TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Glenn W. Gross, Community Development Director
SUBJECT:
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Proposed amendments to the Salem Revised Code to allow the commercial growing of recreational marijuana as a conditional use in the Industrial Commercial (IC) and the Industrial Park (IP) zones
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
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ISSUE:
Should City Council engross Ordinance Bill No. 10-16, which allows the commercial growing of recreational marijuana as a conditional use in the Industrial Commercial (IC) and the Industrial Park (IP) zones, and, as engrossed, prohibits medical marijuana facilities and recreational marijuana retailers in the Central Business District (CB) Zone, and proceed to second reading for enactment?
RECOMMENDATION:
recommendation
Engross Ordinance Bill No. 10-16, which allows the commercial growing of recreational marijuana as a conditional use in the Industrial Commercial (IC) and the Industrial Park (IP) zones, and, as engrossed, prohibits medical marijuana facilities and recreational marijuana retailers in the Central Business District (CB) Zone, and proceed to second reading for enactment.
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SUMMARY AND BACKGROUND:
This code amendment proposes to allow the commercial growing of recreational marijuana as a conditional use in the Industrial Commercial (IC) and the Industrial Park (IP) zones, where commercial recreational grows are currently prohibited.
In 2015, City Council adopted an ordinance restricting the location of commercial growing of recreational marijuana to the IG, II, and EFU zones. The Planning Commission had recommended inclusion of the IC zone. Since then, City staff and Council have learned that there are at least two existing medical marijuana grow sites in the IC and IP zones that have made investments to improve their properties expecting to be able to transition their medical grow operations into commercial grows for the recreational market. This code amendment would allow these businesses and others in similar situations to commercially grow recreational marijuana in the IC and IP zones if they receive conditional use permit approval. The conditional use permit process provides a public hearing on each grow site request and allows the City to apply appropriate conditions of approval to grow sites on a case by case basis.
During the July 25, 2016 public hearing on this code amendment, City Council adopted a motion to engross the proposed ordinance bill to prohibit medical marijuana facilities and recreational marijuana retailers in the Central Business District (CB) Zone.
Proposed Ordinance Bill No. 12-16, which repeals the City’s medical marijuana licensing program (and includes a prohibition on medical marijuana dispensaries in the CB Zone) is also on tonight’s agenda for second reading. Conducting second reading of each ordinance tonight will result in both ordinances becoming effective on the same date, September 7, 2016, and ensure the continued prohibition on marijuana sales in the CB zone.
FACTS AND FINDINGS:
Procedural Findings
1. Under SRC 300.1100, legislative land use proceedings include proposals to amend the City’s land use regulations and involve the creation, revision, or implementation of broad public policy generally affecting a large number of individual properties. The final decision in a legislative land use proceeding is an ordinance enacted by the City Council.
2. On March 28, 2016, the City Council discussed allowing the commercial growing of recreational marijuana in the IC and IP zones and directed staff to bring back options to accomplish that. On May 23, 2016, City Council reviewed various options provided by staff and directed staff to prepare an ordinance that allows grow sites as a conditional use in the IC and IP zones. On June 27, 2016, City Council conducted first reading of Ordinance Bill No. 10-16 and directed staff to schedule a public hearing on the proposed amendments.
3. On July 25, 2016, City Council held a public hearing on the proposed amendments and adopted a motion to engross the proposed ordinance bill to prohibit medical marijuana facilities and recreational marijuana retailers in the Central Business District (CB) Zone and advance the engrossed ordinance to second reading for adoption.
Proposed Code Amendment
1. The proposed code amendments allow the commercial growing of recreational marijuana as a conditional use in the IC and IP zones, where commercial recreational grows are currently prohibited. IC and IP zoned areas are similar in character to many General Industrial (IG) zoned areas in the City, where recreational commercial grows are currently allowed, although IC zoned lands are usually located closer to residential neighborhoods and commercial centers than IG zoned lands. The IC zone generally allows a wide variety of retail, office, heavy commercial, light manufacturing, and warehousing activities. The IP zone allows industrial uses, along with uses providing services and support to industry, in a park like setting.
This code amendment would allow existing medical grow operations that are located in the IC and IP zones to transition to growing for the recreational market and it would allow new businesses to commercially grow recreational marijuana in the IC and IP zones. All commercial growers of recreational marijuana would need conditional use permit approval to locate in the IC and IP zones.
2. The conditional use permit process includes notice to the surrounding properties and a public hearing before the Hearings Officer for each commercial grow site request. Through this process, appropriate conditions of approval may be applied to conditional use permits on a case by case basis to mitigate possible negative impacts of a particular grow site on the surrounding area. A conditional use permit could contain conditions of approval such as requiring the grow site to be located indoors out of site of neighbors, requiring installation of an air filtration system that prevents any odors from leaving the grow facility, requiring landscaped setbacks from adjacent properties, or other appropriate conditions depending on the situation.
3. Commercial growing of recreational marijuana has been allowed only in the General Industrial (IG), Intensive Industrial (II), and Exclusive Farm Use (EFU) zones since the passage of an ordinance on the topic in late 2015. Commercial growers of recreational marijuana require a state license to operate. The first such state licenses were issued in May 2016, so it is yet to be seen what sorts of ongoing impacts these types of operations may have on surrounding properties. Medical grow sites, however, have operated in the City of Salem for several years now. Under state law, medical grows generally must be smaller than the grow size allowed for the recreational market. Medical grows are allowed in most zones throughout Salem, including residential areas.
The City’s Code Compliance Section has received two complaints about existing medical grow sites in 2016. One was for odor, and was resolved by having the grower replace filters in their ventilation system. The other complaint was for excessive exterior lighting, which proved to be unfounded. Likewise, the Police Department reported that almost all calls to police about the existing medical grow sites have been about odor.
4. During the July 25, 2016 public hearing on this code amendment, the City Council adopted a motion to direct staff to engross the ordinance to include a provision that prohibits medical marijuana facilities and recreational marijuana retailers in the Central Business District (CB) Zone.
Findings Addressing Approval Criteria
1. SRC 110.085 establishes the following approval criteria which must be met in order for a code amendment to be approved:
a. The amendment is in the best interest of the public health, safety, and welfare of the City; and
Finding: The proposed amendments would allow the commercial growing of recreational marijuana as a conditional use in the IC and the IP zones, where it is currently prohibited. The IC and IP zones are similar in character to the IG zone, where commercial recreational growing is currently allowed, except that IC and IP zones may in some cases be closer to residential and commercial neighborhoods. Under the proposal, all commercial growers of recreational marijuana would require conditional use permit approval to locate in the IC and IP zones. The conditional use permit process includes notice to the surrounding properties and a public hearing before the Hearings Officer for each commercial grow site request. Through this process, appropriate conditions of approval may be applied to conditional use permits on a case by case basis to mitigate possible negative impacts of a particular grow site on the surrounding area, thereby protecting the public health, safety, and welfare of the City.
The proposed code amendments also prohibit medical marijuana facilities and recreational marijuana retailers in the Central Business District (CB) Zone. State law gives local governments broad discretion to decide where marijuana sales may be located based on local concerns and preferences through the adoption of zoning regulations. The CB zone is Salem’s principal center of business and commerce, and contains many buildings and public spaces of historic and cultural significance to the city and the region. Approximately seven blocks in the center of the CB zone are within the Salem Downtown Historic District, which contains the largest concentration of commercial buildings designated as historic resources in the city. The CB zone also allows a wide mix of residential and commercial uses, which existing together in close proximity. Medical marijuana dispensaries have been prohibited in the CB zone since the City first enacted the medical marijuana ordinance. Maintaining this CB zone prohibition on medical marijuana sales and extending it to the new recreational sales market will keep the existing mix of allowable land uses in the CB zone, thereby helping to preserve its character. Maintaining this essential character of the CB zone will, in turn, promote the public health, safety, and welfare of the City in satisfaction of this criterion.
b. The amendment conforms with the Salem Area Comprehensive Plan, applicable Statewide Planning Goals, and applicable administrative rules adopted by the Department of Land Conservation and Development.
Finding: The proposed code amendments are consistent with and supportive of the goals, objectives, and policies found in the Salem Area Comprehensive Plan and the applicable Statewide Planning Goals as described below:
Compliance with Salem Area Comprehensive Plan
Section IV (E) Residential Development, Policy 8 - Protection of Residential Areas:
Residential areas shall be protected from more intensive land use activity in abutting zones.
And;
Section IV (I) Industrial Development, Policy 4 - Interface with Other Uses:
Industrial land shall be subject to industrial development standards which ensure that development and operation is compatible with surrounding land uses.
Finding: This code amendment would allow commercial growing of recreational marijuana in the IC and IP zones only with conditional use permit approval. The conditional use permit process provides a public hearing on each grow site request and allows the City to apply appropriate conditions of approval to grow sites on a case by case basis to ensure the grow operation is compatible with surrounding land uses. Example conditions of approval could include such items as requiring the grow site to be located indoors out of site of neighbors, requiring installation of an air filtration system that prevents any odors from leaving the grow facility, or requiring landscaped setbacks from adjacent properties. In this way, the proposed amendments are consistent with the applicable neighborhood compatibility goals and policies of the SACP.
Section II (A)3.d. Definitions and Intent Statements, Plan Map Designations - Central Business District
More than a shopping area, the Central Business District is a special subcategory under Commercial.
This designation indicates the area which serves Salem and the region as a principal center of business and commerce. It is intended that this area contain a compact arrangement of retail and commercial enterprises together with office, financial, cultural, entertainment, governmental, and residential use designed and situated to afford convenient access by pedestrians.
And;
Section IV (G) Commercial Development, Policy 1 - Central Business District:
The central business district shall be maintained and developed as a mixed-use regional retail and employment center for the Salem urban area as well as Marion and Polk counties.
Finding: The proposed code amendments, as engrossed, prohibit medical marijuana facilities and recreational marijuana retailers in the Central Business District (CB) Zone. As the intent statement says, the Central Business District plan map designation is a special category of commercial designation, with various unique characteristics. The Central Business District, which is implemented through the City’s CB zoning designation, is Salem’s principal center of business and commerce, and contains many buildings and public spaces of historic and cultural significance to the city and the region. Approximately seven blocks in the center of the CB zone are within the Salem Downtown Historic District, which contains the largest concentration of commercial buildings designated as historic resources in the city. The CB zone also allows a wide mix of residential and commercial uses, which existing together in close proximity. Medical marijuana dispensaries have been prohibited in the CB zone since the City first enacted the medical marijuana ordinance. Maintaining this CB zone prohibition on medical marijuana sales and extending it to the new recreational sales market will keep the existing mix of allowable land uses in the CB zone, thereby helping to preserve its special character as the heart of Salem’s cultural and business life.
Compliance with Statewide Planning Goals
Only Goal 1, Citizen Involvement, and Goal 9, Economic Development are applicable to this legislative land use proposal.
GOAL 1: CITZEN INVOLVMENT
To develop a citizen involvement program that [e]nsures the opportunity for citizens to be involved in all phases of the planning process.
Finding: Notice of the proposed legislative land use amendment was provided to DLCD at least 35 days in advance of the July 25, 2016 public hearing. In addition notice of the public hearing was provided to the public in accordance with SRC Chapter 300, Procedures for Land Use Applications and Legislative Land Use Proposals.
GOAL 9: ECONOMIC DEVELOPMENT
To provide adequate opportunities throughout the state for a variety of economic activities vital to the health, welfare, and prosperity of Oregon's citizens.
Finding: By allowing the commercial growing of recreational marijuana on IC and IP zoned land within the city with conditional use approval, the code amendment provides Salem with additional economic development opportunities in the emerging recreational marijuana production industry.
Prohibiting marijuana sales in the CB District does not violate Goal 9, because adequate opportunities exist in the City for this use to occur.
Bryan Colbourne, AICP
Planner III
Attachments:
1. Proposed Engrossed Ordinance Bill No. 10-16
07/27/2016