staff recommendations for medical marijuana dispensaries a

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Meeting Date: June 4, 2013

Report Type: Discussion

Title: Location of Medical Marijuana Dispensaries in Relation to Sensitive Uses andProcessing o f Dispensary Phase Two Permits

Location: Citywide

Issue: Existing medical marijuana dispensaries established prior to October 26, 2010 are permittedto relocate only if they can meet all of the sensitive use location requirements found in the ZoningCode. Many of the facilities have desired to relocate; however it is difficult to meet all the sensitive

use location requirements. Staff and interested parties have looked at various alternatives to allowdispensaries to apply for a modification to the requirements as part of a conditional use permitrequest. In addition, current regulations allow dispensaries to operate only until February 11, 2014.Modifications to deadlines in existing city code sections also need to be made in order to allowdispensaries to continue to operate in the city.

Recommendation: Direct staff to prepare: 1) ordinances amending various sections of titles 5 and 17of the Sacramento City Code relating to the location of dispensaries and deadlines for processingdispensary phase two applications; and 2) forward the ordinances to the Planning and DesignCommission and the City Council for consideration.

Contact: J oy Patterson, Principal Planner, (916) 808-5607; Brad Wasson, Revenue Manager (916)808-5724

Presenter: J oy Patterson, Principal Planner, (916) 808-5607

Department: Community Development Department/Finance

Division: Planning/Revenue Administration

Dept ID: 21001221/06001211

Attachments:01 Description/Analysis02 Background03 Status of the 34 Registered Medical Marijuana Dispensaries – May 201304 Map of Operating Registered Medical Marijuana Dispensaries – May 2013

Submitted By:

Adobe Signature:

Law and LegislationCommittee Report

915 I Street, 1st Floor

www.CityofSacramento.org

Joy D. PattersonDigitally signed by Joy D. Patterson

DN: cn=Joy D. Patterson, o=Community

Development Department, ou=Planning Division,

[email protected], c=US

Date: 2013.05.24 09:18:39 -07'00'



Approved By:

Adobe Signature:Max Fernandez

Digitally signed by Max Fernandez

DN: cn=Max Fernandez, o=Community Development

Department, ou=Administration,[email protected], c=US

Date: 2013.05.28 09:28:53 -07'00'



Attachment 01 – Descript ion/Analysis

Issue: The current medical marijuana regulations permit dispensaries that were registered with the

city andoperating on October 26, 2010 to apply for a conditional use permit at their registered

location even if the location does not meet the sensitive use distance requirements found in the

zoning code. However, if a dispensary proposes to relocate from its registered location, itmust meet

the distance requirements from sensitive uses found in the code. In the past two and one-half years

several of the original registered dispensaries have had to leave their original location. Many have

found it difficult to find a location that would meet all of the sensitive use requirements.

At the February 26, 2013 City Council meeting the council directed staff to explore options to amend

the code in relation to the sensitive use requirements. Staff met with a group of dispensary owners

organized by Council member Cohn on March 26, 2013 to discuss various alternative code

amendments (Attachment 02 – Background Information). Staff recommends that an ordinance

amendment be processed that would include sensitive use and distance requirements but also give

dispensaries the option of requesting a modification of the sensitive use distance requirement as part

of their conditional use permit application for the dispensary use. Amendments to title 5 of the city

code are also necessary to allow city staff to resume processing medical marijuana dispensary phasetwo permits.

Policy Considerations: The City Council has determined that it supports the location of medical

marijuana dispensaries in the City with the proper regulatory permits. Modifications of current

regulations are necessary in order to allow dispensaries to continue to legally operate.

Economic Impacts: None.

Environmental Considerations: None.

Sustainability: No impact.

Commission/Committee Action: None.

Rationale for Recommendation: Development of ordinances amending the zoning code and

revenue timelines for permit approval will allow dispensaries to continue to operate in the City of

Sacramento.

Financial Considerations: None.

Emerging Small Business Development (ESBD): None.



Attachment 02 – Background

The Zoning Code regulations require that medical marijuana dispensaries meet the following distance

requirements:

x 300 feet from residential zoned property

x 600 feet from a child care center, child care-family day care home, youth oriented facility,

church/faith congregation, substance abuse center, movie theater/cinema, tobacco store

x 1,000 feet from another medical marijuana dispensary

x 1,000 feet from a park or a school; however, as part of the conditional use permit approval

process for the dispensary, the dispensary applicant can request that this distance requirement

be reduced by the Planning and Design Commission. The commission, however, cannot

reduce the distance below 600 feet.

An exception is made for existing dispensaries that registered with the City of Sacramento by J uly 27,

2010 and were operating at their registered location on October 26, 2010 (Title 17.24.050.85). There

are 34 dispensaries that registered with the city. Many of the registered dispensary locations do not

meet all the distance requirements. However, the registered dispensaries are allowed to apply for a

conditional use permit for the dispensary at this location.

Currently, of the 34 dispensaries, 32 received Phase I permits from the Revenue Division and two

closed. Of the 32 with phase one permits, 20 are open. Four of the 20 have relocated from their

original location. If a dispensary relocates from its original site thenew site must meet the distance

requirements. These four dispensaries were able to find locations that met the criteria listed above.

Fourteen of the registered dispensaries are not operating. Several of these dispensaries have

indicated to city staff that they would like to be open but cannot find a new location that meets all of

the distance requirements. They have asked if there is some way that the existing ordinance could

be modified to help them find new location.

On March 28, 2013, Council Member Steve Cohn held a stakeholders meeting with several of the

medical marijuana dispensaries and other interested parties. Persons in attendance and city staff

looked at various alternatives to the existing code for the registered dispensaries including:



1. Amending the Code so that a dispensary can request, as part of the conditional use

permit, to be less than the required distance from the sensitive use (except for parks

and schools, minimum distance cannot be less than 600 feet).

a. This is staff’s preferred alternative. The amendment would be similar to the most

recent amendment to the Code which requires a distance of 1,000 feet from a

park or school but allows a dispensary applicant to request to reduce the

distance to a minimum of 600 feet as part of the conditional use permit review.

The applicant would provide information as part of the conditional use permit

request to indicate why it would be appropriate to deviate from the distance

requirement (for example, a levee is located between the dispensary and the

sensitive use).

2. Reduce the distance requirement for stated in the Zoning Code for sensitive uses (for

example, reduce the 600 foot requirement from a youth oriented facility to 300 feet).a. The City Council put a lot of thought in to the sensitive use list and not enough

conditional use permits have been reviewed for staff to recommend reducing the

existing distance requirements. Distances would still be evaluated under option

1, with the applicant providing information as to what the sensitive use was and

how it would not be detrimental for the facility to be located within the minimum

radius.

3. Eliminate some of the sensitive uses.

a. Again, the City Council put a lot of thought in to the list and not enough

conditional use permits have been reviewed for staff to recommend eliminating

uses from the list.

4. Measure door to door instead of property line to property line when measuring

distances.

a. Staff does not recommend this modification. All radiuses in the Zoning Code for

use permits and noticing are property line to property line. There is too much

uncertainty in determining what doors of what uses would be measured and

more room for error.

5. Allow a dispensary to move within a certain radius of their original registered location

without having to meet the distance requirement.

a. It would be difficult to determine what that radius should be. For example, a

move of 1000 feet could put a facility within a radius of several sensitive uses



where the location where the dispensary is registered may only be within a radius

of one use at their current location.

6. Analyze natural barriers and man-made barriers and allow the dispensary when a

barrier is between a dispensary and a sensitive use.

a. Man-made and natural barriers can be used as justification of a reductionof the

radius as part of option 1.

7. Do not require the original 34 registered dispensaries to comply with the location criteria

in their registered location and any new proposed location.

a. Staff does not recommend this option for the reasons discussed in options 3 and

4 above.

In summary, staff recommends that any reduction in the sensitive use distance requirement from a

medical marijuana dispensarybe explained by the applicant and considered as part of the conditional

use permit application for the site. This would allow the original 34 dispensaries to request to locateat a different site as part of their conditional use permit review process. Staff recommends that the

Law and Legislation Committee direct staff to prepare a City Code amendment that allows for

reduction of the sensitive use distance requirement for the original 34 registered dispensaries as part

of the conditional use permit.

In addition to amending the sensitive use requirements for conditional use permits, city staff

recommends that the city resume processing medical marijuana dispensary permits. In November of

2011 the city stopped processing dispensary permits due to the uncertain state of the law and federal

enforcement actions in the fall of 2011. On May 6, 2013, the California Supreme Court issued a

decision in City of Riverside v. Inland Empire Patient’s Health and Wellness Center Inc. that the

Compassionate Use Act of 1996 and Medical Marijuana Program of 2003 did not preempt the ability

of cities and counties to regulate medical marijuana dispensaries

As a result of the California Supreme Court’s decision, staff recommends that the City of Sacramento

repeal interim ordinance 2012-041 and begin to process conditional use permits and phase two

permits for medical marijuana dispensaries. Currently pursuant to ordinance 2012-041, all

dispensaries with phase one permits are required to apply for phase two applications by November

12, 2013 and are permitted to operate without a phase two permit until February 11, 2014. Staff

recommends that theCity Council repeal ordinance 2012-041 and provide new deadlines in Title 5 of

the Sacramento City Code related to processing. Staff recommends that the deadline to file for a



phase two application be extended to March 31, 2014 and the deadline to have all permits approved

(conditional use permit and phase two permit) and continue operation is J une 30, 2014.



Attachment 03 – Status of the 34 Registered Medical Marijuana Dispensaries – May 2013

OPEN (20 dispensaries)Cana Care Inc., 320 Harris Ave., Suite GDoctor’s Orders, 1704 Main Ave.

True Compassion (River City Wellness Collective), 135 Main Avenue (previously 3830Northgate Blvd.)River City Phoenix, 1508 El Camino Ave.Valley Health Options, 1421 Auburn Blvd.Golden, 1030 J oellis (previously J Street Wellness Collective, 2321 J Street, Suite A )

A Therapeutic Alternative, 3015 H StreetTwo Rivers/Roseville Gold/J’s Collective, 315 North 10th Street

Al l About Wel lness, 1900 19th Street (Approved by Planning Commission 9/22/11) Abatin Wellness Inc. (Capitol Wellness Inc.), 2100 29th StreetDelta Health & Wellness, 2418 17th StreetNor Cal Alternative Healing, 515 Broadway

Northstar Holistic Collective, 1236 C StreetSouth Sacramento Care Center, 114A Otto CircleFlorin Wellness Center Inc., 7047 South Land Park DriveHorizon Nonprofit Collective, 3600 Power Inn Road, Suite 1AHugs Alternative Care LLC, 2035 Stockton Blvd.Mad Medic ine (formerly CC101), 6435 Florin Perkins RoadCNAA California (aka Trip le C Collective), 8112 Alpine Ave. (previously 2150 Bell Ave.)Cloud 9 5711 Florin Perkins Road (previously P Street Health Center, 2012 P Street),

CLOSED (14 dispensaries)Didacus Flower Company (aka Grass), 4381 Gateway Park Blvd, #560

One Love Wellness (aka River City Cooperative Corporation), 1841 El Camino Ave.Medizen (aka East Bay Health Solut ions, Cherry Orchard), 2201 Northgate Blvd, Suite HCapitol Wellness Inc., 2400 14th StreetGreen Door (aka Sara Jane & Co. Cooperative Inc.), 908 21st StreetFruitridge Health & Wellness Collective, 2831 Fruitridge Rd, Suite EGreen Solutions, 1404 28th Street12 Hour Care Collective, 6666 Fruitridge Road, Suite C

Alternative Medical Center , 8665 Folsom Blvd.Power Inn Wellness (aka Sacsterdam), 7551 14th Ave., Unit DR & R Coffee & Collective, Quinta CourtEl Camino Wellness Collective, 2511 Connie Drive (Approved by Planning Commission

9/22/11)Unity, 1832 Tribute Road, Suite E (Approved by Planning Commission 8/11/11)Sacramento Holistic Healing Center/Grass, 3015 H Street (this new location did not meetsensitive use criteria, closed. Registered location is 2014 10th Street)



Attachment 04 - Map of Operat ing Registered Medical Marijuana Dispensaries – May 2013

LegendRegistered Medical

;l!• Marijuana Dispensary(20 locations)

1,000 Foot RacfiUS arOlUldMedical Marijuana

DispensaJY Property

Wrthin 30 0 Feet of aResidential ZonedProperty and/or 1 000

Feet of a Pubfic Pari<or Private, Public,

Charter School

Registered MedicalMarijuana Dispensaries

May 2013

staff recommendations for medical marijuana dispensaries a

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