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HomeMy Public PortalAboutA 2018-11-15 PLANNING COMMISSION AGENDA du°ti�• 41 Cit y o f - In Bullis Road OD Lynwoo d, CA 90262 California (310) 603-0220 PLANNING COMMISSION & PARKING & BUSINESS IMPROVEMENT DISTRICT BOARD (PBIDB) SPECIAL MEETING Tuesday,November15,2018 4;00 P.M. CITY HALL COUNCIL CHAMBERS . LYNWOOD, CA 90262 - - AGENDA 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 92Ga 3. ROLL CALL R p ® B�CECEE�D -- 1. Elizabeth Battle, Commissioner 1l f Qf 2. Juan Enciso, Commissioner NOV 1 3 201E 3. Sylvia Ortiz, Commissioner CITY OFLYNWOOD 4. Kenneth West? Vice-Chair CITY OFLY OFFICE 5. Jorge Casanova, Chairperson gn4e /✓ otM 1 Planning Commission&Parking&Business Improvement District Board Agenda November 15,2018 4. PLEDGE OF ALLEGIANCE Vice Chair Ken West. 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. A request to consider Cannabis Amended Development Agreements 2017-02 through 2017-20, representing nineteen (19) licensees seeking amended development agreements for cannabis activities in the City. I. Staff Report Presentation II. Open Public Hearing ( M S ) III. Public Testimony IV. Close Public Hearing V. Commission Discussion VI. Call for the question/vote ( M S ) • Planning Commission&Parking&Business Improvement District Board Agenda November 15,2018 10.OLD BUSINESS None 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 11, 2018. APPROVED BY: atit, Michelle Ramirez, Director of Communi evelopment Lynwood Planning Commission - City of 'LYNWOOD moos__ 4 M ;• LA Ctty Leetug CI'oQQenges I 1 � 4 11330 BULLIS ROAD ' I LYNWOOD,CALIFORNIA 90262 (310)603-0220 DATE: November 15, 2018 TO: Honorable Chair and Members of the Planning Commission FROM: Michelle Ramirez, Director of Community Development SUBJECT: Amended Development Agreements 2017-02 through 2017-20 Recommendation: Staff recommends that the Planning Commission: 1. CONDUCT a public hearing, receive public testimony, and, after discussion, vote upon the matter at hand. 2. ADOPT Resolution No. 3399 entitled "A Resolution of the Planning Commission of the City of Lynwood, County of Los Angeles, State of California Recommending that the City Council Approve Amended Development Agreements for the Operation of Commercial Cannabis Cultivation, Manufacturing, Distribution, Delivery, and Testing Facilities." Background: Project Description The project, referenced herein as the Cannabis Amended Development Agreements 2017-02 through 2017-20, represents nineteen (19) licensees seeking amended development agreements 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 1 "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 amended 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 license and a local license or land use permit. The Department of Consumer Affairs will 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. 2 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 and Activity" ("Cannabis Ordinance"). The Cannabis Ordinance regulates the 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 a number of development agreements for cannabis-related businesses in September 2017, and several more in December 2017, including cultivation, manufacturing, distribution, and delivery, and combinations thereof. The City Council also approved two agreements for cannabis testing facilities. 3 Staff has drafted Amended Development Agreements with the following applicants: Cultivation, Manufacturing, Distribution, and Delivery Aftercare Alliance Group, LLC BECC Holdings Broken Arrow Private Organization Cali Med Cali Premium Produce, LLC COF Organic Farms Green Fantasy Corp. JB Los Angeles Farmers Lacturnus Research Association, Inc. Lynwood Canna Plex Natural Plant Extract of California NMC Organization Inc. Norton Avenue Ventures Pure CA RD Lynwood South Manufacturing, Distribution, and Delivery Growerks, LLC Magnolia Extracts, LLC Distribution General Testing, LLC Testing PGH, LLC The purpose of presenting these amended development agreements is to make their provisions consistent by setting the same fees and regularizing other provisions. Environmental Review The 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 cannabis activities occur in areas zoned fog manufacturing. The project sites are currently developed with manufacturing uses authorized pursuant to the zoning code or are vacant. In addition, most of the sites also qualify for the In-Fill exception (Class 32) pursuant to CEQA Guidelines Section 15332 "In-Fill Development Projects". This 4 exemption applies to projects characterized as in-fill development meeting the conditions described in Section 15332. Legal Review: This staff report and attached Resolution have been reviewed and approved by the City Attorney. Public Notice Process: This item has been noticed through the regular agenda notification process, which includes a 300-foot radius public hearing notice to all affected property owners and residents, publication in the Press Telegram on November 5, 2018, and postings of the notice at the three (3) public locations. Attachment(s): Amended Development Agreements 2017-02 through 2017-20 Resolution No. 3399 5 RESOLUTION NO 3399 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA RECOMMENDING THAT THE CITY COUNCIL APPROVE AMENDED DEVELOPMENT AGREEMENTS FOR THE OPERATION OF COMMERCIAL CANNABIS CULTIVATION, MANUFACTURING, DISTRIBUTION, DELIVERY, AND TESTING FACILITIES WHEREAS, Section 65865 of the 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 of properties; WHEREAS, Section 65868 of the State of California Government Code provides that development agreements shall be amended by ordinance; WHEREAS, Chapter 4, Title 34 of the City of Lynwood Municipal Code provides that development agreements may be entered into as a condition of issuance by the City of regulatory permits for commercial cannabis cultivation, manufacturing, distribution, delivery, and testing facilities; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Aftercare Alliance Group LLC 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 enter into an amended development agreement with BECC Holdings for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 2751 Lynwood Road; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Broken Arrow Private Organization for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for - property located at 2820 Martin Luther King, Jr. Boulevard; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Cali Med for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 2827 Norton Avenue; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Cali Premium Produce LLC for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 11108 Wright Road; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with COF Organic Farms, Inc., for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 10869 Drury Lane; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with General Testing, LLC, for a commercial cannabis distribution facility for property located at 2826 Norton Avenue; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Green Fantasy Corp. 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 enter into an amended development agreement with Growerks LLC for a commercial cannabis manufacturing, distribution, and delivery facility for property located at 11100 Wright Road; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with JB Los Angeles Farmers for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 2851 Lynwood Road; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Lacturnus Research Association, Inc., for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 11010 Santa Fe Avenue;; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Lynwood Canna Plex for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 10842- 46-68 Stanford Avenue; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Magnolia Extracts LLC for a commercial cannabis manufacturing, distribution, and delivery facility for property located at 11118 Wright Road; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Natural Plant Extract of California for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 11116 Wright Road; WHEREAS, it is the desire of the City Council to enter into an amended development agreement with NMC Organization Incorporated for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located 10810-44 Alameda Street; WHEREAS, it is the desire of the City Council to enter into an amended development agreement with Norton Avenue Ventures for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located 2830-60 Norton Avenue; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with PGH LLC for a commercial cannabis testing facility for property located at 3148 Martin Luther King, Jr. Boulevard; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with Pure CA for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 2990 Martin Luther King, Jr. Boulevard; WHEREAS, it is the desire of the City of Lynwood City Council to enter into an amended development agreement with RD Lynwood South for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for property located at 11510 Alameda Avenue; WHEREAS, the Planning Commission of the City of Lynwood has considered evidence regarding the amended development agreements and has made the following findings: A. FINDING That the amended development agreements are consistent with the General Plan objectives, policies, land uses, and implementation programs and any other applicable specific plans. 1. The commercial cannabis cultivation, manufacturing, distribution, delivery, and testing facilities are allowed uses in the Manufacturing (M) zoning district. 2. The projects comply with all commercial development standards for the Manufacturing (M) zoning district set forth in Chapter 25, Article 10 and Article 30 of the 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. 3. The General Plan encourages infill and intensification of land 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 projects utilize manufacturing zoned properties that are either vacant or under-utilized. 4. The General Plan encourages development of industrial uses that are consistent with the scale and character of surrounding land uses. The projects will develop multiple cultivation, manufacturing, distribution, delivery, and testing facilities that are of the 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. 5. The 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 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 of budget limitations and insufficient revenues. B. FINDING That the amended 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 of the residents of the city as a whole. 1. The construction of a steel security fence around the perimeter of all buildings where commercial cannabis is cultivated, manufactured, stored, processed, tested, distributed, and handled will provide increased security for the site and the materials and products stored, tested, cultivated, and manufactured, and distributed In the facilities. 2. 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. 3. The facilities will not be open to the general public and no direct sales or product distribution will be made to the general public at the facilities. 4. The amended 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. C. FINDING That the amended development agreements will promote the orderly development of property and the preservation of property values. 1. The projects included in the amended development agreements are for infill development that will intensify land uses through the redevelopment of vacant and underutilized commercial sites. 2. The commercial cannabis cultivation, manufacturing, distribution, delivery, and testing facilities are located in a manufacturing zoned district in proximity to other manufacturing type uses. D. FINDING All requirements of the California Environmental Quality Act have been met. 1. If a project is subject to several discretionary approvals, for purposes of CEQA the "project" refers to the totality of the 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 approval of amended development agreements. 2. The projects (amended 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 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 structural of substantially the same size, purpose, and capacity. In this case, the cannabis activities occur in areas zoned for manufacturing. The project sites are currently developed with manufacturing uses authorized pursuant to the zoning code or are vacant. In addition, 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. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Lynwood as follows: SECTION 1. The Planning Commission finds that the above recitals are true and correct and are incorporated herein by reference. SECTION 2. The Planning Commission recommends that the City Council approve and adopt the amended development agreements with Aftercare Alliance Group, LLC; BECC Holdings; Broken Arrow Private Organization; Cali Med; Cali Premium Produce, LLC; COF Organic Farms, Inc.; General Testing, LLC; Green Fantasy Corp.; Growerks, LLC; JB Los Angeles Farmers; Lactumus Research Association, Inc.; Lynwood Canna Plex; Magnolia Extracts, LLC; Natural Plant Extract of California; NMC Organization, Inc.; Norton Avenue Ventures; PGH, LLC; Pure CA; and, RD Lynwood South, which are attached hereto. SECTION 3. This resolution is not subject to the California Environmental Quality Act(CEQA) pursuant to the State CEQA Guidelines, California code of Regulations, Title 14, Chapter 3, 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 cannabis activities occur in areas zoned for manufacturing. The project sites are currently developed with manufacturing uses authorized pursuant to the zoning code or are vacant. In addition, 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. SECTION 4. This resolution is the result of an action taken by the Planning Commission at a Special Planning Commission Meeting held on November 15, 2018, by the following vote. YES: NO: ABSENT: ABSTAIN: SECTION 5. The Secretary shall certify to the adoption of this resolution and shall transmit copies of same to the applicants and the Lynwood City Clerk. PASSED, APPROVED, AND ADOPTED this 15th day of November 2018. Jorge Casanova, Chairperson APPROVED AS TO FORM APPROVED AS TO CONTENT Arturo N. Fierro Michelle G. Ramirez Office of the City Attorney Director of Community Development