall be submitted for approval by the Development Services Director at the time of building plan issuance to be in compliance with the Municipal Code and Design Guidelines. Such plan shall be comprehensive and shall include location, height, and square-footage, method of attachment, construction materials, and colors of each sign proposed to be placed on the site. 5. The applicant is hereby advised that the use of any signs, strings or pennants, banners or streamers, clusters of flags, and similar attention-getting devices are prohibited, except where there has been prior approval from the Development Services Department. 6. If any provision of this permit is held or declared to be invalid, the permit shall be void, and the privileges granted hereunder shall lapse. 7. It is further declared and made a condition of this permit that if any condition hereof is violated, or if any law, statute, or ordinance is violated, the permit shall be suspended and the privileges granted hereunder shall lapse provided that the applicant has been given written notice to cease such violation and has failed to do so for a period of thirty (30) days. 8. Prior to occupancy of any buildings or structures, the permittee shall request, not less than fortyeight (48) hours in advance, that on-site inspection be made by the Development Services
Conditions List Page 2 Department to verify that development of the property has occurred in consonance with conditions, as enumerated in this permit. 9. The applicant shall be responsible for notifying the Development Services Director in writing of any change in ownership, designation of a new engineer, or a change in the status of the developer, within thirty (30) days of said change. 10. The Development Services Director shall execute the necessary documents to ensure the recording of this permit with the County Recorder s Office. 11. This conditional use permit will not be effective until ten (10) working days after the date upon which it is granted by the Planning Commission, and until the applicant has executed and returned to the Planning Department an authorized acceptance of the conditions of approval applicable to said permit. 12. Prior to issuance of a certificate of occupancy, the applicant shall undergo a comprehensive City inspection to confirm that the facility and operations fully comply with all applicable environmental, building, electrical, zoning and fire codes, security requirements, accessibility requirements of the Americans with Disabilities Act, Chapter 5.56 of the Lancaster Municipal Code, all other applicable City and state laws and regulations, and any specific, additional operating procedures and measures imposed as conditions of approval in the conditional use permit and as may be imposed as conditions of approval in the local license. PLANNING 13. The applicant shall complete the following items prior to the issuance of the certificate of occupancy: a. The parking area shall be repaved, and parking stalls restriped and signed to the satisfaction of the City Engineer. b. All broken or damaged sidewalk, curb, gutter, and drive approaches shall be replaced repaired, and/or brought up to current ADA Standards, as determined by the City Engineer. c. A new trash enclosure shall be constructed per City standard. d. Landscaping shall be renovated and maintained in perpetuity. e. All existing windows, doors, and storefront openings shall be properly secured to the satisfaction of the Los Angeles County Lancaster Sheriff s Station. f. Any existing chain-link fence on the property shall be removed and replaced with an acceptable fence material, such as block or tubular steel.
Conditions List Page 3 14. Any and all window and door security devices such as metal bars, gates, and shutters shall be installed within the interior of the building and screened from the public street to the satisfaction of the Development Services Director. 15. The applicant shall comply with all applicable provisions of the City of Lancaster Municipal Code (LMC) relating to medical cannabis cultivation businesses including, but not limited to, those provisions of Chapters 5.56 and 17.43, as they may be amended from time to time. 16. No minors shall be permitted inside any restricted access areas, including the cultivation portion of the medical cannabis business, under any circumstance. 17. Prior to issuance of a certificate of occupancy, the applicant shall prepare, implement, and make available a written Hazardous Materials Management Plan to include a listing of all hazardous products, chemicals, fertilizers, herbicides, pesticides, lubricants, flammable liquids, bleaches, cleaning supplies, aerosols, etc. that will be stored, or in use, on the site and the related Safety Data Sheets (SDS). The applicant shall ensure the safe and proper storage of chemicals and products, in accordance with all applicable local state and federal laws, including the use of appropriate personal protective equipment when handling hazardous materials. A copy of the Hazardous Materials Management Plan shall be subject to review and approved by the Development Services Director. 18. Prior to issuance of a certificate of occupancy, the applicant shall provide a plan and proof of coordination with the Regional Water Quality Control Board and Sanitation District to determine appropriate pretreatment procedures, if any, required for industrial effluent from the facility. 19. Negative air pressure shall be maintained inside the building. 20. Doors and windows shall remain closed, except for the minimum length of time needed to allow people to ingress or egress the building. 21. Prior to issuance of any building permit, the City shall receive documentation that the odor filtration system was designed by a mechanical engineer. The odor filtration system plan shall include the engineer s stamp, certifying that it complies with LMC 17.43.070 B12. 22. Detection of cannabis odor outside of the proposed medical cannabis facility may result in the revocation of the. 23. The applicant shall store all green waste product within the secured building until waste management pick-up.
Conditions List Page 4 LANDSCAPING 24. The development shall comply with all requirements of Ordinance No. 907 and the State of California Model Water Efficient Landscape Ordinance. The requirements are subject to revision, upon adoption of the City s updated Water Efficient Landscape Ordinance. ENGINEERING 25. All construction and/or installation of improvements shall be undertaken to the specifications of the LMC. 26. Prior to doing any work within the public right-of-way, an encroachment permit shall be obtained from the Development Services Department. GRADING/DRAINAGE 27. Prior to issuance of certificate of occupancy, the property shall be annexed into the Lancaster Drainage Maintenance District. BUILDING 28. The parking lot exceeds the maximum slope of 2%, and additional paving shall be required. Prior to issuance of a certificate of occupancy, a parallel curb ramp with detectable warning shall be constructed along with striping and signs. 29. Prior to issuance of a certificate of occupancy, the applicant shall construct a 12-foot van accessible stall. 30. Prior to issuance of a certificate of occupancy, the applicant shall construct an accessible route/path of travel from the public right-of way to the building. 31. Prior to issuance of a certificate of occupancy, the occupancy shall be changed from B to F-1.