Discussion & Direction - Commercial Cannabis Overlay District Amendments - D&D - Staff Report
STAFF REPORT
Meeting Date: July 25, 2023
Agency: City of Belmont
Staff Contact: Carlos de Melo, Community Development Director, (650) 595-7440 [email protected]
Agenda Title: Commercial Cannabis Overlay General Plan/Zoning Amendments – South El Camino Real
Agenda Action: Discussion & Direction
Recommendation
It is recommended that the City Council consider the information presented in this report and provide direction to staff regarding facilitating potential Commercial Cannabis Overlay General Plan/Zoning Amendments for certain properties along South El Camino Real.
Strategic Focus Area
Economic Development and Housing
Background
Each year the City Council convenes in advance of the new fiscal year to review and amend as necessary City Council goals and update the City’s Strategic Plan to fulfill the goals. In Spring 2021, the City considered several options for diversifying its revenues as part of a strategy aimed at promoting long-term fiscal sustainability. One of the potential new revenue sources identified during that discussion was the reconsideration of local regulation of commercial cannabis activities. The Council subsequently authorized staff to conduct preliminary assessment of policy options available to the City for consideration at future study sessions.
Previously, at its April 13, 2021, November 3, 2021, and March 22, 2022, Study Sessions, the City Council provided feedback to staff regarding establishing cannabis businesses (commercial retail & distribution) within certain areas of Belmont. At their April 12, 2022 meeting, the City Council: 1) conducted a public hearing, and 2) introduced a Draft Ordinance which embodied a number of necessary Belmont Zoning Ordinance (BZO) Amendments to implement the development standards applicable within certain proposed Cannabis Overlay Districts, and corresponding Zoning Basemap Designation Amendments to establish the overlay location areas where Cannabis Retail & Distribution – S-3; and Distribution Only – S-4 would be permitted.
At their June 7, 2022 meeting, the Planning Commission conducted a public hearing and considered the Draft Ordinance regarding the BZO Amendments to implement the development standards applicable within the proposed Cannabis Overlay Districts and corresponding Zoning Basemap Amendments for the proposed S-3 & S-4 Overlay Districts. Significant public testimony was heard during the June 7, 2022, Commission meeting (both in-person or through virtual participation). Through the public participation 124
Discussion & Direction - Commercial Cannabis Overlay District Amendments - D&D - Staff Report process concerns were raised with the proposed amendments and urged that the City take a cautious approach to its implementation, or at a minimum, reconsider the boundaries of the proposed overlay districts. The Commission discussed the matter in great detail and offered recommendations to reconsider the scope/location of the potential Overlay Districts. These recommendations centered on:
• Reconsidering the proposed S-3 Cannabis Retail & Distribution Combining District boundary for all proposed properties fronting along Ralston Avenue (both sides of street). • Reconsidering the S-3 Cannabis Retail & Distribution Combining District and S-4 Cannabis Distribution Combining District boundaries from Masonic Way to the northern border (of San Mateo).
• Reconsidering the S-3 District boundary along both the west and east side Old County Road properties at the Ralston Avenue intersection.
A majority of the Commission recommended maintaining the proposed S-3 Cannabis Retail & Distribution Combining District for the proposed properties along El Camino Real (ECR) - both east & west side fronting properties.
At their July 12, 2022, meeting, the City Council conducted a public hearing and considered the Draft Ordinance regarding the BZO Amendments to implement the development standards applicable within the proposed Cannabis Overlay Districts and corresponding Zoning Basemap Amendments for the proposed S-3 & S-4 Overlay Districts, including the Planning Commission recommendations to scale back the areas for potential Overlay District zoning. Significant public testimony was also heard during the July 12, 2022 Council meeting with a majority of public comments expressing desire to see the zoning amendments proposal abandoned, or at a minimum, the boundaries of the proposed overlay districts modified. At the conclusion of Council discussion, the Council did not take action on the proposed amendments and continued the project, pending further analysis and public outreach.
At the City Council’s Strategic Planning Workshop in March 2023, staff reviewed a range of initiatives under consideration and future action centering on the City’s strategic focus areas (Infrastructure & Mobility, Economic Development & Housing, Fiscal & Organizational Stability, Public Safety, and Quality of Life). During the course of Council discussion on these topic areas, the Council reiterated a commitment to enhancing organizational and fiscal stability to provide the highest levels of quality of life services important to the community by maximizing existing sources of revenue and identifying new revenue sources to maintain financial stability for the City. The Council further indicated interest in continued exploration of potential Cannabis use regulations within reason, and in appropriate locations in the City.
Analysis
As a follow up to past Council discussion, and previous Cannabis use proposals, staff is bringing forward this item seeking Council discussion and direction to establish scaled back Overlay General Plan/Zoning for Cannabis Retail uses focusing on the retail area along South El Camino Real. As such, a modified proposal for General Plan, Zoning Text, and Basemap Amendments would center on the following:
125
Discussion & Direction - Commercial Cannabis Overlay District Amendments - D&D - Staff Report
1. Facilitate General Plan Amendments that provide goal/policy guidance for Commercial Cannabis uses for the General Plan designated properties along South El Camino Real (ECR) - both east & west side fronting properties from O’Neill Avenue to the border of San Carlos.
2. Facilitate a process to allow S-3 Cannabis Retail & Distribution Combining District Zoning on a property-by-property basis, upon request, located along South El Camino Real (ECR) - both east & west side fronting properties from O’Neill Avenue to the border of San Carlos – see Attachment A.
3. Modify Belmont Zoning Ordinance (BZO) Section 3 to list the new combining district; Section 9 modifications would define Cannabis Retail & Distribution as permitted uses in the subject overlay combining district; and Section 10 (Planning Procedures) regarding Zoning Administrator (ZA) review authority of a Conditional Use Permit for the proposed uses.
4. Modify Section 21 (Combining Districts) to add the specific S-3 Overlay Zone and the pertinent zoning standards:
• Cannabis Retail & Distribution Definitions
• Zoning Administrator Review Authority
• Use Permit Requirements
• Development Regulations
• Performance Standards
• Reference to the Zoning Basemap for the location of the S-3 Overlay District Staff is seeking Council feedback and direction on allowance of a maximum of up to two commercial retail cannabis use permits, and a maximum of up to two cannabis distribution use permits, as lawfully permitted via the Cannabis Regulatory Ordinance, and a Zoning Administrator Use Permit review process.
Retail cannabis uses have the potential to bring additional people to downtown/commercial and mixeduse areas during both the daytime and early evening hours. Cannabis distribution uses can be compatible with other permitted warehouse and distribution uses. Establishment of these new uses would require approval of a Conditional Use Permit (CUP) to address potential light, glare, noise, traffic, and parking issues, and to ensure that these projects conform to specific development standards related to total number of permitted dispensaries, distance between dispensaries from schools, parks, and daycare facilities, hours of operation, customer management, and odor. Design Review would also be required for any new building or exterior building alteration to ensure projects are consistent with established requirements for building design, signage, and landscaping.
In addition to land use controls, cannabis business owners and operators would be subject to qualification and operational regulations under a business regulation ordinance to be developed. The business regulation ordinance would likely include Police Department review and approval of operational/safety plans and confirming compliance with state licensing to ensure that these uses operate in accordance with all applicable laws (i.e., use of products on site or in public places would be prohibited, security personnel would be required to prevent sales to minors and loitering, cannabis products and graphics representing cannabis products may not be visible from the exterior of the facility, and products must be stored and sold from inside a completely enclosed building). 126
Discussion & Direction - Commercial Cannabis Overlay District Amendments - D&D - Staff Report Recent Proposals
Since May 2023, the City has received two proposals for establishment of Cannabis Retail Dispensaries for certain properties along south El Camino Real. Staff has not reviewed these proposals in detail.
Staff is bringing this Discussion & Direction item for Council consideration and confirmation of policy interest before allocating staff resources towards review and legal analysis of the proposals and next steps.
Environmental Assessment – Proposed General Plan Amendments, Cannabis Retail/Distribution Ordinance, and corresponding Zoning Basemap Overlay Zone amendments are subject to the provisions of the California Environmental Quality Act (“CEQA”). In conjunction with potential review/recommendation of the subject amendments, staff will review the environmental effects of the project to determine whether the project is within the scope of the City’s 2017 General Plan/Belmont Village Specific Plan Programmatic Environmental Impact Report (EIR) and whether additional environmental documentation may be necessary under CEQA.
Next Steps
1. Should Council concur with the approach for potential General Plan Amendments, and Zoning Ordinance/Basemap Amendments for south El Camino Real to create a Commercial Cannabis Combining District (Zoning Overlay), staff would then engage in public outreach in advance of returning the Amendments for consideration at future Planning Commission and City Council public hearings.
2. Concurrently, staff will begin preparing a Commercial Cannabis Regulatory Ordinance for Council consideration.
Alternatives
1. Refer back to staff for further information.
2. Take no action.
Attachments
A. Potential Zoning Overlay Amendment Area – South El Camino Real B. Previous Zoning Overlay Amendment Areas – July 2022
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:
Consultant funding and staff resources to explore local regulation of commercial cannabis activities have been incorporated in the current fiscal year’s budget in the General Fund. Local regulation of commercial cannabis activities can provide an important source of locally controlled General Fund revenue.
Source: Purpose: Public Outreach:
Staff Council Vision/Priority Posting of Agenda
127
Esri Community Maps Contributors, Redwood City, County of San Mateo, California, California State Parks, © OpenStreetMap, Microsoft, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, US Census Bureau, USDA S-3 Retail & Distribution
1480 1409
1425
1557
1306
1425
1417
1469
1441
1465
1513
1521
1569
1559
1595
1540
1533 1584
1560
1359
1406
1510
1440
1325
1320
1314
1318
1340
1460 1520
1553
1300
1328
1316
1300
1336
1360
1433
1460
1397
1324
1322
1324
1332
1344
701
1405
1360
1340
1416
875
1404
1400
1408
1428
1404
1364 1408
900
1455 1425 1444 1471
1453
1464
1400 1410
950
1429
1600
1650
1300
1350
700
1416
1424 951
1456
1432
1424
1499
1448
1438
1440
1437
1445
1500
1440 1465
1485
1408
1520
1480
1504
1400
1409
1468 1501
1501
1449
1441
1432
1417
1457
1433 1538
1500 1531 1456
1432
1070 1539
1528
1579
1583 1536
951
1540
1529 1537
1591
1573
1549
1561
1564
1250
1120
1601
1545
1556
1500 1515
1521
1051 1587
1561
1501 1516
910 1509
1524
1576
1540
1552
1517 1500 1508
1525 1570
1569
1612
1541 1540
1516
1518 1588
1546
1548
1517
1541
1557
1520
1600
1565
1512
1533 1556
1566
1577
1557
1001
1525
1549
950
969
949
1625
970
1608
1560
1580 1530
1564
1617
1627
1628
1645
1565
1602 1041
1612
1572 1621
1572
1633
1021
1581
1516
1588 1601
1524
1536
1345
1329
1306
625
615
1421
605
555
435
539
525
1309 550
604
477
545
1337
1442
1325
1335
1473
1511
800
601
608
1335
600
608
F
0 125 250 500 750 1,000 Feet
Potential Overlay General Plan/Zoning Amendments
128
El Camino Real
Hiller Street
Old County Road
Alley
South Road
Shoreway Road
Middle Road
Fifth Avenue
Chesterton Avenue
Ralston Avenue
Holly Road
O'Neill Avenue
Civic Lane
North Road
Broadway
Oxford Way
Ruth Avenue
Anita Avenue
Wessex Way
Granada Street
Harbor Boulevard
Masonic Way
Molitor Road
Irwin Street
Davey Glen Road
Elmer Street
Hill Street
Kedith Street
Sem Lane
Island Parkway
Judson Street
Cambridge Street
Furlong Street
Clipper Drive
Seagate Way Roxbury Way
Vine Street
Yorkshire Way
Miramar Terrace Cornish Way
E Street
F Street
Emmett Street
Sixth Avenue
Virginia Avenue
King Street
Middlesex Way
Dale View Avenue
Prospect Street
Briarfield Way
Oxford Court
Hainline Drive
Vannier Drive
Cormorant Drive
Waltermire Street
Cypress Avenue
Anita Court
Julia Court
Alley
Previous Overlay Zone Amendments - July 2022
S-4 - Distribution only
S-3 - Retail & Distribution
129