HomeMy Public PortalAboutA 2017-12-12 PLANNING COMMISSION (SPECIAL MEETING)Cityo!
LYNW()()D
California
11330 Bullis Road
Lynwood,CA 90262
(310)603-0220
DEC 11
AGENDA
PLANNING COMMISSION &PARKING &BUSINESS IMPROVEMENT
DISTRICT BOARD (PBIDB)
SPECIAL MEETING
Tuesday,December 12, 2017- 5:00 P.M.
CITY HALL COUNCIL CHAMBERS
LYNWOOD, CA 90262 CiTY OF LYNWOOD
CiTY CLERKS OFFICE7«~~Ctrr~v-
In Compliance with the Americans with Disabilities Act (ADA), if you are a disabled person
and need a disability related modification or accommodation to participate in this meeting,
please contact the City Clerk's Department at (310) 603-0220 ext 214. Requests must
be made as early as possible, and at least one full business day before the start of the
meeting. Staff reports or other materials related to an item on this Agenda which are
distributed to the Planning Commission less than 72 hours before this scheduled meeting
shall be available for public inspection in the Development, Compliance and Enforcement
Department/Planning Division office located at 11330 Bullis Road, Lynwood, CA 90262,
during normal business hours.
1.CALL TO ORDER
2.CERTIFICATION OF AGENDA
3.ROLL CALL
1. Elizabeth Battle,Commissioner
2. Juan Enciso,Commissioner
3. Sylvia Ortiz,Commissioner
4. Kenneth West,Vice-Chair
5. Jorge Casanova, Chairperson
4.PLEDGE OF ALLEGIANCE
Planning Commission &Parking &Business Improvement District Board Agenda
December 12,2017 SPECIAL MEETING
Page 2 of3
5.PRESENTATIONS AND RECOGNITIONS
None.
6.APPROVAL OF MINUTES
None
7.SWEARING IN OF SPEAKERS
(City Clerk or Designee)
8.NON-AGENDA PUBLIC ORAL COMMUNICATION
(This time is reserved for members of the public to address the Planning
Commission relative to matters that are not on the agenda.No action may be
taken on non-agenda items unless authorized by law)
9. PUBLIC HEARiNG(S)
(With respect to speakers addressing items listed under the heading of public
hearing,you are asked to wait until the Chair formally opens the public hearing and
the item is called)
A. The proposed project,referenced herein as the Cannabis Development
Agreement 20i7-i3 through 20i7-20 and OA 20i7-03 Modification No.t,
represent the 8 applicant selected by the Lynwood City Council to negotiate
Development Agreements for cannabis activities in the City.
I.Staff Report Presentation
II. Open Public Hearing ( M 1
III.Public Testimony
IV. Close Public Hearing
V.Commission Discussion
VI. Call for the question/vote ( M S )
10.OLD BUSINESS
None
2
Planning Commission &Parking &Business Improvement District Board Agenda
December 12,2017 SPECIAL MEETING
Page 3 of3
11. PLANNING COMMISSION/PBIDB ORAL COMMUNICATIONS
1. Elizabeth Battle,Commissioner
2. Sylvia Ortiz,Commissioner
3. Kenneth West, Vice Chair
4. Jorge Casanova, Chairperson
5. Juan Enciso,Commissioner
12.DIRECTOR COMMUNICATIONS
13.ADJOURNMENT
Next Regular Meeting is scheduled for December 12, 2017.
APPROVED BY:
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APPROVED BY:
PREPARED BY:
SUBJECT:
Recommendation:
AGENDA STAFF REPORT
December 12, 2017
Honorable Chair and Members of the Planning Commission
of the City of Lynwood
v--
,'--_....-T""rvhn Yonai, Interim Director of Community Development
Francisco Leal, Special Counsel
Development Agreements 2017-03 MOD and 2017-13
through 2017-20
Staff recommends that the Planning Commission of the City of Lynwoodadopt Resolution
No. 3387 recommending the approval of Development Agreements 2017-03 MOD and
2017-13 through 2017-20, contingent on Council adoption of Ordinance No.__,
amending Title 4-34 of the Municipal Code, and:
FIND that approval of the Development Agreements 2017-03 MOD and 2017-13 through
2017-20 qualifies as exempt pursuant to CEQA Guidelines, Section 15302(b) -
Replacement of a commercial structure with a new structure of substantially the same
size, purpose and capacity; or Section 15332 - In-Fill Development Projects. The In-Fill
Development exemption (Class 32) consists of projects characterized as in-fill
development meeting the conditions described in Section 15332 and that it is consistent
with the Lynwood General Plan.
Project Description:
The proposed project, referenced herein as the Cannabis Development Agreements
2017-03 MOD and 2017-13 through 2017-20, represents eight (8) applicants seeking new
development agreements and one (1) applicant seeking an amended development
agreement for cannabis activities in the City.
Background:
In 1996, the voters of the State of California approved Proposition 215 (codified In Health
and Safety Code Section 11362.5 and entitled "The Compassionate Use Act of 1996").
The Compassionate Use Act ("CUA") allows individuals to obtain and use medical
marijuana without the threat of criminal prosecution. Under the CUA, "qualified patients"
with a physician's prescription for medical cannabis and "primary caregivers" are exempt
from prosecution under Health and Safety Code Section 11357 (possession of marijuana)
and 11358 (cultivation of marijuana) for specified amounts. On January 1, 2004, the
California State Legislature enacted Senate Bill 420 (Medical Marijuana Program Act or
"MMPA") to clarify the scope of the CUA. MMPA allows cities and other governing bodies
to adopt and to enforce rules, regulations, and laws consistent with Senate Bill 420.
The California Supreme Court has made clear that neither the CUA nor the MMPA
expressly or impliedly preempt the authority of cities or counties, under their traditional
land use and police powers to allow, restrict, limit or entirely exclude marijuana cultivation
or distribution within their jurisdictions. Therefore, cities and counties may adopt local
ordinances that regulate the location, operation or establishment of medical marijuana
collectives and to enforce such ordinances. Pursuant to the City's police power, the
adopted regulations should include consideration of the safety of all residents and
businesses, both consumers and non-consumers. The proposed development
agreements are designed to address safety and professional management of any
cultivation, manufacturing, or testing cannabis business.
On October 9, 2015, the Governor signed three pieces of state legislation, collectively the
Medical Marijuana Regulation and Safety Act (MMRSA): Assembly Bill (AB) 266, AB 243,
and Senate Bill (SB) 643. AB 266 establishes a dual licensing structure requiring a state
iicense and a iocai iicense or iand use permit. The Department of Consumer Affairs wiii
coordinate the overall regulatory structure establishing minimum health and safety and
testing standards. AB 243 establishes a regulatory and licensing structure for cultivation
sites under the Department of Food and Agriculture. SB 643 establishes criteria for
licensing of medical marijuana businesses, regulates physicians, and recognizes local
authority to levy taxes and fees.
In June 2016, the California State Legislature amended MMRSA and re-titled it the
"Medical Cannabis Regulation and Safety Act (MCRSA)", which provides for the licensure
and regulation of medical cannabis and requires all commercial cannabis activity to be
conducted between licensees. Upon the date of implementation of regulations by the
licensing authority, MCRSA prohibits a person from engaging in commercial cannabis
activity without possessing a state license and a local permit, license, or other
authorization.
Generally, MCRSA governs the licensing and control of all medical marijuana businesses
in the State, including granting criminal immunity for licensees. Nonetheless, the
legislation protects local control in several ways: (1) requires dual licensing; (2) allows
local governments to enforce state law in addition to its own local ordinance (upon request
by the local jurisdiction): and (3) maintains civil and criminal penalties for unlicensed
activity.
On November 8,2016,the State of California voters approved the Control, Regulate, and
Tax Adult Use Marijuana Act (AUMA) (Proposition 64), which immediate legalized
personal use of marijuana by persons 21 years of age or older, possession of small
amounts of marijuana for personal use (up to an ounce), and the cultivation of up to six
(6) marijuana plants within a single private residence for personal use. The adoption of
AUMA also authorized the issuance of State licenses for commercial nonmedical
marijuana business operations by 2018.
In June 2017 the California State Legislature enacted Senate Bill 94, "Cannabis -
Medicinal and Adult Use," which conformed MCRSA and AUMA into a single regulatory
system and moved many of the laws relating to cannabis into the Business and
Professions Code. It also added certain new provisions, including creating agricultural
cooperatives, a method for collecting taxes, and a process for testing and packaging, and
a system for collecting data on driving under the influence.
On September 18, 2017, California Governor Brown signed AB 133 into law. AB 133
contains many so called "clean-up" provisions to the California Medical and Adult-Use
Cannabis Regulatory and Safety Act ("MAUCRSA"). Like Senate Bill 94, AB 133 moved
many of the laws relating to cannabis into the Business and Professions Code and
expanded on already existing provisions, such as modifying the definition of "premises"
so as to allow multiple cannabis licenses to be issued to the same owner/lessee of one
premises. Other changes include removing the provision from MAUCRSA that requires a
licensed medical manufacturer to only manufacture cannabis products for sale by medical
cannabis retailers; increasing the amount of cannabis concentrates a person may
possess from 4 grams to 8 grams; and removing and/or amending requirements that
regulate how cannabis products are taxed.
Discussion
On December 20, 2016, the City Council adopted Ordinance No. 1688, which added
Chapter 4 Article 34 to the Lynwood Municipal Code, entitled "Medical Cannabis Business
andActivity" ("Cannabis Ordinance"). The Cannabis Ordinance regulatesthe location and
operation of cannabis cultivation, manufacturing, and testing businesses. The Cannabis
Ordinance provides as follows:
1. Purpose and Intent: Generally, to regulate all commercial cannabis within the City.
2. Legal Authority and Definitions
3. Permit Application and Selection Process, including:
a. Development Agreement requirements;
b. Initial application process;
c.Permittee selection guidelines;
d.Appeal procedure;and
e.Permit revocation and abatement.
4.Security measures,including limited access,storage and transportation plan,
surveillance cameras and alarm systems.
5.Operating requirements,including recordkeeping,limitations on City's liability, City
rights of inspection and testing, and restrictions on ownership and location
changes.
6.Designates distance and other conditions for approval.
The City Council approved 11 development agreements for cannabis-related businesses
in September 2017,including cultivation,manufacturing,distribution,and combinations
thereof.
Staff has reviewed the applications of the following applicants and has drafted
Development Agreements with these applicants:
CULTIVATION,MANUFACTURING,DISTRIBUTION,AND DELIVERY
Aftercare Alliance Group
Green Fantasy Corp.
Lynwood Canna Plex
CULTIVATION,MANUFACTURING,AND DISTRIBUTION
COF Organic Farms, Inc.
NMC Organization Incorporated
MANUFACTURING,DISTRIBUTION AND DELIVERY
Growerks LLC
MANUFACTURING AND DISTRIBUTION
Magnolia Extracts LLC
TESTING
General Testing LLC
PGH LLC
Staff considered the followinq factors when reviev"ing the applications:
1.Experience in proposed classification;
2. Proposed location (i.e., zoning,General Plan designation,etc.);
3. Site plans,operation plans,safety and security plans, and other application
materials;and
4.Viability of applicants'proposed community benefits plan.
Each applicant has submitted the necessary information for background checks. Results
of background checks are forthcoming.
California Environmental Quality Act:
The proposed projects for which Development Agreements have been negotiated are
Categorically Exempt from California Environmental Quality Act (CEQA) requirements
under provisions of CEQA Guidelines Section 15302 - Replacement or Reconstruction.
This exemption (Class 2) consists of replacement or reconstruction of existing structures
and facilities where the new structure will be located on the same site as the structure
replaced and will have substantially the same purpose and capacity as the structure
replaced. More specifically, Section 15302 (b) applies to the replacement of commercial
structures with a new commercial structure of substantially the same size, purpose, and
capacity. In this case, the proposed cannabis activities occur in areas zoned for
manufacturing. The proposed project sites are currently developed with manufacturing
uses authorized pursuant to the zoning code or are vacant. Most of the sites also qualify
for the In-Fill exception (Class 32) pursuant to CEQA Guidelines Section 15332 - In-Fill
Development Projects. This exemption applies to projects characterized as in-fill
development meeting the conditions described in Section 15332.
Fiscal Impact:
There are no anticipated negative fiscal impacts. Each approved Development
Agreement is expected to generate revenues for the City's General Fund.
Coordinated With:
Not applicable.
Attachments:
Resolution No. 3387
CITY OF LYNWOOD
RESOLUTION No. 3387
RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
LYNWOOD RECOMMENDING THAT THE CITY COUNCIL APPROVE
DEVELOPMENT AGREEMENTS FOR THE OPERATION OF
COMMERCIAL CANNABIS CULTIVATION,MANUFACTURING,
DISTRIBUTION,DELIVERY,AND TESTING FACILITIES
WHEREAS,Section 65865 ofthe State of California Government Code provides
that cities may enter into a development agreement with any person having a legal or
equitable interest in real properties for the development ofproperties;
WHEREAS,Section 65867.5 ofthe State ofCalifornia Government Code provides
that development agreements shall be approved by ordinance;
WHEREAS,Chapter 4, Title 34 ofthe City ofLynwood Municipal Code provides
that development agreements may be entered into as a condition ofissuance by the City of
regulatory permits for commercial cannabis cultivation,manufacturing,distribution,
delivery,and testing facilities;
WHEREAS,Aftercare Alliance Group seeks permits for a commercial cannabis
cultivation,manufacturing,distribution,and delivery facility for property located at 2899
Norton Avenue;
WHEREAS,it is the desire of the City of Lynwood City Council to approve
issuance of regulatory permits to Aftercare Alliance Group for a commercial cannabis
cultivation,manufacturing,distribution,and delivery facility and to enter into a
development agreement with Aftercare Alliance Group and the owner ofsaid property for
the establishment and operation ofsuch facility;
WHEREAS,COF Organic Farms, Inc., seeks permits for a commercial cannabis
cultivation,manufacturing,and distribution facility for property located at 10869 Drury
Lane;
WHEREAS,it is the desire of the City of Lynwood City Council to approve
issuance of regulatory permits to COF Organic Farms, Inc., for a commercial cannabis
cultivation,manufacturing,and distribution facility and to enter into a development
agreement with COF Organic Farms,Inc., and the owner of said property for the
establishment and operation ofsuch facility;
WHEREAS,Green Fantasy Corp. seeks permits for a commercial cannabis
cultivation,manufacturing,distribution, and delivery facility for property located at 11511
Bellinger Street;
WHEREAS,it is the desire of the City of Lynwood City Council to approve
issuance of regulatory permits to Green Fantasy Corp for a commercial cannabis
cultivation, manufacturing, distribution, and delivery facility and to enter into a
development agreement with Green Fantasy Corp. and the owner of said property for the
establishment and operation ofsuch facility;
WHEREAS,Growerks LLC seeks permits for a commercial cannabis
manufacturing, distribution, and delivery facility for property located at 2820 Butler
Avenue;
WHEREAS,it is the desire of the City of Lynwood City Council to approve
issuance ofregulatory permits to Growerks LLC for a commercial cannabis manufacturing,
distribution, and delivery facility and to enter into a development agreement with Growerks
LLC and the owner ofsaid property for the establishment and operation ofsuch facility;
WHEREAS,Lynwood Canna Plex seeks permits for a commercial cannabis
cultivation, manufacturing, distribution, and delivery facility for property located at 10842-
46 Stanford Avenue;
WHEREAS,it is the desire of the City of Lynwood City Council to approve
issuance of regulatory permits to Lynwood Canna Plex for a commercial cannabis
cultivation, manufacturing, distribution, and delivery facility and to enter into a
development agreement with Lynwood Canna Plex and the owner of said property for the
establishment and operation ofsuch facility;
WHEREAS,Magnolia Extracts LLC seeks permits for a commercial cannabis
manufacturing and distribution facility for property located at 11118 Wright Road;
WHEREAS,it is the desire of the City of Lynwood City Council to approve
issuance of regulatory permits to Magnolia Extracts LLC for a commercial cannabis
manufacturing and distribution facility and to enter into a development agreement with
l\lagnolia Extracts LLC and the owner ofsaid property for the establishment and operation
ofsuch facility;
WHEREAS,NMC Organization Incorporated seeks permits for a commercial
cannabis manufacturing, and distribution, facility for property located 10810-44 Alameda
Street;
WHEREAS,it is the desire ofthe City Council to approve issuance of regulatory
permits to NMC Organization Incorporated for a commercial cannabis manufacturing,
distribution, and delivery facility and to enter into a development agreement with NMC
Organization Incorporated and the owner of said property for the establishment and
operation ofsuch facility;
WHEREAS,the City of Lynwood has received regulatory permit applications
from the entities listed below for commercial cannabis testing facilities for properties
located as listed below:
General Testing LLC
PGHLLC
2826 Norton Avenue
3148 Martin Luther King Jr. Blvd.
WHEREAS,it is the desire ofthe City Council to approve issuance ofregulatory
permits to these entities for commercial cannabis testing facilities and to enter into
development agreements with each entity and the owners of said properties for the
establishment and operation ofsuch facilities; and
WHEREAS,the Planning Commission of the City of Lynwood has considered
evidence regarding the proposed development agreements and has made the following
findings:
1. FINDING: That the development agreements are consistent with the General Plan
objectives, policies, land uses, and implementation programs and any other
applicable specific plans.
a. The proposed commercial cannabis cultivation, manufacturing,
distribution, delivery, and testing facilities are allowed uses in the
Manufacturing (M) zoning district.
b. The proposed projects comply with all commercial development standards
for the Manufacturing (M) zoning district set forth in Chapter 25, Article 10
and Article 30 ofthe zoning code,including but not limited to requirements
for minimum lot area, maximum lot coverage, buildings setbacks, buildings
height limits, landscaping, resource efficiency, lighting, parking
performance standards, and signage.
c. The General Plan encourages infill and intensification ofland uses through
the reuse or redevelopment of vacant or underutilized industrial,
commercial, and residential sites.It also encourages the redevelopment and
reuse of vacant and/or underutilized commercial buildings. The proposed
projects utilize manufacturing zoned properties that are either vacant or
under-utilized.
d. The General Plan encourages development of industrial uses that are
consistent with the scale and character of surrounding land uses. The
proposed project will develop multiple cultivation,manufacturing,
distribution, delivery, and testing facilities that are ofthe scale and intensity
appropriate for a manufacturing development. The new development will
consist of buildings that are of a size and height similar to adjacent and
nearby industrial buildings.
e. The proposed projects are consistent with General Plan policies that call for
the recruitment of businesses, industries, and other employers whose
operations are consistent with long-term economic development goals. The
proposed projects bring a new industry to the City that will provide new
jobs to promote economic development and further the City's jobs to
housing goals.It will also provide a significant source of revenue to the
City that will enable the City to provide services and benefits to the
community that it is not currently able to do because ofbudget limitations
and insufficient revenues.
2. FINDING: That the proposed development agreements are in conformance with
the public convenience and general welfare of persons residing in the immediate
area and will not be detrimental or injurious to properties or persons in the general
neighborhood or to the general welfare ofthe residents ofthe city as a whole.
a. The construction of a steel security fence around the perimeter of all
buildings where commercial cannabis is cultivated, manufactured, stored,
processed, and handled will provide increased security for the site and the
materials and products stored, cultivated, and manufactured in the facility.
b. A video surveillance system will be installed to monitor all exterior areas of
the properties, all site and buildings entrances and exits, and all interior
spaces of the buildings, thereby providing additional security for the entire
properties.
c. The facilities will not be open to the general public and no direct sales or
product distribution will be made to the general public.
d. The development agreements include provisions for public outreach and
education programs to promote the public welfare and operational and
security plans to ensure the facility is operated in a safe and legal manner.
3. FINDING: That the development agreements will promote the orderly
development of property and the preservation ofproperty values.
a. The proposed projects included in the development agreements are for infill
development that will intensify land uses through the redevelopment of
vacant and underutilized commercial sites.
b. The proposed commercial cannabis cultivation,manufacturing,
distribution, delivery, and testing facilities are in a manufacturing zoned
district in proximity to other manufacturing type uses.
4. FINDING: All requirements of the California Environmental Quality Act have
been met.
a.If a project is subject to several discretionary approvals, for purposes of
CEQA the "project"refers to the totality ofthe development project and not
to each separate governmental approval (CEQA Guidelines section 15378).
For purposes of the required CEQA discussion and analysis, the project
under review includes the issuance of regulatory permits, approval of
development agreements, and tentative map and final map approvals for
subdivision ofcertain specified property.
b. The proposed projects (development agreements) are Categorically Exempt
from California Environmental Quality Act (CEQA)requirements under
provisions of CEQA Guidelines Section 15302 -Replacement or
Reconstruction. This exemption (Class 2) consists of replacement or
reconstruction ofexisting structures and facilities where the new structure
will be located on the same site as the structure replaced and will have
substantially the same purpose and capacity as the structure replaced. More
specifically,Section 15302 (b) applies to the replacement of commercial
structures with a new commercial structural of substantially the same size,
purpose, and capacity. In this case, the proposed cannabis activities occur
in areas zoned for manufacturing. The proposed project sites are currently
developed with manufacturing uses authorized pursuant to the zoning code
or are vacant. Most ofthe sites also qualify for the In-Fill exception (Class
32)pursuant to CEQA Guidelines Section 15332 - In-Fill Development
Projects. This exemption applies to projects characterized as in-fill
development meeting the conditions described in Section 15332.
NOW,THEREFORE,THE PLANNING COMMISSION OF THE CITY OF
LYNWOOD RECOMMENDS THE FOLLOWING:
That the development agreements with Aftercare Alliance Group, COF Organic
Farms, Inc., General Testing LLC, Green Fantasy Corp., Growerks LLC,Lynwood Canna
Plex,Magnolia Extracts LLC, NMC Organization Incorporated, and PGH LLC be
approved and adopted by the City Council substantially in the form of the agreements
attached hereto.
PASSED,APPROVED,AND ADOPTED,at a special meeting of the Planning
Commission of the City ofLynwood, California, this 5th day ofDecember 2017.
CITY OF LYNWOOD
PLANNING COMMISSION
Chair
ATTEST:
Secretary
APPROVED AS TO FORM
AND LEGAL CONTENT:
LEAL &TREJO,A PC
Francisco Leal, Special Counsel
CERTIFICATION
I,, Secretary of the Planning Commission of the City of Lynwood, do hereby
certify that Resolution No. 3387 was duly adopted at a special meeting of the Planning
Commission of the City of Lynwood, held on the 5th day ofDecember 2017 and approved by the
following vote, to wit:
NOES:
ABSENT:
ABSTAIN: