Agenda packet — Coachella City Council, June 1, 2022

Council Chambers, Hearing Room
1515 6th Street, Coachella, California
(760) 398-3502  www.coachella.org
AGENDA

OF A REGULAR MEETING
OF THE

CITY OF COACHELLA

PLANNING COMMISSION
June 01, 2022
6:00 PM
PURSUANT ASSEMBLY BILL 361, ALONG WITH THE GOVERNOR’S STATE OF EMERGENCY DECLARATION ISSUED ON MARCH 4, 2020, THIS MEETING MAY BE CONDUCTED VIA TELECONFERENCE.

If you would like to attend the meeting via zoom, here is the link:
https://us02web.zoom.us/j/84544257915?pwd=VTdHWitpYVdOUk1NQW8vZ1pqUm0zQT09 Or one tap mobile :

Us: +16699006833,, 84544257915#,,,,* 380084# US
Or telephone:

Us: +1 669 900 6833
Webinar ID: 845 4425 7915
Passcode: 380084
Spanish: El idioma español está disponible en Zoom seleccionado la opción en la parte de abajo de la pantalla Public comments may be received via email, telephonically, or via zoom with a limit of 250 words, or three minutes:

In real time:

If participating in real time via zoom or phone, during the public comment period, use the “raise hand” function on your computer, or when using a phone, participants can raise their hand by pressing *9 on the keypad.

In writing:

Written comments may be submitted to the commission electronically via email to [email protected]. Transmittal prior to the start of the meeting is required. All written comments received will be forwarded to the commission and entered into the record.

IF YOU WISH, YOU MAY LEAVE A MESSAGE AT (760) 398-3102, EXTENSION 122, BEFORE 4:00 P.M. ON THE DAY OF THE MEETING.

CALL TO ORDER:
1 Agenda Planning Commission June 01, 2022

Page 2 ends

PLEDGE OF ALLEGIANCE:

ROLL CALL:

APPROVAL OF AGENDA:
“At this time the Commission may announce any items being pulled from the agenda or continued to another date or request the moving of an item on the agenda.”
APPROVAL OF THE MINUTES:

1. Planning Commission Meeting Minutes - May 18, 2022
WRITTEN COMMUNICATIONS:

PUBLIC COMMENTS (NON-AGENDA ITEMS):
“The public may address the Commission on any item of interest to the public that is not on the agenda, but is within the subject matter jurisdiction thereof. Please limit your comments to three (3) minutes.” REPORTS AND REQUESTS:

NON-HEARING ITEMS:

PUBLIC HEARING CALENDAR (QUASI-JUDICIAL):

2. Zoning Ordinance Amendment No. 22-03 - Cannabis Business Streamline Code Amendments to amend Coachella Municipal Code Title 5 and 17 regarding cannabis business zoning and operation in the City.

City-Initiated (Continued from May 18, 2022). City-Initiated.

INFORMATIONAL:

ADJOURNMENT:

Complete Agenda Packets are available for public inspection in the Planning Department at 53-990 Enterprise Way, Coachella, California, and on the City’s website www.coachella.org.

THIS MEETING IS ACCESSIBLE TO PERSONS WITH DISABILITIES 2 Agenda Planning Commission June 01, 2022

Page 3 ends

Council Chambers, Hearing Room
1515 6th Street, Coachella, California
(760) 398-3502  www.coachella.org
AGENDA

OF A REGULAR MEETING
OF THE

CITY OF COACHELLA

PLANNING COMMISSION
1 de Junio, 2022
6:00 PM
DE ACUERDO CON EL PROYECTO DE LEY 361 DE LA ASAMBLEA, JUNTO CON LA DECLARACIÓN DEL ESTADO DE EMERGENCIA DEL GOBERNADOR EMITIDA EL 4 DE MARZO DE 2020, ESTA REUNIÓN SE PODRÁ REALIZAR POR TELECONFERENCIA.

Si desea asistir a la reunión a través de zoom, aquí está el enlace:
https://us02web.zoom.us/j/84544257915?pwd=VTdHWitpYVdOUk1NQW8vZ1pqUm0zQT09 O one tap mobile:

Us: +16699006833,, 84544257915#,,,,* 380084# US
O teléfono:

Us: +1 669 900 6833
ID del webinar: 845 4425 7915
Código de acceso: 380084
Español: El idioma español está disponible en Zoom seleccionado la opción en la parte de abajo de la pantalla Los comentarios públicos se pueden recibir por correo electrónico, por teléfono o por zoom con un límite de 250 palabras o tres minutos:

En vivo:

Si participa en vivo a través de zoom o teléfono, durante el período de comentarios públicos, use la función "levantar la mano" en su computadora, o cuando use un teléfono, los participantes pueden levantar la mano presionando *9 en el teclado.

Por escrito:

Los comentarios escritos pueden enviarse a la comisión electrónicamente por correo electrónico a [email protected]. Se requiere la transmisión antes del inicio de la reunión. Todos los comentarios escritos recibidos serán enviados a la comisión e ingresados en el registro.

SI LO DESEA, PUEDE DEJAR UN MENSAJE EN EL (760) 398-3102, EXTENSIÓN 122, ANTES DE LAS 4:00 P.M. DEL DÍA DE LA REUNIÓN.
3 Agenda Planning Commission June 01, 2022

Page 4 ends

LLAMADO AL ORDEN:

JURAMENTO A LA BANDERA:

PASE DE LISTA:

ORDEN DEL DÍA ESPECIAL
APROBACIÓN DE LA AGENDA:
“En este momento, la Comisión puede anunciar cualquier punto que está siendo retirado de la agenda o continuado a otra fecha o solicitar el traslado de un punto de la agenda”.

APROBACION DE LAS ACTAS:

1. Borrador de las Actas de la Comisión de Planificación – 18 de Mayo, 2022 COMUNICACIONES ESCRITAS:

COMENTARIOS DEL PÚBLICO (PUNTOS QUE NO ESTÁN EN LA AGENDA):
“El público puede dirigirse a la Comisión sobre cualquier tema de interés para el público que no esté en la agenda, pero que esté dentro de la jurisdicción de la materia de la misma. Por favor limite sus comentarios a tres (3) minutos”.

INFORMES Y SOLICITUDES:

PUNTOS QUE NO SON DE AUDIENCIA:

2. PH - ZOA 22-03: Enmiendas al Código de Optimización de Negocios de Marihuana para enmendar el título 5 y 17 del Código Municipal de Coachella con respecto a la zonificación y operación de negocios de marihuana en la ciudad. Iniciado por la ciudad (Continuación del 18 de mayo de 2022.

CALENDARIO DE AUDIENCIAS PÚBLICAS (CUASI-JUDICIAL):

INFORMATIVO:

SE SUSPENDE LA SESIÓN:

Los paquetes completos de la agenda están disponibles para inspección pública en el Departamento de Servicios de Desarrollo en 53-990 Enterprise Way, Coachella, California, y en el sitio web de la ciudad www.coachella.org.

ESTA REUNIÓN ES ACCESIBLE PARA PERSONAS CON DISCAPACIDAD 4 Agenda Planning Commission June 01, 2022

Page 5 ends

5 Council Chambers, Hearing Room
1515 6th Street, Coachella, California
(760) 398-3502  www.coachella.org

MINUTES

OF A REGULAR MEETING
OF THE

CITY OF COACHELLA

PLANNING COMMISSION
May 18, 2022
6:00 PM
PURSUANT ASSEMBLY BILL 361, ALONG WITH THE GOVERNOR’S STATE OF EMERGENCY DECLARATION ISSUED ON MARCH 4, 2020, THIS MEETING MAY BE CONDUCTED VIA TELECONFERENCE.

If you would like to attend the meeting via zoom, here is the link:
https://us02web.zoom.us/j/84544257915?pwd=VTdHWitpYVdOUk1NQW8vZ1pqUm0zQT09 Or one tap mobile :

Us: +16699006833,, 84544257915#,,,,* 380084# US
Or telephone:

Us: +1 669 900 6833
Webinar ID: 845 4425 7915
Passcode: 380084
Public comments may be received via email, telephonically, or via zoom with a limit of 250 words, or three minutes:

In real time:

In writing:

Minutes Planning Commission May 18, 2022

Page 2 ends

IF YOU WISH, YOU MAY LEAVE A MESSAGE AT (760) 398-3102, EXTENSION 122, BEFORE 4:00 P.M. ON THE DAY OF THE MEETING.

CALL TO ORDER: 6:03 P.M.

PLEDGE OF ALLEGIANCE:

GABRIEL PEREZ
ROLL CALL:

Commissioners Present: Alternate Commissioner Gutierrez, Commissioner Leal, Commissioner Gonzalez, Commissioner Figueroa, Vice Chair Navarrete, Chair Virgen.

Staff Present: *Gabriel Perez, Development Services Director *Henry Castillo, Deputy City Attorney
APPROVAL OF AGENDA:
“At this time the Commission may announce any items being pulled from the agenda or continued to another date or request the moving of an item on the agenda.”

IT WAS MOVED BY COMMISSIONER FIGUEROA AND SECOND BY COMISSIONER NAVARRETE TO APPROVE THE AGENDA WITH MOVING ITEM NUMBER FIVE (5) BEFORE NUMBER FOUR (4).

Approved by the following roll call vote:

AYES: Commissioner Leal, Commissioner Gonzalez, Commissioner Figueroa, Vice Chair Navarrete Chair Virgen.

NOES: None.

ABSTAIN: None.

ABSENT: None.

APPROVAL OF THE MINUTES:

1. Planning Commission Meeting Minutes – May 4, 2022.

IT WAS MOVED BY VICE CHAIR NAVARRETE AND SECONDED BY COMMISSIONER FIGUEROA TO APPROVE THE MINUTES.

Approved by the following roll call vote:

AYES: Commissioner Leal, Commissioner Gonzalez, Commissioner Figueroa, Vice Chair Navarrete.

NOES: None.

ABSTAIN: Chair Virgen.

ABSENT: None.

WRITTEN COMMUNICATIONS:
7 Item 1.

Minutes Planning Commission May 18, 2022

Page 3 ends

None.

NON-HEARING ITEMS:

None.

PUBLIC HEARING CALENDAR (QUASI-JUDICIAL):

2. Gunther Investments, LLC – Interim Outdoor Cannabis Cultivation - Conditional Use Permit 348 to allow interim outdoor cannabis cultivation on a 38.48-acre site located at the southwest corner of Avenue 50 and Fillmore Street. (APN 763-070-022). Brandon Calandri (Applicant)-Withdrawal Gabriel Perez, Development Services Director narrated a brief power point presentation for the item. A copy of the presentation is on file in the Planning Division. Applicant requested withdrawal of their application. No further action by the Planning Commission needed.

3. DAFCO III, LLC – Interim Outdoor Cannabis Cultivation – Conditional Use Permit 349 to allow interim outdoor cannabis cultivation on a total of 199.39 acres site located at the northeast corner of Fillmore Street and 52nd Avenue. (APN: 763-090-002, 763-100-003, 763-100-010). Brandon Calandri,(Applicant)-Withdrawal.

Gabriel Perez, Development Services Director narrated a brief power point presentation for the item. A copy of the presentation is on file in the Planning Division. Applicant requested withdrawal of their application. No further action by the Planning Commission needed.

4. Tentative Parcel Map No. 38218, Conditional Use Permit No. 354, Architectural Review No. 21-07 for the construction of two 25,750 sq. ft. industrial building to create up to 32 warehouse condos and 8 office condos at 53-457 and 53-459 Enterprise Way. Applicant: JJWR, LLC.

Gabriel Perez, Development Services Director narrated a brief power point presentation for the item. A copy of the presentation is on file in the Planning Division.

Public Hearing Opened at 6:26 p.m. by Chair Virgen.

Benjamin Eagan, Civil Engineer and Representative, for Applicant Jason Williams, made himself available for questions.

Jason Williams, Applicant, made himself available for questions. 8 Item 1.

Minutes Planning Commission May 18, 2022

Page 4 ends

Public Hearing Closed at 6:44 p.m. by Chair Virgen.

IT WAS MOVED BY COMMISSIONER GONZALEZ AND SECONDED BY COMMISSIONER FIGUEROA STAFF RECOMMENDATION ON ADDOPTING RESOLUTION PC 2022-17, TENTATIVE PARCEL MAP NO. 38218, RESOLUTION 2022-18, CONDITIONAL USE PERMIT 354, ARCHITECTURAL REVIEW NO. 2107 RECOMMENDING APPROVAL OF THE INDUSTRIAL DEVELOPMENT AS PROPOSED.

Approved by the following roll call vote:

AYES: Commissioner Leal, Commissioner Gonzalez, Commissioner Figueroa, Vice Chair Navarrete Chair Virgen.

NOES: None.

ABSTAIN: None.

ABSENT: None.

5. ZOA 22-01 - Cannabis Business Streamline Code Amendments to amend Coachella Municipal Code Title 5 and 17 regarding cannabis business zoning and operation in the City. City-Initiated (Continued from May 4, 2022)
Gabriel Perez, Development Services Director requested of the Planning Commission that item 5 be continued to the June 1, 2022 Planning Commission meeting to reconcile code amendment changes with the City Attorney.

IT WAS MOVED BY COMMISSIONER GONZALEZ AND SECONDED BY COMMISSIONER

NAVARRETE STAFF RECOMMENDS THE PLANNING COMMISSION TO APPROVE THE CONTINUATION OF ITEM NUMBER FIVE (5) TO THE NEXT PLANNING COMMISSION MEETING OF JUNE 1, 2022.

Approved by the following roll call vote:

AYES: Commissioner Leal, Commissioner Gonzalez, Commissioner Figueroa, Vice Chair Navarrete Chair Virgen.

NOES: None.

ABSTAIN: None.

ABSENT: None.

INFORMATIONAL:

Gabriel Perez, Development Services Director, announced the  Tripoli Mixeduse project was approved by Council.
 Introduction of a new staff member Eva Lara as Planning Technician.  City Online Development Map.

ADJOURNMENT: 6:58 P.M.

Respectfully Submitted by,
9 Item 1.

Minutes Planning Commission May 18, 2022

Page 5 ends

________________________
Gabriel Perez
Planning Commission Secretary
Complete Agenda Packets are available for public inspection in the Development Services Department at 53-990 Enterprise Way, Coachella, California, and on the City’s website www.coachella.org.

THIS MEETING IS ACCESSIBLE TO PERSONS WITH DISABILITIES 10 Item 1.

STAFF REPORT
6/1/2022
TO: Planning Commission Chair and Commissioners
FROM: Gabriel Perez, Development Services Director
SUBJECT: Zoning Ordinance Amendment No. 22-03 - Cannabis Business Streamline Code Amendments to amend Coachella Municipal Code Title 5 and 17 regarding cannabis business zoning and operation in the City. City-Initiated (Continued from May 18, 2022). City-Initiated.

STAFF RECOMMENDATION:

Staff recommends that the Planning Commission review and adopt Resolution No. PC2022-14 recommending that the City Council (Council) approve an ordinance to amend the City’s Cannabis business zoning and operation regulations of the Coachella Municipal Code.

BACKGROUND:

In November of 2016, voters approved Proposition 64, otherwise known as the Control, Regulate, Tax Adult Use of Marijuana Act (“AUMA”) which legalized the adult use of cannabis and created a statutory framework for the state to regulate adult use of cannabis. Senate Bill 94, adopted on June 27, 2017, reconciled standards for medical cannabis with the standards for adult use cannabis activity under a single law, entitled Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). Since 2016, the City of Coachella acted to establish cannabis business regulations as follows:
 November 2016 - Cannabis Tax the voters in Coachella approved Measure II, which authorized the City to impose a cannabis tax of $15 per square foot on cultivation and manufacturing facilities and 6 percent of revenue on cannabis. The tax applies to both medicinal and nonmedicinal cannabis businesses, including retail cannabis businesses, regardless of whether the business is properly permitted by the City.  January 27, 2016 - Medical Cannabis Cultivation Facilities and Medical Cannabis Cultivation Regulatory Permits, (Zoning Ordinance Amendment ZOA No. 15-03) Council adopted Ordinance No. 1803, amending Section 17.24.020, amending Chapter 17.84, Medical Cannabis Dispensaries, creating Chapter 17.85 Medical Cannabis Cultivation Facilities, and amending Chapter 17.34 to allow commercial medicinal cannabis cultivation, manufacturing, testing, distribution, and transportation activities in the wrecking yard (M-W) zone on a site of a minimum of 5 acres, paved street frontage minimum of 250 ft, and 1,000 feet from any residential zone with a conditional use permit (“CUP”). Ordinance No. 1084 11 Item 2.
added Chapter 5.68 to the Coachella Municipal Code for medical cannabis cultivation regulatory permits.
 July 12, 2017 - Cannabis Testing Laboratories and Commercial Cannabis Activity Regulatory Permits Council adopted Ordinance No. 1108 (Zoning Ordinance Amendment 17-03), amending Chapters 17.26, 17.46 and 17.85, Commercial Cannabis Activity, regarding commercial cannabis activity zoning allowing cannabis testing laboratories with a CUP in MW, IP and C-G zones. Council also adopted Ordinance No. 1109 amending Chapter 5.68 of the Coachella Municipal Code regarding Cannabis Activity regulatory permits.  February 14, 2018 - Retail Cannabis Businesses (ZOA No. 17-05) Council adopted Ordinance No. 1114, amending Chapter 17.84, Retail Cannabis Businesses, and Chapter

17.85, Commercial Cannabis Activity, allowing retail cannabis businesses subject to a development agreement or Conditional Use Permit in the M-W Wrecking Yard Zone, the IP Industrial Overlay Zone, and the RC retail cannabis overlay zone subject to strict land use guidelines. Council also adopted Ordinance No. 1115 adding Chapter 17.47, RC Retail Cannabis Overlay Zone, to regulate the Retail Cannabis Overlay Zone specific to areas the City would like to see developed with new and thriving businesses (Sub-Zones # 1 and 2). The City took a conservative approach and kept these sub-areas small in size. A distance of 250 from public or private school (K-12), day care center or youth center was adopted.  July 10, 2019 - Commercial Cannabis Activity Amendments Council adopted Ordinance No. 1140 (ZOA No. 19-01), allowing retail cannabis in the Industrial Park overlay Zone, expanded Downtown Sub-Zone #1 and added Sub-Zone #3 Dillon Road Corridor applies to projects that are located along either side of Dillon Road, between State Highway 86 and Vista Del Norte; and have either a front or side lot line fronting Dillon Road or Camp Court. The ordinance also added microbusinesses with a CUP in the RC Overlay Zone, increased the number of retail cannabis businesses from four (4) to ten (10), and expanded the allowed area for retail cannabis businesses beyond the RC Overlay Zone to the M-W Zone and MS-IP Overlay Zone. Lastly, the Ordinance reduced the minimum project area size in the IP Overlay Zone from 30 acres to 10 acres.
 May 27, 2020 – Non-Storefront Retail Cannabis Business Code Amendments (ZOA No. 20-01) Council adopted Ordinance No. 1161 updating and clarifying Title 17 provisions and Ordinance No. 1162 amending Chapters 5.68 and 5.69 regarding retail cannabis businesses, specifically with regards to non-storefront retailers, non-storefront retail microbusinesses, storefront retail microbusinesses, and non-retail microbusinesses.  July 14, 2021 Interim Outdoor Cannabis Cultivation (ZOA No. 20-02) Council adopted Ordinance No. 1171 establishing regulation for outdoor cannabis cultivation in the agricultural areas of the City subject to certain zoning districts, a CUP with a maximum term of 4 years, minimum canopy size of 2 acres, and 1,000 feet from schools and youth centers.  December 8, 2021 - Interim Outdoor Cannabis Cultivation Amendments (ZOA No. 21- 04) Council adopted Ordinance No. 1188 removing the limitation of 2 acre canopy size and allowing limited cultivation lighting during winter months. 12 Item 2.
 February 23, 2022 New Tax Rate Structure Adopted Council acted to remove the square footage tax for cultivation and manufacturing, and charge cannabis businesses as follows:

Cultivation 2%, Retail 6%, Manufacturing 2%, Distribution 0%, and Testing 0%.

The City’s cannabis business regulations allow for a diverse mix of cannabis retail, cultivation (indoor and outdoor), distribution, retail, and testing businesses. In 2021, the cannabis tax revenues were $1,897,514, including $1,229,184 from cultivation, $636,130 from retail, and $32,125 from manufacturing. In 2021, a Cannabis Action Team was assembled of key City staff responsible for regulation and support of the local Cannabis businesses to assess progress of the City’s cannabis business program over the past 5 years. The City of Coachella was early to adopt a legal regulatory framework for cannabis businesses to operate in the City and took a conservative approach to cannabis business regulation. The Cannabis Action Team was able to identify opportunities for streamlining the City’s zoning and business regulation for cannabis operations with the goal of reducing processing times, costs, and providing greater regulatory clarity.

The Planning Commission first considered the subject Zoning Ordinance Amendment (ZOA) No. 22-03 on May 4, 2022 and requested a continuance in order to review additional information that includes:
 Revenues from Cannabis Businesses
 Housing Growth Data
 Schools Planned and CVUSD District Masterplan
 List of Map of Dispensaries
Staff was able to provide information related to Cannabis Business Revenues and a List/Map of Cannabis Dispensaries included in attachments 5 and 6. The Facilities Director for the Coachella Valley Unified indicated that they do not have maps of planned schools and staff is awaiting information related to CVUSD properties. The school information was not available by the publication of this report.

DISCUSSION/ANALYSIS:

The Cannabis Action Team evaluated the Cannabis zoning and business regulations of the Coachella Municipal Code and proposes several Municipal Code Amendments to Title 5, Business Licenses and Regulations, and Title 17, Zoning to streamline the City’s cannabis business program as follows:
 Remove the requirement of commercial cannabis or retail cannabis applicants to pursue a change of zone to apply either a Retail Cannabis RC Overlay or Industrial Park IP Overlay.

This would eliminate the need to process both a Change of Zone and a CUP, which requires public hearings at the Planning Commission and the City Council.  Eliminate Sub-Zones for retail cannabis businesses in Chapter 17.47, RC Retail Cannabis Overlay Zone, and allow them in any Commercial zones (C-N, Neighborhood Commercial, CG, General Commercial, C-T, Tourist Commercial Zone) in the City with a CUP, but subject to the 10 dispensary limit allowed in the Municipal Code. City staff believes this change would allow for greater feasibility for dispensaries to open within the 10 dispensary limit, while still 13 Item 2.
limited by any eligibility criteria established by Council for new retail cannabis business application rounds.
 Allow commercial cannabis activity permitted in Chapter 17.85, Commercial Cannabis Activity, to occur in M-S, Manufacturing Service or M-H, Heavy Industrial Zones subject to a CUP and eliminate the need to be located in one of 3 allowed Sub-areas. Currently, commercial cannabis activity is only allowed on M-S zoned properties with an IP Overlay rezoning in Sub-areas #6 (Downtown Expansion), #7 (South Employment District), or #10 (North Employment). The City receives many applications to allow commercial cannabis activity that require both a Change of Zone for IP Overlay and a rezoning from M-S to M-H zones despite the proposes locations within the eligible Sub-areas. Staff’s recommendation would allow commercial cannabis activity in M-S and M-H zones subject to 600-foot distance requirement from a residentially zoned lot. A map of the 600 foot distance from residential zones lots demonstrates that the eligible commercial cannabis activity locations would continue to be consistent with Sub-areas 6, 7, and 10, but would allow new commercial cannabis activity in industrial zones east of the 86 Expressway (Attachment 3).  Remove the requirement for a Development Agreement for retail cannabis businesses in Chapter 17.84, Retail Cannabis Businesses and for Commercial Cannabis Activity in Chapter

17.85. Staff conducted an assessment of existing Development Agreements for cannabis businesses in the City and determined that the development agreements mainly secure a taxation rate for cannabis business activity. This taxation rate in a development agreement is no longer required as the City has a citywide tax rate structure for cannabis businesses.

Development agreements could still be entered into voluntarily by applicants as many of the existing development agreements allow for maintaining approved permits activity for up to seven years.
 Reconcile the inconsistent distance requirement from residential zoned lots for cannabis businesses of 1,000 feet in the IP Overlay, Chapter 17.46 and Commercial Cannabis Activity, the Chapter 17.85, distance requirement of 600 feet.
 Eliminate the 250 foot paved street frontage and 5 acre lot size restrictions for Commercial Cannabis businesses in the M-W zone Chapter 17.85. The City has previously granted variances from these limitations. It is unclear why these limitations are necessary and Staff believes it is better to allow for more flexible standards than create a situation that requires variance approvals.
 Allow an expiration timeframe of two (2) years for CUPs and Architectural Review (AR).

Currently, CUPs and ARs expire after one year unless an extension of time is granted. Staff observed that it is difficult to obtain a building permit for a cannabis related development application within a year and the one-year timeframe for CUPs and ARs is not realistic to expect building permit issuance and diligent pursuit of construction. The City of La Quinta and City of Indio have similar two-year expiration timeframe for CUPs and Development Review Permits.
 Establish more defined CUP and AR revocation procedures in Chapter 17.74, Conditional Uses, and Chapter 17.72, Architectural Review. If a cannabis business is determined to be out 14 Item 2.
of compliance with its CUP, it is important to have clear procedures for staff and applicants regarding the revocation process.
 Establish a 12-year maximum time period for Interim Outdoor Cannabis Cultivation.

Currently, the Zoning Ordinance limits the maximum term to 4 years and it is unclear whether the CUP can be renewed. Interested outdoor cultivators have expressed that the lack of certainty for the maximum term for outdoor cannabis cultivation is a deterrent to proceeding with an outdoor cultivation operation.

The proposed amendments would update the Coachella Municipal Code based on the evaluation of cannabis businesses operations within the last 5 years. The amendments would streamline the process and reduce costs for new cannabis businesses. Staff time and resources would reduce significantly from the processing of multiple Zone Changes and variance requests for cannabis business activity proposals.

ALTERNATIVES:
1) Adopt Resolution No. PC2022-14 recommending approval of an Ordinance as presented. 2) Adopt Resolution No. PC 2021-14 recommending approval of an Ordinance with amendments.
3) Recommend denial of the ordinance.
4) Continue this item and provide staff with direction.

RECOMMENDED ALTERNATIVE(S):

Staff recommends Alternative #1.

Attachments:

1. Resolution No. PC2022-14
Exhibit A - Draft Ordinance
Exhibit B – Redlines of Code Sections

2. Coachella Business Program – Allowed Cannabis Business Areas

3. Commercial Cannabis Activity eligible areas (600 ft. residential zone buffer)

4. Commercial Zoning District Map

5. Cannabis Business Revenues (2021) and Amended Tax Structure – Slide Presentation from City Council Cannabis Study Session on January 31, 2022

6. List and Map of Cannabis Dispensaries (Planned and Existing)

7. Coachella Housing Developments Map
https://coachella.maps.arcgis.com/apps/MapTour/index.html?appid=4fec35cc88244efcab d729f22f7cc236 (click cancel when prompted to log in to ArcGIS online)

8. Cannabis Business Regulations Matrix (Existing vs. Proposed) 15 Item 2.

RESOLUTION NO. PC2022-14

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF COACHELLA, CALIFORNIA, RECOMMENDING TO

THE CITY COUNCIL AMENDMENTS TO COACHELLA
MUNICIPAL CODE CHAPTERS 5.69, 17.24, 17.26, 17.28, 17.30,

17.32, 17.34, 17.46, 17.47, 17.72, 17.74, 17.84, 17.85 REGARDING

CANNABIS BUSINESS ZONING AND OPERATION IN THE CITY
AND CONDITIONAL USE PERMIT PROCEDURE. CITYINITIATED.

WHEREAS, pursuant to the authority granted to the City of Coachella (“City”) by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and,
WHEREAS, adoption and enforcement of comprehensive zoning regulations and business license regulations lies within the City’s police power; and, WHEREAS, on November 8, 2016, California voters passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”), legalizing the use and possession of cannabis and cannabis products by adults aged 21 years and older; and, WHEREAS, on June 27, 2017, Governor Brown signed into law Senate Bill 94, which created a single regulatory scheme for both medicinal and non-medicinal cannabis known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”); and,
WHEREAS, MAUCRSA allows local jurisdictions to allow or prohibit the various commercial cannabis activities which are allowed by the State; and, WHEREAS, on January 31, 2022 the City Council held a Study Session regarding the City of Coachella Cannabis Business Program and staff identified the intent to draft Cannabis Business Streamline Code Amendments to reduce barriers for Cannabis Businesses in the City of Coachella; and,
WHEREAS, the proposed Ordinance would amend Title 5 (Business License and Regulations) and Title 17 (Zoning) to streamline the zoning and business operation for cannabis businesses; and,
WHEREAS, the subject Municipal Code Amendment is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable indirect physical change in the environment; the activity is not a project as defined in Section 15378 of the California Public Resources Code, and the activity is covered by the general rule that CEQA applies only to projects, 16 Item 2.

Resolution No. PC 2022-14

Page 2 ends

which have the potential for causing a significant impact on the environment. Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA; and, WHEREAS, the Planning Commission of the City of Coachella (“Planning Commission”) conducted a properly noticed public hearing on May 4, 2022 and June 1, 2022 at which members of the public were afforded an opportunity to comment upon this Ordinance, the recommendations of staff, and other public testimony; and, WHEREAS, after said public hearing, the Planning Commission recommended that the City Council approve this Ordinance.

NOW THEREFORE, THE PLANNING COMMISSION OF THE CITY OF
COACHELLA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The Planning Commission of the City of Coachella, California, hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution.

SECTION 2. Recommendation to City Council. Based on the entire record before the Planning Commission, all written and oral evidence presented to the Planning Commission, and the findings made in the staff report and this Resolution, the Planning Commission of the City of Coachella hereby recommends that the City Council adopt an Ordinance entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

COACHELLA, CALIFORNIA, AMENDING COACHELLA MUNICIPAL CODE CHAPTERS 5.69, 17.24, 17.26, 17.28, 17.30, 17.32, 17.34, 17.46, 17.47, 17.72, 17.74,

17.84, 17.85 REGARDING CANNABIS BUSINESS ZONING AND OPERATION IN THE CITY AND CONDITIONAL USE PERMIT PROCEDURE” which is attached hereto as Exhibit “A” and redline amendments as Exhibit “B” incorporated herein by reference.

SECTION 3. Findings. The Planning Commission finds that the amendments to the Coachella Municipal Code proposed by the above referenced ordinance are consistent with the goals and policies of all elements of the General Plan and exercise the City’s land use powers to protect the health, safety, and welfare of the public which would be put at risk if commercial cannabis activity is allowed to move forward in the City without local regulation and enforcement abilities.

The Planning Commission also finds that the proposed amendments to the Coachella Municipal Code would not be detrimental to the public interest, health, safety, convenience, or welfare of the City in that they will regulate retail and commercial cannabis businesses as a land use, by allowing the use with a conditional use permit in selected zoning districts and under certain restrictions.

The Planning Commission also finds that the proposed amendments to the Coachella Municipal Code are internally consistent with other applicable provisions of this 17 Item 2.

Resolution No. PC 2022-14

Page 3 ends

Zoning Code, in that commercial cannabis businesses would be subject to specified zoning districts and to findings necessary to grant a conditional use permit.

SECTION 4. CEQA. The Planning Commission finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the State’s CEQA Guidelines (California Code of Regulations, Title 14, Chapter 3), as the action will not result in either a direct or reasonably foreseeable indirect physical change in the environment, and Section 15060(c)(3) of the CEQA Guidelines, as the action is not a project as defined in Section 15378 of the CEQA Guidelines, because it has no potential for resulting in physical change to the environment, directly or indirectly because this Ordinance does not involve any commitment to a specific project which may result in potentially significant physical impact on the environment.

SECTION 5. Certification. The Secretary shall certify to the adoption of this Resolution.

APPROVED AND ADOPTED by the members of the City of Coachella Planning Commission on this 1st day of June, 2022.
__________________________
Stephanie Virgen,
Planning Commission Chair

ATTEST:
________________________________________
Gabriel Perez, Planning Commission Secretary
APPROVED AS TO FORM:
______________________________________
Carlos Campos, City Attorney
18 Item 2.

I, Gabriel Perez, Planning Secretary, City of Coachella, California, certify that the foregoing Resolution was adopted by the Planning Commission at a regular meeting of the Planning Commission held on the 1st day of June, 2022, and was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Gabriel Perez
Planning Commission Secretary
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ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF COACHELLA, CALIFORNIA, AMENDING
COACHELLA MUNICIPAL CODE CHAPTERS 5.69, 17.24,

17.26, 17.28, 17.30, 17.32, 17.34, 17.46, 17.47, 17.72, 17.74, 17.84,

17.85 REGARDING CANNABIS BUSINESS ZONING AND

OPERATION IN THE CITY AND CONDITIONAL USE
PERMIT PROCEDURE (First Reading)
The City Council of the City of Coachella, California, does hereby ordain as follows:

SECTION 1. Amendment to Municipal Code. Chapter 5.69 Retail Cannabis Business Regulatory Permit, Section 5.69.020 Regulatory permit required, subsection (A) is hereby amended as follows:
“5.69.020 Regulatory permit required.

A. Prior to initiating operations and as a continuing request to operating a retail cannabis business, the owner of the proposed retail cannabis business shall obtain (i) a regulatory permit from the city manager and shall pay application fees as established by resolution adopted by the city council as amended from time to time, and (ii) a conditional use permit from the city as required by this code.”
SECTION 2. Amendment to Municipal Code. Chapter 5.69 Retail Cannabis Business Regulatory Permit, Section 5.69.120 Onsite consumption permit, subsection (A) is hereby amendment as follows:
“5.69.120 Onsite consumption permit.

A. A storefront retailer or storefront retail microbusiness must obtain an onsite consumption permit (in addition to a regulatory permit under this chapter, and a conditional use permit under Chapter 17) in order for cannabis to be consumed on the premises of the storefront retailer or storefront retail microbusiness.”
SECTION 3. Amendment to Municipal Code. Chapter 17.24 C-N Neighborhood Commercial Zone, Section 17.24.010 Permitted uses is hereby amended as follows:
“17.24.020 Permitted uses.

The following uses are permitted in the C-N zone, subject to all provisions of this chapter:

A. Primary Uses.

1. Local retail businesses primarily intended to serve the immediate neighborhood, provided that no one use shall exceed five thousand (5,000) square feet of floor area, including the following:
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a. Grocery, fruit, or vegetable store; meat market;
b. Meat, fish, or dressed poultry (no live poultry) sales; c. Bakery;
d. Drugstore;
e. Reserved;
f. Hardware store; and
g. Restaurant, cafe or soda fountain, not including entertainment, dancing, sale of liquor, beer or other alcoholic beverages.

2. Local service business primarily intended to serve the immediate neighborhood, including the following:
a. Barber or beauty shop;
b. Child care centers;
c. Clothes cleaning and laundry pickup stations, laundromat, coin-operated dry cleaning establishment;
d. Offices of physicians, dentists, optometrists, chiropractors, accountants and realtors; and
e. Tailor, dressmaker.

B. Accessory Uses. The following buildings, structures, and uses are permitted when clearly incidental and accessory to the primary permitted use:

1. Signs as follows, subject to all provisions of Section 17.56.010 of this title. a. One unlighted sign pertaining to the rental, sale or lease of the premises, not to exceed twenty (20) square feet in area.
b. Advertising signs pertaining only to the goods and services sold on the premises, or to the name of the establishment. The total aggregate area of all signs pertaining to any one establishment shall be eighty (80) square feet.

2. Canopies, arcades, carports or similar shading devices.

3. Other accessory buildings, structures and uses customarily appurtenant to a primary permitted use.

C. Conditional Uses. The following uses may be permitted in the C-N zone, subject to obtaining a conditional use permit as specified in Section 17.74.010 of this title. 21 Item 2.
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1. Those uses allowed as conditional uses by Section 17.16.020(C) of the R-S zone;

2. Lodges, fraternal organizations, and clubs;

3. Automobile service stations;

4. Dwelling units, multiple-family, limited to second story;

5. Liquor sales, subject to Section 17.74.015; and

6. Automotive repair garage as an accessory to automobile service station.

7. Retail cannabis businesses, including storefront retailers, storefront retail microbusinesses, non-storefront retailers and non-storefront retail microbusinesses, pursuant to Chapter 17.84. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.24.020(A).”
SECTION 4. Amendment to Municipal Code. Chapter 17.26 C-G General Commercial Use Zone, Section 17.26.020 Permitted uses, Subsection (C) is hereby amended as follows:
“17.26.020 Permitted uses.

The following uses are permitted in the C-G zone, subject to all provisions of this chapter:
…
C. Conditional Uses. The following uses may be permitted in all sectors of the CG zone subject to obtaining a conditional use permit pursuant to Chapter 17.74.

1. Drive-in, walk-up or other fast-food establishments;

2. Bus terminals, depots, and similar transit facilities;

3. Reconditioned or used merchandise sales;

4. Ambulance services;

5. Car washes;

6. Pawn shops;

7. Bowling, pool or billiard centers;

8. Commercial parking lots;

9. Tourist camps;

10. Automotive repair garage as an accessory to automobile service station; 22 Item 2.
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11. Commercial psychic activities;

12. Liquor sales, subject to Section 17.74.015;

13. Automobile accessories and parts;

14. New and used automobile sales and mobilehome sales;

15. Multi-bay auto repair;

16. Engineering research and testing firms and laboratories;

17. Truck, farm implement and machinery sales and rental, sale of parts;

18. Laundromat/coin operated laundry so long as a full time attendant is provided;

19. Plumbing shop, provided all outside storage is completely screened;

20. Sign manufacture;

21. Parcel or overnight delivery services;

22. Photocopying, photo processing and blueprinting;

23. Ceramic products manufacture;

24. Printing establishments;

25. Drycleaners;

26. Mattress manufacture;

27. Bookstore;

28. Mortuaries;

29. Swap meet, indoor;

30. Swap meet, outdoor;

31. Multi-tenant retail;

32. Tattoo and body piercing parlors;

33. Neighborhood recycling centers, pursuant to Chapter 17.90;

34. Commercial cannabis testing laboratories, pursuant to Chapter 17.85;

35. Retail cannabis businesses, including storefront retailers, storefront retail microbusinesses, non-storefront retailers and non-storefront retail microbusinesses, pursuant to 23 Item 2.
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Chapter 17.84. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.26.020(A).”
SECTION 5. Amendment to Municipal Code. Chapter 17.26 C-G General Commercial Use Zone, Section 17.26.030 Property development standards, Subsection (I) is hereby removed in its entirety.

SECTION 6. Amendment to Municipal Code. Chapter 17.28 C-T Tourist Commercial Zone, Section 17.28.020 Permitted uses, subsection (D) is hereby amended as follows:
“17.28.020 Permitted uses.

The following uses are permitted in the C-T zone, subject to all provisions of this chapter:
…
D. Conditional Uses. The following uses may be permitted the C-T zone subject to obtaining a conditional use permit as specified in Section 17.74.010.

1. Theater, including drive-in;

2. Drive-in or walk-up or other fast-food service establishments;

3. Bowling alley;

4. Billiard parlor;

5. Skating rinks;

6. Liquor sales, subject to Section 17.74.015;

7. Bus terminals, depots, and similar transit facilities;

8. Car washes;

9. Tourist camps;

10. Automotive repair garage as an accessory to automobile service station.

11. Retail cannabis businesses, including storefront retailers, storefront retail microbusinesses, non-storefront retailers and non-storefront retail microbusinesses, pursuant to Chapter 17.84. The conditional uses allowed in this subsection shall not be interpreted to include any primary or tourist-related uses listed in Section 17.28.020(A) and (B).” SECTION 7. Amendment to Municipal Code. Chapter 17.30 M-S Manufacturing Service Zone, Sections 17.30.020 Permitted uses, subsection (C) are hereby amended as follows:
“17.30.020 Permitted uses.
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The following uses are permitted in the M-S zone subject to all provisions of this chapter. …
C. Conditional Uses. The following uses may be permitted in the M-S zone subject to obtaining a conditional use permit as specified in Section 17.74.010.

1. Restaurant with cocktail lounge;

2. Stone monument works;

3. Exterminating or disinfecting service firm;

4. Cotton gins, oil mills, vegetable oil plants;

5. Oil cloth or linoleum manufacture;

6. Paint, oil, shellac, turpentine, or varnish manufacture;

7. Plastic manufacture;

8. Planing mills;

9. Poultry dressing and packaging;

10. Wire and wire products manufacture;

11. Service stations;

12. Metal plating;

13. Automotive repair garage as an accessory to automobile service station;

14. Mini storage warehouse;

15. Tattoo and body piercing parlors; and

16. Indoor commercial cannabis cultivation, manufacturing, testing, distribution, retail cannabis businesses (storefront and non-storefront, including microbusinesses) and non-retail microbusinesses pursuant to Chapters 17.84 and 17.85. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.30.020(A).” SECTION 8. Amendment to Municipal Code. Chapter 17.30 M-S Manufacturing Service Zone, Section 17.30.030 Property development standards, subsection (I) is hereby removed in its entirety.

SECTION 9. Amendment to Municipal Code. Chapter 17.32 M-H Heavy Industrial Zone, Section 17.32.020 Permitted uses, Subsection (C) is hereby amended as follows:
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“17.32.020 Permitted uses.

The following uses are permitted in the M-H zone subject to all provisions of this chapter. …
C. Conditional Uses. The following uses may be permitted in the M-H zone subject to obtaining a conditional use permit pursuant to Chapter 17.74.

1. Acid manufacture;

2. Animal (including fish) products manufacture or processing;

3. Asphalt or asphaltic concrete manufacturing plants;

4. Borrow pits;

5. Brick yards;

6. Breweries and alcoholic beverage manufacture;

7. Bulk distributing stations—Hazardous materials;

8. Cement block, concrete block manufacture, storage yards;

9. Concrete ready-mix plants;

10. Community recycling collection facilities, pursuant to Chapter 17.90;

11. Creosote manufacture;

12. Distillation of alcohol, bones, coal, coal tar, coke, wood;

13. Drop forge industries;

14. Explosives or fireworks manufacture;

15. Feed yards, feed mills;

16. Foundry;

17. Gas manufacture, including but not limited to chlorine and other noxious gases;

18. Glue manufacture;

19. Livestock sales and feed yards;

20. Lamp black manufacture;

21. Prison, jail, correctional facility or detention facility; 26 Item 2.
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22. Quarries;

23. Rock crushing operations;

24. Smelting operations;

25. Tannery;

26. Tar distillation or tar products manufacture;

27. Transfer station, small scale, pursuant to Chapter 17.90;

28. Winery;

29. Indoor commercial cultivation, manufacturing, testing laboratory, distribution, retail cannabis businesses (storefront and non-storefront, including microbusinesses) and nonretail microbusiness, to Chapters 17.84 and 17.85. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.32.020(A).” SECTION 10. Amendment to Municipal Code. Chapter 17.34 M-W Wrecking Yard Zone, Section 17.34.020 Permitted Uses, Subsection (C) is hereby removed as follows:
“17.34.020 - Permitted uses.
…
C. Conditional Uses. The following uses may be permitted in the M-W zone subject to obtaining a conditional use permit pursuant to Chapter 17.74 of this code.

1. Those conditional uses allowed by Section 17.32.020(C) in the M-H zone;

2. Automobile dismantling or wrecking yard;

3. Automobile impounding yard;

4. Community recycling collection facilities, pursuant to Chapter 17.90;

5. Construction and demo material recycling facilities pursuant to Chapter 17.90;

6. Wood and green waste recycling facilities, pursuant to Chapter 17.90.

7. Indoor commercial cannabis cultivation, manufacturing, distribution, testing, nonretail microbusiness, non-storefront retail, non-storefront retail microbusiness, storefront retail, and storefront retail microbusiness, facilities, pursuant to Chapters 17.84 and 17.85.” SECTION 11. Amendment to Municipal Code. Chapter 17.34 M-W Wrecking Yard Zone, Section 17.34.030 Property development standards, Subsection (K) is hereby removed in its entirety.
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SECTION 12. Amendment to Municipal Code. Chapter 17.46 IP Industrial Park Overlay Zone, Section 17.46.023 Conditional uses is hereby removed in its entirety.

SECTION 13. Amendment to Municipal Code. Chapter 17.46 IP Industrial Park Overlay Zone, Section 17.46.030 Property development standards is hereby amended as follows:
“17.46.030 Property development standards.

A. Project Area/Lot Requirements

1. Minimum Project Area: Ten (10) acres. For purposes of this paragraph, “project area” shall mean the combined area of all legally subdivided lots developed as a common plan or scheme by the same or affiliated developer(s).

2. Minimum individual Lot Size: One acre.

3. Minimum Lot Width. One hundred eighty (180) feet.

4. Minimum Lot Depth. Two hundred twenty (220) feet.

5. Maximum Lot Coverage. Fifty (50) percent. The development services director may allow individual lots within a project area to exceed this standard if he or she finds that: (i) it will result in more orderly development of the project area and (ii) the average lot coverage of all lots within the project area does not exceed fifty (50) percent.

B. Front Yard Requirements.

1. Twenty-five (25) feet from the curb on all property fronting on Avenue 54 and Avenue 52.

2. Twenty (20) feet from the curb on all property fronting Industrial Way, Enterprise Way or Polk Street.

3. Ten (10) feet from the curb on all property fronting any local street.

4. All front setbacks shall be landscaped in a manner approved by the planning commission.

5. No buildings, facilities or other improvements shall be allowed in a required front yard except for landscaping or block entryways approved by the planning commission.

Notwithstanding the foregoing, required yards may be used for automobile parking; provided, that landscaping approved by the planning commission is provided along the frontage of the property.

C. Height Limits. The maximum height of any building or structure shall be fifty (50) feet.

D. Distance Between Buildings. Buildings not actually adjoining shall be provided with a minimum eight-foot separation.
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E. On-Street/Off-Street Parking and Loading.

1. Off-Street Parking and Loading. Off-street parking and loading facilities shall be provided in accordance with the provisions of Section 17.54.010 of this title.

2. On-Street Parking and Loading. On-street parking or loading shall be prohibited.

F. Walls and Screening.

1. Each development on a lot or parcel of property shall be enclosed with decorative masonry walls and/or wrought iron fencing, subject to review by the planning commission.

2. All parking lots and loading areas shall be screened from view to the street with low decorative masonry walls and landscaping, subject to review by the planning commission.

G. Other Property Development Standards.

1. All utilities shall be underground, until such time as the power transmitted is greater than thirty-four (34) KV and then it shall be brought to the attention of the planning commission prior to any construction.

2. All developments shall include an exterior lighting system to provide adequate are security. Such lighting system shall use high-pressure sodium lights or an equivalent type of light approved by the planning commission.

3. All developments shall be landscaped in a manner approved by the planning commission.”
SECTION 14. Amendment to Municipal Code. Chapter 17.47 RC Retail Cannabis Overlay Zone is hereby repealed in its entirety.

SECTION 15. Amendment to Municipal Code. Chapter 17.72 Architectural Review, Section 17.72.010 Architectural Review, subsection (G) is hereby amended as follows:
“J. Expiration of Architectural Approval.

1. Architectural approval shall expire two (2) years from approval unless the applicant has: obtained a building permit; paid all applicable fees; commenced construction; and is diligently pursuing completion. A cessation of construction for a period of more than thirty (30) consecutive days shall be presumed to be nondiligent.

2. The architectural review approval that has been granted, but not been exercised within two years, may be renewed for three one year time extensions only if an application stating reasons for renewal is filed with the planning director at least ten (10) days prior to one two years after the effective date of the architectural review approval. The original approving authority for the architectural review (planning director or planning commission) shall render a decision regarding an extension. In the event that the planning director or planning commission acts to grant a time extension for the architectural approval, the planning director or planning commission may 29 Item 2.
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impose any reasonable conditions on the architectural approval as a condition of its renewal. In the event that such additional conditions are not acceptable to the applicant and/or owner, the planning director or planning commission shall deny the time extension request.

3. The criteria for granting a two (2) year extension are:
a. No significant change has occurred in the surrounding neighborhood; b. The project conforms to existing and any new building and zone requirements; c. A request for the extension is properly filed with the planning director ten (10) days or more prior to expiration; and
d. The applicant states upon affidavit the reasons requiring an extension and such other criteria as the planning department shall set forth in the application.

4. The planning director or planning commission shall grant the extension if good cause is set forth in the application.”
SECTION 16. Amendment to Municipal Code. Chapter 17.74 Conditional Uses, Section

17.74.050 Post-determination procedures, subsections (A) and (B) is hereby amended as follows:
“A. Expiration of Conditional Use.

1. A conditional use shall expire and shall become void two years following the date on which the conditional use became effective, unless prior to the expiration of two years a building permit is issued and construction is commenced and diligently pursued toward completion , or a certificate of occupancy is issued.

2. A conditional use that has been granted, but not been exercised within two years may be renewed for three one-year time extensions only if an application stating reasons for renewal is filed prior to one year after the effective date of the conditional use approval by the planning commission. In the event that the planning commission acts to approve a time extension for the conditional use permit, the planning commission may impose any reasonable conditions on the conditional use permit as a condition of the time extension, provided a modification to the conditional use permit is processed. In the event that such additional conditions are not acceptable to the applicant and/or owner, the planning commission shall deny the time extension request.

3. Conditional uses for public utilities, public health facilities, or governmental enterprises, including but not united to elementary or high schools, libraries, museums, fire or police stations are exempt from the expiration provision provided acquisition or legal proceeding for acquisition of the site is commenced within two years.

B. Revocation of Conditional Use.

1. Review authority. The planning commission may recommend revocation or modification and the city council may revoke or modify the conditional use permit. 30 Item 2.
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2. Planning commission review. The planning commission shall hold a public hearing on the proposed modification or revocation of the conditional use permit at which the then current holder of the conditional use permit (the applicant for the conditional use permit or the applicant’s successor in interest) shall be given opportunity to present evidence as to why the conditional use permit should not be modified or revoked. Notice of the hearing shall be given to the holder either by personal service or by registered mail, postage prepaid, return receipt requested; provided, however, that should such notice not be able to be given in such means after three attempts, such notice may be given by posting on the property for which the conditional use permit was issued.

The commission may for any reason, when it deems such action necessary or desirable, continue such hearing to a time and place certain. After the hearing, the commission shall recommend that the conditional use permit be revoked, modified or allowed to remain unchanged and shall cause a written report of its recommendation to be transmitted to the city council; provided, however, if the commission has held such hearing on its own motion and is of the opinion that the use permit should neither be revoked or modified, the commission need not report its recommendation.

3. City council review. At the next regular meeting of the city council after the planning commission has acted, any reported recommendation of the planning commission shall be deemed filed with the city council. Within thirty days thereafter, the city council shall hold a public hearing upon the question of the revocation or modification of the conditional use permit.

The city council may for any reason, when it deems such action necessary or desirable, continue such hearing to a time and place certain. After the hearing, the city council may revoke or modify the conditional use permit or allow the permit to remain unchanged. The action of the city council shall be final.

4. Required findings. The review authority shall meet one or more of the following findings to modify or revoke a conditional use permit:
a. One or more conditions of approval of the conditional use permit are being violated or are not being satisfied.
b. The conditional use is being operated or maintained in a manner that constitutes a public nuisance.
c. The conditional use is being operated or maintained in a manner that is inconsistent with the use for which the permit was approved. d. The use has ceased or been suspended for a year or more. e. The use has not been exercised within the validation time period. f. The conditional use permit was obtained by fraud in that the original application contained incorrect, false, or misleading information.” SECTION 17. Amendment to Municipal Code. Chapter 17.84 Retail Cannabis Businesses, Section 17.84.020 Definitions is hereby amended as follows:
“17.84.020 Definitions.
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For the purposes of this chapter, the following definitions shall apply. “Applicant” means an owner that applies for a conditional use permit under this chapter. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indicia, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the California Health and Safety Code. “Cannabis products” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
“City manager” means the city manager of the city of Coachella or designee. “Conditional use permit” or “CUP” means a conditional use permit issued under this chapter.
“Customer” means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician’s recommendation, or a primary caregiver.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Edible cannabis product” means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code.

When the term “cannabis” is used in this chapter, it shall include “edible cannabis products.” “Non-retail microbusiness” means a commercial business that engages in indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all 32 Item 2.
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requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Non-storefront retail microbusiness” means a commercial business that engages in nonstorefront retail cannabis sales and at least two of the following commercial cannabis activities:
indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Non-storefront retailer” means a cannabis retailer that provides cannabis exclusively through delivery.
“Owner” means any of the following:
(1) A person with an aggregate ownership interest of twenty percent (20%) or more in the applicant, unless the interest is solely a security, lien, or encumbrance; (2) The chief executive officer of a nonprofit or other entity; (3) A member of the board of directors of a nonprofit;
(4) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
(5) An individual entitled to a share of at least twenty percent (20%) of the profits of the commercial cannabis business;
(6) An individual that will be participating in the direction, control, or management of the person applying for a permit. Such an individual includes any of the following: a general partner of a commercial cannabis business that is organized as a partnership; a non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company; an officer or director of a commercial cannabis business that is organized as a corporation.
“Permittee” means any person holding a valid permit under this chapter. A permittee includes all representatives, agents, parent entities, or subsidiary entities of the permittee. “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Premises” means the designated structures and land specified in the conditional use permit application or development agreement that are in the possession of an used by the applicant or permittee to conduct the retail cannabis business. The premises must be a contiguous area and may only be occupied by one permittee.
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“Retail cannabis business” means a business that sells and/or delivers cannabis or cannabis products to customers, and includes the following business types: non-storefront retail microbusiness, non-storefront retailer, storefront retailer, and storefront retail microbusiness. “Sell,” “sale,” and “to sell” include any transaction, whereby, for any consideration title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee to the permittee from who the cannabis or cannabis product was purchased. “State license” means a license issued by the state of California, as listed in California Business and Professions Code Section 26050.
“Storefront retailer” means a business that has a storefront open to the public where cannabis or cannabis products are offered for retail sale to consumers, where delivery may or may not be included as part of the business’s operation.
“Storefront retail microbusiness” means a commercial business that engages in retail cannabis sales and at least two of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

A. The Compassionate Use Act of 1996 (“CUA”);
B. The Medical Marijuana Program (“MMP”); and
C. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”).”
SECTION 18. Amendment to Municipal Code. Chapter 17.84 Retail Cannabis Businesses, Section 17.84.030 Conditional use permit required is hereby amended as follows:
“17.84.030 Conditional use permit required.

A. The city may authorize a total of ten (10) storefront retailers and/or storefront retail microbusinesses and an unlimited number of non-storefront retailers and non-storefront retail microbusinesses to operate in the city of Coachella pursuant to section 17.84.040. If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants may be made by a process, and subject to criteria, established by city council resolution.

B. Prior to initiating operations and as a continuing requisite to operating a retail cannabis business, the owner shall obtain (i) conditional use permit from the city, (ii) a regulatory 34 Item 2.
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permit from the city manager and shall pay application fees as established by resolution adopted by the city council as amended, and (iii) a state license for each cannabis use authorized in the conditional use permit. Unless otherwise stated herein in this section, the provisions found in Chapter 17.74 entitled “Conditional Uses” shall apply.

C. Changes in state license type, business owner, or operation will require an amendment to the approved conditional use permit.

D. A retail cannabis business with a physical address outside of the city that wishes to deliver cannabis or cannabis products to a customer in the city is not required to obtain a conditional use permit under this chapter, but is required to obtain a city business license.

E. This chapter does not apply to the individual possession of cannabis for personal adult use, as allowed by state law. Personal possession and use of cannabis in compliance with state law are permitted in the city of Coachella.”
SECTION 19. Amendment to Municipal Code. Chapter 17.84 Retail Cannabis Businesses, Section 17.84.040 Permitted locations and standards is hereby amended as follows:
“17.84.040 Permitted locations and standards.

A. Location Restrictions. Retail cannabis businesses may be located in the following zones: C-N Neighborhood Commercial (Chapter 17.24), C-G General Commercial Use (Chapter

17.26), C-T Tourist Commercial (Chapter 17.28), M-S Manufacturing Service (Chapter 17.30), M-H Heavy Industrial (Chapter 17.32) and M-W Wrecking Yard (Chapter 17.34).

B. Distance Restrictions.

1. Non-storefront businesses. A non-storefront retailer or non-storefront retail microbusiness shall have a minimum of one hundred (100) feet separation from any residential structure and be at least five hundred (500) feet from any other storefront retail or non-storefront retail cannabis business; and may not be located in the City’s Pueblo Viejo District. For purposes of this chapter, “Pueblo Viejo District” shall be that area in the city bounded by Cesar Chavez Street to the south, 1st Street to the west, Grapefruit Boulevard to the north, and 9th Street to the east.

2. Storefront businesses. A storefront retailer or storefront retail microbusiness shall be located a minimum distance of eight hundred (800) feet away from Avenue 52. The distance shall be measured at the nearest point between any part of the building containing retail cannabis business and the Avenue 52 street right-of-way.

3. Separation from schools. No retail cannabis business shall be located within two hundred fifty (250) feet of any public or private school (K-12), day care center, or youth center.

The distance shall be measured from the nearest point between any part of the building containing the retail cannabis business to any lot line of the other use. For purposes of this paragraph, the following definitions shall apply:
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a. “Day care center” means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities and school age child care centers.
b. “Youth center” means any public or private facility that is primarily used to house recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

C. No Drive-Thru Retail Cannabis Facilities. No retail cannabis business shall operate “drive-thru”, “drive up”, “window service” or similar facilities whereby a customer can order, purchase and receive retail cannabis without leaving his or her vehicle.

D. Location of Customer Entrance. No retail cannabis business shall have a customer entrance that is adjacent to or directly across the street from a residentially zoned lot.

E. State license(s). Every retail cannabis business shall submit to the city manager a copy of any and all of its state license(s). If any state license is suspended, modified, revoked, or expired, the permittee shall notify the city manager in writing within ten (10) calendar days.

F. Building façade plan. Each CUP applicant must submit a building façade plan.

Building façade plans shall include renderings of the exterior building elevations for all sides of the building. All building façades shall be tastefully done and in keeping with the high architectural quality and standards of the city of Coachella. The retail cannabis business facade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area.

G. Compliance with Chapter 17.74. Except as required in this chapter, CUPs shall be reviewed, issued, denied, suspended, revoked, and/or renewed in accordance with Chapter 17.74 entitled “Conditional Uses”. If any provision of this chapter conflicts with any provision of Chapters 17.74 of this code, the provision in this chapter shall control.” SECTION 20. Amendment to Municipal Code. Chapter 17.84 Retail Cannabis Businesses, Section 17.84.060 Prohibited operations is hereby amended as follows:
“17.84.060 Prohibited operations.

Any retail cannabis business that does not have a CUP, regulatory permit required under this code, and a state license(s) is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions.”
SECTION 21. Amendment to Municipal Code. Chapter 17.84 Retail Cannabis Businesses, Section 17.84.070 Grounds for permit denial, suspension, and revocation is hereby amended as follows:
“17.84.070 Grounds for permit denial, suspension, and revocation. 36 Item 2.
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Any conditional use permit considered or issued pursuant to the provisions of this chapter may be denied, suspended, or revoked by the planning commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee:

A. Has knowingly made false statements in the applicant’s application or in any reports or other supporting documents furnished by the applicant or permittee; B. Has failed to maintain a valid state license;
C. Has failed to comply with any applicable provision of the Coachella Municipal Code, including, but not limited to this chapter, the city’s building, zoning, health, and public safety regulations;
D. Has failed to comply with any condition imposed on the conditional use permit; or E. Has allowed the existence of or created a public nuisance in violation of the Coachella Municipal Code.”
SECTION 22. Amendment to Municipal Code. Chapter 17.85 Commercial Cannabis Activity, Section 17.85.020 Definitions is hereby amended as follows:
“17.85.020 Definitions.

Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter:
“Applicant” means an owner applying for a conditional use permit under this chapter. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” also means marijuana as defined by Section 11018 of the California Health and Safety Code. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, “cannabis” does not mean “industrial hemp” as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.
“Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the California Health and Safety Code. 37 Item 2.
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“Cannabis products” has the same meaning as marijuana products in Section 11018.1 of the California Health and Safety Code. When the term “cannabis” is used in this chapter, it shall include “cannabis products.”
“City manager” means the city manager of the city of Coachella or designee. “Commercial cannabis activity” includes the cultivation, manufacture, laboratory testing, and distribution, including non-retail microbusinesses, (including possession, processing, storing, and labeling incidental to each activity, as applicable) of cannabis and cannabis products. For purposes of this chapter, “commercial cannabis activity” does not include delivery or retail sale of cannabis or cannabis products.
“Conditional use permit” or “CUP” means a conditional use permit issued under this chapter.
“Cultivate” or “cultivation” means any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. A cannabis nursery is considered a “cultivation” use.
“Customer” means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician’s recommendation, or a primary caregiver.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Distribution” means the procurement, wholesale sale, and transport of cannabis and cannabis products between entities permitted or licensed under this chapter, another local California jurisdiction, or state law.
“Edible cannabis product” means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

A. CUA (California Health and Safety Code Section 11362.5); B. MMP (California Health and Safety Code Sections 11362.7 through 11362.83); and C. MAUCRSA (California Business and Professions Code Sections 26000 et seq.).” SECTION 23. Amendment to Municipal Code. Chapter 17.85 Commercial Cannabis Activity, Section 17.85.030 Commercial cannabis activity permitted is hereby amended as follows:
“17.85.030 - Commercial cannabis activity permitted.

Commercial cannabis activity permitted under this chapter includes indoor cultivation, interim outdoor cultivation, manufacture (including shared-use facilities), distribution, testing, and non-retail microbusinesses (including possession, processing, storing, and labeling incidental to such activity).”
SECTION 24. Amendment to Municipal Code. Chapter 17.85 Commercial Cannabis Activity, Section 17.85.040 Conditional use permit required is hereby amended as follows:
“17.85.040 - Conditional use permit required.

Prior to initiating operations and as a continuing requisite to operating a commercial cannabis activity, the applicant shall obtain a CUP as provided in Chapter 17.74 entitled “Conditional Uses” and a regulatory permit and a state license for each use authorized in the CUP.

If any provision of this chapter conflicts with any provision of Chapter 17.74 of this code, the provision in this chapter shall control. An applicant must obtain a separate CUP for each commercial cannabis activity the applicant wishes to operate. Separate CUPs may be issued for indoor cannabis cultivation versus interim outdoor cannabis cultivation. Each CUP will include a condition of approval requiring that the permittee also obtain and maintain an indoor cultivation, interim outdoor cultivation, manufacture, distribution, non-retail microbusiness, or testing laboratory regulatory permit required by this code. Each CUP for interim outdoor cultivation may include a condition of approval that limits outdoor cultivation activities to a specified duration not to exceed the sooner of forty eight (48) months, or the first phase of construction establishing a new residential or commercial use. If the condition is accepted by the applicant, the City may thereafter record a covenant memorializing this restriction against the property, which shall include a reference to the approved CUP. The City Manager or his/her designee shall make efforts to notify the permittee a year prior to CUP expiration of the need to renew the CUP.” 40 Item 2.
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SECTION 25. Amendment to Municipal Code. Chapter 17.85 Commercial Cannabis Activity, Section 17.85.050 Permitted locations and standards is hereby amended as follows:
“17.85.050 - Permitted locations and standards.

A. Indoor commercial cultivation, manufacturing, testing laboratory, and distribution activities.

1. Location. Indoor commercial cultivation, manufacturing, testing laboratory, distribution, and non-retail microbusiness uses may be located in any manufacturing service (MS) zone, heavy industrial (M-H) zone, and wrecking yard (M-W) zone upon issuance of a conditional use permit and regulatory permit.

2. Indoor only. All uses shall be conducted only in the interior of enclosed structures, facilities, and buildings. All indoor cultivation operations, including all cannabis plants, at any stage of growth, shall not be visible from the exterior of any structure, facility or building containing cultivation. All indoor cultivation, manufacturing, testing and processing must take place indoors, within a permanent structure that is enclosed on all sides. Outdoor manufacturing, testing, and processing are prohibited. Portable greenhouses and/or non-permanent enclosures shall not be used for cultivation unless they are placed inside of a permanent structure that is enclosed on all sides.

3. Odor control. Uses shall not result in the creation of any odors detectable from anywhere off the property boundaries. The use of carbon filtration systems and other mitigation measures shall be used on all commercial cannabis activities that cause such odors.

4. Water and sewer. Indoor commercial cannabis activity must be served by municipal water and sewer services. Interim outdoor cannabis cultivation uses need only be served by a private water well or municipal water.

5. Distance restriction. Indoor commercial cannabis activity shall be located a minimum distance of six hundred (600) feet away from any residentially-zoned lot. The distance shall be measured at the nearest point between property lines containing the commercial cannabis use and any lot line of the residential use.

6. Testing laboratories. Testing laboratories may be located in the general commercial (C-G) zone in addition to the M-W zone and IP overlay zone with a CUP, but are not required to meet the requirement in subsection (A)(5) of this section.

B. Interim outdoor commercial cannabis cultivation.

1. Location. Interim outdoor commercial cannabis cultivation be located in any agricultural reserve (A-R) zone, agricultural transition (A-T) zone, residential single-family (R-S) zone, multiple-family residential (R-M) zone, and general commercial (C-G) zone that is located within the geographic area bounded by Vista Del Sur on the north, the All-American Canal on the east, Avenue 52 on the south, and the 86 Expressway on the west, upon issuance of a conditional use permit CUP and a regulatory permit.
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2. Property development standards. All interim outdoor commercial cannabis cultivation sites:
(a) shall be located on a site having a minimum of one (1) acre in size. (b) shall have a maximum canopy size that is no larger than the maximum size authorized by the State license for that business.
(c) shall provide a minimum twenty-foot (20 ft.) setback on all sides with an opaque fencing material, subject to review and approval by the Planning Director, to screen the outdoor grow areas from view to public streets.

3. Distance Restrictions. No interim outdoor commercial cannabis cultivation shall be located within one thousand (1,000) feet of any public or private school (K-12), day care center or youth center. The distance shall be measured from the nearest point between the property line containing the interim outdoor commercial cannabis cultivation use to any lot line of the other use. “Day care center” means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities and school age child care centers. “Youth center” means any public or private facility that is primarily used to house recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.” SECTION 26. Amendment to Municipal Code. Chapter 17.85 Commercial Cannabis Activity, Section 17.85.080 Prohibited operations is hereby amended as follows:
“17.85.080 Prohibited operations.

Any commercial cannabis activity that does not have both a CUP and a regulatory permit required under this code is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including but not limited to civil injunctions.”
SECTION 27. CEQA Analysis. This Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the State’s CEQA Guidelines (California Code of Regulations, Title 14, Chapter 3), as the action will not result in either a direct or reasonably foreseeable indirect physical change in the environment, and Section 15060(c)(3) of the CEQA Guidelines, as the action is not a project as defined in Section 15378 of the CEQA Guidelines, because it has no potential for resulting in physical change to the environment, directly or indirectly because this Ordinance does not involve any commitment to a specific project which may result in potentially significant physical impact on the environment.

SECTION 28. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, 42 Item 2.
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subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional.

SECTION 29. Publication and Effective Date. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to published or posted as required by law, which shall take full force and effect thirty (30) days from its adoption.

PASSED, APPROVED, AND ADOPTED this ______ of _____________, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Steven Hernandez, Mayor
City of Coachella
ATTEST:
___________________________________
Angela M. Zepeda, City Clerk
City of Coachella
APPROVED AS TO FORM:
___________________________________
Carlos Campos, Best Best & Krieger LLP
City Attorney
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Exhibit B
This attachment shows the updates to the Coachella Municipal Code in redline. Additions to the Municipal Code are shown in underlined text. Deletions are shown in strikethrough.

I. 5.69 RETAIL CANNABIS BUSINESS REGULATORY PERMIT, SECTION 5.69.020

REGULATORY PERMIT REQUIRED, SUBSECTION (A)
“5.69.020 Regulatory permit required.

A. Prior to initiating operations and as a continuing request to operating a retail cannabis business, the owner of the proposed retail cannabis business shall obtain (i) a regulatory permit from the city manager and shall pay application fees as established by resolution adopted by the city council as amended from time to time, and (ii) either a development agreement or a conditional use permit from the city as required by this code.” II. CHAPTER 5.69 RETAIL CANNABIS BUSINESS REGULATORY PERMIT, SECTION 5.69.120 ONSITE CONSUMPTION PERMIT, SUBSECTION (A) “5.69.120 Onsite consumption permit.

A. A storefront retailer or storefront retail microbusiness must obtain an onsite consumption permit (in addition to a regulatory permit under this chapter, and a conditional use permit or development agreement under Coachella Municipal Code Chapter 17) in order for cannabis to be consumed on the premises of the storefront retailer or storefront retail microbusiness.”
III. CHAPTER 17.24 C-N NEIGHBORHOOD COMMERCIAL ZONE, SECTION

17.24.010 PERMITTED USES
“17.24.020 Permitted uses.

The following uses are permitted in the C-N zone, subject to all provisions of this chapter:

A. Primary Uses.

1. Local retail businesses primarily intended to serve the immediate neighborhood, provided that no one use shall exceed five thousand (5,000) square feet of floor area, including the following:
a. Grocery, fruit, or vegetable store; meat market;
b. Meat, fish, or dressed poultry (no live poultry) sales; c. Bakery;
d. Drugstore;
e. Reserved;
f. Hardware store; and
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Exhibit B
g. Restaurant, cafe or soda fountain, not including entertainment, dancing, sale of liquor, beer or other alcoholic beverages.

B. Accessory Uses. The following buildings, structures, and uses are permitted when clearly incidental and accessory to the primary permitted use:

2. Canopies, arcades, carports or similar shading devices.

3. Other accessory buildings, structures and uses customarily appurtenant to a primary permitted use.

C. Conditional Uses. The following uses may be permitted in the C-N zone, subject to obtaining a conditional use permit as specified in Section 17.74.010 of this title.

1. Those uses allowed as conditional uses by Section 17.16.020(C) of the R-S zone;

2. Lodges, fraternal organizations, and clubs;

3. Automobile service stations;

4. Dwelling units, multiple-family, limited to second story;

5. Liquor sales, subject to Section 17.74.015; and

6. Automotive repair garage as an accessory to automobile service station.

7. Retail cannabis businesses, including storefront retailers, storefront retail 45 Item 2.
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Exhibit B
microbusinesses, non-storefront retailers and non-storefront retail microbusinesses, pursuant to Chapter 17.84. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.24.020(A).”
IV. CHAPTER 17.26 C-G GENERAL COMMERCIAL USE ZONE, SECTION 17.26.020

PERMITTED USES, SUBSECTION (C)
“17.26.020 Permitted uses.

1. Drive-in, walk-up or other fast-food establishments;

2. Bus terminals, depots, and similar transit facilities;

3. Reconditioned or used merchandise sales;

4. Ambulance services;

5. Car washes;

6. Pawn shops;

7. Bowling, pool or billiard centers;

8. Commercial parking lots;

9. Tourist camps;

10. Automotive repair garage as an accessory to automobile service station;

11. Commercial psychic activities;

12. Liquor sales, subject to Section 17.74.015;

13. Automobile accessories and parts;

14. New and used automobile sales and mobilehome sales;

15. Multi-bay auto repair;

16. Engineering research and testing firms and laboratories;

17. Truck, farm implement and machinery sales and rental, sale of parts;

18. Laundromat/coin operated laundry so long as a full time attendant is provided; 46 Item 2.
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Exhibit B

19. Plumbing shop, provided all outside storage is completely screened;

20. Sign manufacture;

21. Parcel or overnight delivery services;

22. Photocopying, photo processing and blueprinting;

23. Ceramic products manufacture;

24. Printing establishments;

25. Drycleaners;

26. Mattress manufacture;

27. Bookstore;

28. Mortuaries;

29. Swap meet, indoor;

30. Swap meet, outdoor;

31. Multi-tenant retail;

32. Tattoo and body piercing parlors;

33. Neighborhood recycling centers, pursuant to Chapter 17.90;

34. Commercial cannabis testing laboratories, pursuant to Chapter 17.85;

35. Retail cannabis businesses, including storefront retailers, storefront retail microbusinesses, non-storefront cannabis retailers and non-storefront retail microbusinesses, pursuant to Chapter 17.84. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.26.020(A).” V. CHAPTER 17.26 C-G GENERAL COMMERCIAL USE ZONE, SECTION 17.26.030

PROPERTY DEVELOPMENT STANDARDS, SUBSECTION (I)
“17.26.030 Property development standards.
…
I. Non-storefront retailer and non-storefront retail microbusiness. A non-storefront retailer or non-storefront retail microbusiness shall have a minimum of one hundred (100) feet separation from any residential structure; be at least five hundred (500) feet from any other storefront retail or non-storefront retail cannabis business; and may not be located in the City’s Pueblo Viejo District. For purposes of this chapter, “Pueblo Viejo District” shall be that area in the city bounded by Cesar Chavez Street to the south, 1st Street to the west, Grapefruit Boulevard to the north, and 9th Street to the east.”
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Exhibit B
VI. CHAPTER 17.28 C-T TOURIST COMMERCIAL ZONE, SECTION 17.28.020

PERMITTED USES, SUBSECTION (D)

17.28.020 Permitted uses.

1. Theater, including drive-in;

2. Drive-in or walk-up or other fast-food service establishments;

3. Bowling alley;

4. Billiard parlor;

5. Skating rinks;

6. Liquor sales, subject to Section 17.74.015;

7. Bus terminals, depots, and similar transit facilities;

8. Car washes;

9. Tourist camps;

10. Automotive repair garage as an accessory to automobile service station.

PERMITTED USES, SUBSECTION (C)
“17.30.020 Permitted uses.

The following uses are permitted in the M-S zone subject to all provisions of this chapter. …
C. Conditional Uses. The following uses may be permitted in the M-S zone subject to obtaining a conditional use permit as specified in Section 17.74.010.

1. Restaurant with cocktail lounge;
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Exhibit B

2. Stone monument works;

3. Exterminating or disinfecting service firm;

4. Cotton gins, oil mills, vegetable oil plants;

5. Oil cloth or linoleum manufacture;

6. Paint, oil, shellac, turpentine, or varnish manufacture;

7. Plastic manufacture;

8. Planing mills;

9. Poultry dressing and packaging;

10. Wire and wire products manufacture;

11. Service stations;

12. Metal plating;

13. Automotive repair garage as an accessory to automobile service station;

14. Mini storage warehouse;

15. Tattoo and body piercing parlors; and

16. Indoor commercial cannabis cultivation, manufacturing, testing, distribution, retail cannabis businesses (storefront and non-storefront, including microbusinesses) and non-retail microbusinesses Non-storefront cannabis retailers and non-storefront retail microbusinesses, pursuant to Chapters 17.84 and 17.85. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.30.020(A).” VIII. CHAPTER 17.30 M-S MANUFACTURING SERVICE ZONE, SECTIONS 17.30.030

PROPERTY DEVELOPMENT STANDARDS, SUBSECTION (I)
“17.30.030 Property development standards.
…
I. Non-storefront retailer and non-storefront retail microbusiness. A non-storefront retailer or non-storefront retail microbusiness shall have a minimum of one hundred (100) feet separation from any residential structure; be at least five hundred (500) feet from any other storefront retail or non-storefront retail cannabis business; and may not be located in the City’s Pueblo Viejo District. For purposes of this chapter, “Pueblo Viejo District” shall be that area in the city bounded by Cesar Chavez Street to the south, 1st Street to the west, Grapefruit Boulevard to the north, and 9th Street to the east.”
49 Item 2.
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Exhibit B
IX. CHAPTER 17.32 M-H HEAVY INDUSTRIAL ZONE, SECTION 17.32.020

PERMITTED USES, SUBSECTION (C)
“17.32.020 Permitted uses.

1. Acid manufacture;

2. Animal (including fish) products manufacture or processing;

3. Asphalt or asphaltic concrete manufacturing plants;

4. Borrow pits;

5. Brick yards;

6. Breweries and alcoholic beverage manufacture;

7. Bulk distributing stations—Hazardous materials;

8. Cement block, concrete block manufacture, storage yards;

9. Concrete ready-mix plants;

10. Community recycling collection facilities, pursuant to Chapter 17.90;

11. Creosote manufacture;

12. Distillation of alcohol, bones, coal, coal tar, coke, wood;

13. Drop forge industries;

14. Explosives or fireworks manufacture;

15. Feed yards, feed mills;

16. Foundry;

17. Gas manufacture, including but not limited to chlorine and other noxious gases;

18. Glue manufacture;

19. Livestock sales and feed yards;

20. Lamp black manufacture;
50 Item 2.
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Exhibit B

21. Prison, jail, correctional facility or detention facility;

22. Quarries;

23. Rock crushing operations;

24. Smelting operations;

25. Tannery;

26. Tar distillation or tar products manufacture;

27. Transfer station, small scale, pursuant to Chapter 17.90;

28. Winery;

29. Indoor commercial cultivation, manufacturing, testing laboratory, distribution, retail cannabis businesses (storefront and non-storefront, including microbusinesses) and nonretail microbusiness, non-storefront cannabis retailers and non-storefront retail microbusinesses, pursuant to Chapters 17.84 and 17.85. The conditional uses allowed in this subsection shall not be interpreted to include any primary uses listed in Section 17.32.020(A).” X. CHAPTER 17.34 M-W WRECKING YARD ZONE, SECTION 17.34.020

PERMITTED USES, SUBSECTION (C)
“17.34.020 - Permitted uses.
…
C. Conditional Uses. The following uses may be permitted in the M-W zone subject to obtaining a conditional use permit pursuant to Chapter 17.74 of this code.

1. Those conditional uses allowed by Section 17.32.020(C) in the M-H zone;

2. Automobile dismantling or wrecking yard;

3. Automobile impounding yard;

4. Community recycling collection facilities, pursuant to Chapter 17.90;

5. Construction and demo material recycling facilities pursuant to Chapter 17.90;

6. Wood and green waste recycling facilities, pursuant to Chapter 17.90.

PROPERTY DEVELOPMENT STANDARDS, SUBSECTION (K)
“17.34.030 Property development standards.
…
K. Non-storefront retailer and non-storefront retail microbusiness. A non-storefront retailer or non-storefront retail microbusiness shall have a minimum of one hundred (100) feet separation from any residential structure; be at least five hundred (500) feet from any other storefront retail or non-storefront retail cannabis business; and may not be located in the City’s Pueblo Viejo District. For purposes of this chapter, “Pueblo Viejo District” shall be that area in the city bounded by Cesar Chavez Street to the south, 1st Street to the west, Grapefruit Boulevard to the north, and 9th Street to the east.”
XII. CHAPTER 17.46 IP INDUSTRIAL PARK OVERLAY ZONE, SECTION 17.46.023

CONDITIONAL USES
“17.46.023 Conditional uses
The following uses may be permitted in the IP overlay zone subject to obtaining a conditional use permit as specific in Section 17.74.010:

A. Cannabis cultivation, processing, testing, manufacturing, wholesale distribution and/or retail sale (including microbusinesses), subject to the regulatory requirements of Chapters

5.68 and 5.69 of this code.

1. For purposes of this subsection (A), “cannabis cultivation, processing, testing, manufacturing, wholesale distribution, non-retail microbusiness, storefront retail microbusiness, non-storefront retail microbusiness, non-storefront retail and/or storefront retail sale” shall not be deemed as the permitted uses of “drugs manufacture”, “food products processing, manufacturing, canning, preserving and freezing”, “fruit and vegetable packing house”, or “testing laboratories” under Section 17.30.020(A).”
XIII. CHAPTER 17.46 IP INDUSTRIAL PARK OVERLAY ZONE, SECTION 17.46.030

PROPERTY DEVELOPMENT STANDARDS
“17.46.030 Property development standards.

A. Project Area/Lot Requirements

2. Minimum individual Lot Size: Five acres for any lot on which is located a cannabis cultivation, processing, testing, manufacturing or distribution use. For all other lots, One acre.

3. Minimum Lot Width. One hundred eighty (180) feet.
52 Item 2.
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Exhibit B

4. Minimum Lot Depth. Two hundred twenty (220) feet.

6. No retail microbusiness or storefront retail cannabis use shall be located within eight hundred (800) feet of Avenue 52. The distance shall be measured at the nearest point between any part of the building containing retail cannabis use and Avenue 52 street right-of-way line.

B. Front Yard Requirements.

1. Twenty-five (25) feet from the curb on all property fronting on Avenue 54 and Avenue 52.

2. Twenty (20) feet from the curb on all property fronting Industrial Way, Enterprise Way or Polk Street.

3. Ten (10) feet from the curb on all property fronting any local street.

4. All front setbacks shall be landscaped in a manner approved by the planning commission.

5. No buildings, facilities or other improvements shall be allowed in a required front yard except for landscaping or block entryways approved by the planning commission.

Notwithstanding the foregoing, required yards may be used for automobile parking; provided, that landscaping approved by the planning commission is provided along the frontage of the property.

C. Height Limits. The maximum height of any building or structure shall be fifty (50) feet.

D. Distance Between Uses/Buildings. No cannabis cultivation, processing, testing, manufacture, distribution, non-retail microbusiness, retail microbusiness, or storefront retail use shall be located within one thousand (1,000) feet of any residentially zoned lot. The distance shall be measured at the nearest point between any part of the building containing the cannabis use and any lot line of the residential use. Buildings not actually adjoining shall be provided with a minimum eight-foot separation.

E. On-Street/Off-Street Parking and Loading.

1. Off-Street Parking and Loading. Off-street parking and loading facilities shall be provided in accordance with the provisions of Section 17.54.010 of this title.

2. On-Street Parking and Loading. On-street parking or loading shall be prohibited.

F. Walls and Screening.

1. Each development on a lot or parcel of property shall be enclosed with decorative masonry walls and/or wrought iron fencing, subject to review by the planning commission. 53 Item 2.
80237.00840\40032062.1
Exhibit B

2. All parking lots and loading areas shall be screened from view to the street with low decorative masonry walls and landscaping, subject to review by the planning commission.

G. Other Property Development Standards.

3. All developments shall be landscaped in a manner approved by the planning commission.”
XIV. XV. CHAPTER 17.72 ARCHITECTURAL REVIEW, SECTION 17.72.010

ARCHITECTURAL REVIEW, SUBSECTION (G)
“J. Expiration of Architectural Approval.

1. Architectural approval shall expire three hundred sixty-five (365) days two (2) years from approval unless the applicant has: obtained a building permit; paid all applicable fees; commenced construction; and is diligently pursuing completion. A cessation of construction for a period of more than thirty (30) consecutive days shall be presumed to be nondiligent.

2. The architectural review approval that has been granted, but not been exercised within one two years, may be renewed for three one year time extensions only if an application stating reasons for renewal is filed with the planning director at least ten (10) days prior to one two years after the effective date of the architectural review approval. The original approving authority for the architectural review (planning director or planning commission) shall render a decision regarding an extension. In the event that the planning director or planning commission acts to grant a time extension for the architectural approval, the planning director or planning commission may impose any reasonable conditions on the architectural approval as a condition of its renewal. In the event that such additional conditions are not acceptable to the applicant and/or owner, the planning director or planning commission shall deny the time extension request.

3. The criteria for granting a three hundred sixty-five (365) day two (2) year extension are:
a. No significant change has occurred in the surrounding neighborhood; b. The project conforms to existing and any new building and zone requirements; c. A request for the extension is properly filed with the planning director ten (10) days or more prior to expiration; and
d. The applicant states upon affidavit the reasons requiring an extension and such other criteria as the planning department shall set forth in the application. 54 Item 2.
80237.00840\40032062.1
Exhibit B

4. The planning director or planning commission shall grant the extension if good cause is set forth in the application.”
XVI. CHAPTER 17.74 CONDITIONAL USES, SECTION 17.74.050 POSTDETERMINATION PROCEDURES, SUBSECTIONS (A) AND (B) “A. Expiration of Conditional Use.

1. A conditional use shall expire and shall become void two one years following the date on which the conditional use became effective, unless prior to the expiration of one two years a building permit is issued and construction is commenced and diligently pursued toward completion , or a certificate of occupancy is issued.

2. A conditional use that has been granted, but not been exercised within two one years may be renewed for three one-year time extensions only if an application stating reasons for renewal is filed prior to one year after the effective date of the conditional use approval by the planning commission. In the event that the planning commission acts to approve a time extension for the conditional use permit, the planning commission may impose any reasonable conditions on the conditional use permit as a condition of the time extension, provided a modification to the conditional use permit is processed. In the event that such additional conditions are not acceptable to the applicant and/or owner, the planning commission shall deny the time extension request.

B. Revocation of Conditional Use.

1. Review authority. The planning commission may recommend revocation or modification and the city council may revoke or modify the conditional use permit.

3. City council review. At the next regular meeting of the city council after the planning commission has acted, any reported recommendation of the planning commission shall be deemed filed with the city council. Within thirty days thereafter, the city council shall hold a 55 Item 2.
80237.00840\40032062.1
Exhibit B
public hearing upon the question of the revocation or modification of the conditional use permit.

1. A conditional use that has been exercised may be revoked by the commission if one or more conditions are not complied with.

2. An appeal from the commission's decision to revoke a conditional use may be taken to the council. Upon the filing of an appeal, the council shall review the decision in accordance with the procedure prescribed in Section 17.74.040.

XVII. CHAPTER 17.84 RETAIL CANNABIS BUSINESSES, SECTION 17.84.020

DEFINITIONS
“17.84.020 Definitions.

For the purposes of this chapter, the following definitions shall apply. “Applicant” means an owner that applies for a development agreement or conditional use permit under this chapter.
“Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indicia, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable 56 Item 2.
80237.00840\40032062.1
Exhibit B
of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the California Health and Safety Code. “Cannabis products” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
“City manager” means the city manager of the city of Coachella or designee. “Conditional use permit” or “CUP” means a conditional use permit issued under this chapter.
“Customer” means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician’s recommendation, or a primary caregiver.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Development agreement” means an agreement entered into between the city and an applicant under this chapter pursuant to Section 65865 of the California Government Code. “Edible cannabis product” means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code.

When the term “cannabis” is used in this chapter, it shall include “edible cannabis products.” “Non-retail microbusiness” means a commercial business that engages in indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Non-storefront retail microbusiness” means a commercial business that engages in nonstorefront retail cannabis sales and at least two of the following commercial cannabis activities:
indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Non-storefront retailer” means a cannabis retailer that provides cannabis exclusively through delivery.
57 Item 2.
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Exhibit B
“Owner” means any of the following:
(1) A person with an aggregate ownership interest of twenty percent (20%) or more in the applicant, unless the interest is solely a security, lien, or encumbrance; (2) The chief executive officer of a nonprofit or other entity; (3) A member of the board of directors of a nonprofit;
(4) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
(5) An individual entitled to a share of at least twenty percent (20%) of the profits of the commercial cannabis business;
(6) An individual that will be participating in the direction, control, or management of the person applying for a permit. Such an individual includes any of the following: a general partner of a commercial cannabis business that is organized as a partnership; a non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company; an officer or director of a commercial cannabis business that is organized as a corporation.
“Permittee” means any person holding a valid permit under this chapter. A permittee includes all representatives, agents, parent entities, or subsidiary entities of the permittee. “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Premises” means the designated structures and land specified in the conditional use permit application or development agreement that are in the possession of an used by the applicant or permittee to conduct the retail cannabis business. The premises must be a contiguous area and may only be occupied by one permittee.
“Retail cannabis business” means a business that sells and/or delivers cannabis or cannabis products to customers, and includes the following business types: non-storefront retail microbusiness, non-storefront retailer, storefront retailer, and storefront retail microbusiness. “Sell,” “sale,” and “to sell” include any transaction, whereby, for any consideration title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee to the permittee from who the cannabis or cannabis product was purchased. “State license” means a license issued by the state of California, as listed in California Business and Professions Code Section 26050.
“Storefront retailer” means a business that has a storefront open to the public where cannabis or cannabis products are offered for retail sale to consumers, where delivery may or may not be included as part of the business’s operation.
58 Item 2.
80237.00840\40032062.1
Exhibit B
“Storefront retail microbusiness” means a commercial business that engages in retail cannabis sales and at least two of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

A. The Compassionate Use Act of 1996 (“CUA”);
B. The Medical Marijuana Program (“MMP”); and
C. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”).”
XVIII.CHAPTER 17.84 RETAIL CANNABIS BUSINESSES, SECTION 17.84.030

CONDITIONAL USE PERMIT REQUIRED
“17.84.030 Development agreement or Conditional use permit required.

A. The city may authorize a total of ten (10) storefront retailers and/or storefront retail microbusinesses and an unlimited number of non-storefront retailers and non-storefront retail microbusinesses to operate in the city of Coachella pursuant to section 17.84.040. No more than five (5) storefront retailers and/or storefront retail microbusinesses may operate in Sub-Zone #1 (as described in Chapter 17.47). No more than two (2) storefront retailers and/or storefront retail may operate in Sub-Zone #2 (as described in Chapter 17.47), subject to a development agreement.

The remaining storefront retailers and/or storefront retail microbusinesses, in addition to an unlimited number of non-storefront retailers and non-storefront retail microbusinesses that comply with the property development standards listed in Section 17.84.040(B), may operate in Sub-Zone #3 and/or the M-W Wrecking Yard Zone (as described in Chapter 17.34), the IP Industrial Park Overlay Zone (as described in Chapter 17.46), and Sub-Zone #3 (as described in Chapter 17.47).

If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants may be made by a process, and subject to criteria, established by city council resolution. Conditional use permits for all retail cannabis businesses shall be issued in accordance with the requirements in this chapter and Chapters 17.34, 17.46, and

17.47, as applicable.

B. Prior to initiating operations and as a continuing requisite to operating a retail cannabis business, including a non-storefront retail microbusiness, non-storefront retailer, storefront retailer, and storefront retail microbusiness, the owner of the proposed retail cannabis business shall obtain (i) either an executed development agreement or a valid conditional use permit from the city as required by this code, (ii) a regulatory permit from the city manager and shall pay application fees as established by resolution adopted by the city council as amended from time to time, and (iii) a state license for each commercial cannabis activity use authorized under a development agreement or in the conditional use permit. Unless otherwise stated herein in this section, the provisions found in Chapter 17.74 entitled “Conditional Uses” shall apply.

C. Changes in state license type, business owner, or operation will require an 59 Item 2.
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Exhibit B
amendment to the approved conditional use permit.

D. A retailer retail cannabis business with a physical address outside of the city that wishes to deliver cannabis or cannabis products to a customer in the city is not required to obtain a conditional use permit under this chapter, but is required to obtain a city business license.

PERMITTED LOCATIONS AND STANDARDS
“17.84.040 Retail cannabis businesses—Permitted locations and standards.

A. Location Restrictions. Retail cannabis businesses may be located in the following zones: C-N Neighborhood Commercial (Chapter 17.24), C-G General Commercial Use (Chapter

17.26), C-T Tourist Commercial (Chapter 17.28), M-S Manufacturing Service (Chapter 17.30), M-H Heavy Industrial (Chapter 17.32) and M-W Wrecking Yard (Chapter 17.34). in the M-W Wrecking Yard Zone, as described in Chapter 17.34, the IP Industrial Park Overlay Zone, as described in Chapter 17.46, and the RC retail cannabis overlay zone, as described in Chapter 17.47, upon issuance of (i) a fully executed development agreement between the city and owner or valid CUP, whichever is applicable, (ii) a regulatory permit as described in Chapter 5.69, and (iii) a valid state license, or as otherwise permitted in this code.

B. Distance Restrictions.

3. Separation from schools. No retail cannabis business shall be located within two hundred fifty (250) feet of any public or private school (K-12), day care center, or youth center.

The distance shall be measured from the nearest point between any part of the building containing the retail cannabis business to any lot line of the other use. For purposes of this paragraph, the following definitions shall apply:
a. “Day care center” means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities and school age child care centers.
60 Item 2.
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Exhibit B
b. “Youth center” means any public or private facility that is primarily used to house recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

C. Retail cannabis businesses shall comply with all regulations set forth in this chapter, Chapter 5.69, and Chapters 17.34, 17.46, and 17.47, as applicable.

D. Location of Customer Entrance. No retail cannabis business shall have a customer entrance that is adjacent to or directly across the street from a residentially zoned lot.

E. State license(s). Every retail cannabis business shall submit to the city manager a copy of any and all of its state license(s) and local permits required for its operation. If any other applicable state license or local permit for a retail cannabis business is denied, suspended, modified, revoked, or expired, the permittee shall notify the city manager in writing within ten (10) calendar days.

G. Building façade plan. Each CUP applicant for a development agreement or CUP issued under this chapter must submit, along with a development agreement/CUP application, a building façade plan. Building façade plans shall include renderings of the exterior building elevations for all sides of the building. All building façades shall be tastefully done and in keeping with the high architectural quality and standards of the city of Coachella. The retail cannabis business facade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area.

H. Compliance with Chapter 17.74. Except as required in this chapter, development agreements shall be reviewed, issued, denied, suspended, revoked, and/or renewed in accordance with Chapter 17.100 entitled “Development Agreements”, and CUPs shall be reviewed, issued, denied, suspended, revoked, and/or renewed in accordance with Chapter 17.74 entitled “Conditional Uses”. If any provision of this chapter conflicts with any provision of Chapters 17.74 or 17.100 of this code, the provision in this chapter shall control.” XX. CHAPTER 17.84 RETAIL CANNABIS BUSINESSES, SECTION 17.84.060

PROHIBITED OPERATIONS
“17.84.060 Prohibited operations.

Any retail cannabis business that does not have (i) a development agreement or a CUP, (ii) a regulatory permit required under this code, and (iii) a state license(s) is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions.” XXI. CHAPTER 17.84 RETAIL CANNABIS BUSINESSES, SECTION 17.84.070

GROUNDS FOR PERMIT DENIAL, SUSPENSION, AND REVOCATION
“17.84.070 Grounds for permit denial, suspension, and revocation. 61 Item 2.
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Exhibit B
Any conditional use permit considered or issued pursuant to the provisions of this chapter may be denied, suspended, or revoked by the planning commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee:

A. Has knowingly made false statements in the applicant’s application or in any reports or other supporting documents furnished by the applicant or permittee; B. Has failed to maintain a valid state license;
C. Has failed to comply with any applicable provision of the Coachella Municipal Code, including, but not limited to this chapter, the city’s building, zoning, health, and public safety regulations;
D. Has failed to comply with any condition imposed on the conditional use permit; or E. Has allowed the existence of or created a public nuisance in violation of the Coachella Municipal Code.”
XXII. CHAPTER 17.85 COMMERCIAL CANNABIS ACTIVITY, SECTION 17.85.020

DEFINITIONS
“17.85.020 Definitions.

Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter:
“Applicant” means an owner applying for a conditional use permit, desiring to enter into a development agreement, or applying for any other applicable entitlement under this chapter. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” also means marijuana as defined by Section 11018 of the California Health and Safety Code. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, “cannabis” does not mean “industrial hemp” as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.
“Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the California Health and Safety Code. 62 Item 2.
80237.00840\40032062.1
Exhibit B
“Cannabis products” has the same meaning as marijuana products in Section 11018.1 of the California Health and Safety Code. When the term “cannabis” is used in this chapter, it shall include “cannabis products.”
“City manager” means the city manager of the city of Coachella or designee. “Commercial cannabis activity” includes the cultivation, manufacture, laboratory testing, and distribution, including non-retail microbusinesses, (including possession, processing, storing, and labeling incidental to each activity, as applicable) of cannabis and cannabis products. For purposes of this chapter, “commercial cannabis activity” does not include delivery or retail sale of cannabis or cannabis products. Zoning restrictions on retail cannabis businesses can be found in Chapters 17.34, 17.46, 17.47 and 17.84.
“Conditional use permit” or “CUP” means a conditional use permit issued under this chapter.
“Cultivate” or “cultivation” means any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. A cannabis nursery is considered a “cultivation” use.
“Customer” means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician’s recommendation, or a primary caregiver.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Development agreement” means an agreement entered into between the city and an applicant under this chapter pursuant to Section 65865 of the California Government Code. “Distribution” means the procurement, wholesale sale, and transport of cannabis and cannabis products between entities permitted or licensed under this chapter, another local California jurisdiction, or state law.
“Edible cannabis product” means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code.

When the term “cannabis” is used in this chapter, it shall include “edible cannabis products.” “Indoor” means within a fully enclosed and secure building. “Manufacture” means to compound, blend, extract, infuse or otherwise make or prepare a cannabis product.
“Manufacturer” means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
63 Item 2.
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Exhibit B
“Non-retail microbusiness” means a commercial business that engages in indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, and Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Non-storefront retail microbusiness” means a commercial business that engages in nonstorefront retail cannabis sales and at least two of the following commercial cannabis activities:
indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Nursery” means a permittee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis. “Operation” means any act for which a permit is required under the provisions of this chapter, or any commercial transfer of cannabis or cannabis products. “Owner” means any of the following:
(1) A person with an aggregate ownership interest of twenty (20) percent or more in the applicant, unless the interest is solely a security, lien, or encumbrance; (2) The chief executive officer of a nonprofit or other entity; (3) A member of the board of directors of a nonprofit;
(4) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
(5) An individual entitled to a share of at least twenty (20) percent of the profits of the commercial cannabis business;
(6) An individual that will be participating in the direction, control, or management of the person applying for a permit. Such an individual includes any of the following: a general partner of a commercial cannabis business that is organized as a partnership; a non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company; an officer or director of a commercial cannabis business that is organized as a corporation.
“Permittee” means the individual or applicant to whom a conditional use permit has been issued under this chapter. A permittee includes all representatives, agents, parent entities, or subsidiary entities of the permittee.
“Person” includes any individual, firm, co-partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Retail cannabis business” means a business that sells and/or delivers cannabis products to 64 Item 2.
80237.00840\40032062.1
Exhibit B
customers, and includes the following business types: non-storefront retail microbusiness, nonstorefront retailer, storefront retailer, and storefront retail microbusiness. “Shared-use facility” means a premises registered by a primary manufacturing permittee at which multiple cannabis manufacturers may operate at separate times. “Storefront retailer” means a business that has a storefront open to the public where cannabis or cannabis products are offered for retail sale to consumers, where delivery may or may not be included as part of the business’s operation.
“Storefront retail microbusiness” means a commercial business that engages in retail cannabis sales and at least two of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Testing” means subjecting cannabis to laboratory testing for active compounds and purity prior to distribution for consumption.
“Testing laboratory” means a laboratory, facility, or entity in California, that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state; and (2) Licensed by the California Bureau of Marijuana (or Cannabis) Control within the California Department of Consumer Affairs (when such licenses begin to be issued).

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

COMMERCIAL CANNABIS ACTIVITY PERMITTED
“17.85.030 - Commercial cannabis activity permitted.

Commercial cannabis activity permitted under this chapter includes indoor cultivation, interim outdoor cultivation, manufacture (including shared-use facilities), distribution, testing, and non-retail microbusinesses (including possession, processing, storing, and labeling incidental to such activity). Prior to engaging in any such commercial cannabis activity in the city, one must first obtain either a development agreement or a conditional use permit (CUP), and a regulatory permit as required by this code, subject to the provisions of the CUA, MMP, MAUCRSA, and any other state laws pertaining to cannabis.”
65 Item 2.
80237.00840\40032062.1
Exhibit B
XXIV. CHAPTER 17.85 COMMERCIAL CANNABIS ACTIVITY, SECTION 17.85.040

CONDITIONAL USE PERMIT REQUIRED
“17.85.040 - Conditional use permit or development agreement required.

Prior to initiating operations and as a continuing requisite to operating a commercial cannabis activity, the applicant shall obtain a validly issued CUP as provided in Chapter 17.74 entitled “Conditional Uses” and a regulatory permit and a state license for each use authorized in the CUP. of this municipal code or enter into a fully executed development agreement agreed to by the city council. If any provision of this chapter conflicts with any provision of Chapter 17.74 of this code, the provision in this chapter shall control. An applicant must obtain a separate CUP for each commercial cannabis activity the applicant wishes to operate. Separate CUPs may be issued for indoor cannabis cultivation versus interim outdoor cannabis cultivation. Each CUP will include a condition of approval requiring that the permittee also obtain and maintain an indoor cultivation, interim outdoor cultivation, manufacture, distribution, non-retail microbusiness, or testing laboratory regulatory permit required by this code. Each CUP for interim outdoor cultivation may include a condition of approval that limits outdoor cultivation activities to a specified duration not to exceed the sooner of forty eight (48) months, or the first phase of construction establishing a new residential or commercial use. If the condition is accepted by the applicant, the City may thereafter record a covenant memorializing this restriction against the property, which shall include a reference to the approved CUP. The City Manager or his/her designee shall make efforts to notify the permittee a year prior to CUP expiration of the need to renew the CUP.” XXV. CHAPTER 17.85 COMMERCIAL CANNABIS ACTIVITY, SECTION 17.85.050

PERMITTED LOCATIONS AND STANDARDS
“17.85.050 - Commercial cannabis activity—Permitted locations and standards.

A. Indoor commercial cultivation, manufacturing, testing laboratory, and distribution activities.

1. Location. Indoor commercial cultivation, manufacturing, testing laboratory, distribution, and non-retail microbusiness uses may be located Permitted uses be located in any manufacturing service (M-S) zone, heavy industrial (M-H) zone, and wrecking yard (M-W) zone upon issuance of a conditional use permit and regulatory permit. , or manufacturing service - industrial park overlay zone (IP) in the city, upon issuance of a CUP and a regulatory permit.

2. Property development standards.
(a) In M-W zone — Permitted uses should be restricted to a site having a minimum of five (5) acres in size, with a minimum paved street frontage of two hundred fifty (250) feet.

Permitted uses may not be established in the M-W zone on a multi-tenant industrial park or business park site existing on the effective date of this ordinance. A CUP to develop a new standalone commercial cannabis activity facility or a multi-tenant facility within a minimum site area of five acres may be pursued.
(b) In MS-IP Overlay zone — Permitted uses should be restricted to sites having a minimum project area of ten (10) acres and a minimum lot size or grouping of lots of at least five (5) acres.
66 Item 2.
80237.00840\40032062.1
Exhibit B

B. Interim outdoor commercial cannabis cultivation.

2. Property development standards. All interim outdoor commercial cannabis cultivation sites:
(a) shall be located on a site having a minimum of one (1) acre in size. (b) shall have a The maximum canopy size equal to the lesser of two (2) acres or that is no larger than the maximum size authorized by the State license for that business. (c) shall provide a minimum twenty-foot (20 ft.) setback on all sides with an opaque fencing material, subject to review and approval by the Planning Director, to screen the outdoor grow areas from view to public streets.

3. Distance Restrictions. No interim outdoor commercial cannabis cultivation shall be located within one thousand (1,000) feet of any public or private school (K-12), day care center or 67 Item 2.
80237.00840\40032062.1
Exhibit B
youth center. The distance shall be measured from the nearest point between the property line containing the interim outdoor commercial cannabis cultivation use to any lot line of the other use. “Day care center” means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities and school age child care centers. “Youth center” means any public or private facility that is primarily used to house recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. (a) five hundred (500) feet of another interim outdoor commercial cannabis cultivation use.

XXVI. CHAPTER 17.85 COMMERCIAL CANNABIS ACTIVITY, SECTION 17.85.080

PROHIBITED OPERATIONS
“17.85.080 Prohibited operations.

Any commercial cannabis activity that does not have both (i) a development agreement or a CUP and (ii) a regulatory permit required under this code is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including but not limited to civil injunctions.” 68 Item 2.

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Outdoor Cultivation
South Employment District
North Employment District
Downtown Expansion
Subzone 3
Subzone 2
Subzone 1
Subzone 3
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, Oand the GIS User Community
0 1/2 1 Mile 2
Scale
Coachella Cannabis Business Program
Legend
Cannabis Zones
North Employment District
Downtown Expansion
South Employment Distict
Outdoor Cultivation
Retail Subzone 1
Retail Subzone 2
Retail Subzone 3
69 Item 2.

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AVENUE 49

LANDFILL RD
4TH ST

REQUAAVE

INDUSTRIAL WAY

ELLAAVE

DILLON AVE
9TH ST

KEENE LN

DR CARREON BLVD
AVENUE 53

VALLEY RD
2ND ST

FIESTA RD

ALBION DR

MITCHEL DR

BAGDAD AVE

ENTERPRISE
WAY

CALLE ROJO

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Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community
Legend
City Boundary
Cannabis Subareas
Downtown Expansion
North Employment District
South Employment District
600 foot Residential Buffer
ZONING
M-W. Auto Wrecking
M-H, Heavy Industrial
M-S, Manufacturing Service
0 0.325 0.65 1.3 1.95 2.6
Miles Created April 2022
600 Foot Residential Zone Distance Map
70 Item 2.

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GRAPEFRUIT BLVD
6TH ST

VISTA DEL SUR

RULON LN

CABAZON AVE
AVENUE 49
4TH ST

LANDFILL RD

INDUSTRIAL WAY

ELLAAVE

DILLON AVE
9TH ST

KEENE LN

DR CARREON BLVD
AVENUE 53

VALLEY RD

COMMERCE ST

FIESTA RD

ALBION DR

MITCHEL DR

BAGDAD AVE

ENTERPRISE
WAY

CALLE ROJO

DATE AVE

BERINGER
D
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CENTER ST

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SH-86
SH-86S
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community
Legend
City Boundary
Cannabis Subareas
Subzone 1
Subzone 2
Subzone 3
ZONING
C-E, Commercial Entertainment
C-G, General Commercial
C-N. Neighborhood Commercial
C-T, Tourist Commercial
0 0.325 0.65 1.3 1.95 2.6 C-T, PUD Miles
City of Coachella - Commercial Zoning District Map
71 Item 2.

CurrentTax Rates
• Square FootageTax – Cultivation & Manufacturing
• 20,000 sq. ft. or less $15 per square foot annually
• Gross Receipts Tax – All Cannabis Business Activities • Cultivation 4%, Retail 6%, Manufacturing 2%, Distribution 2%, Testing 1% CurrentTax Revenues
2021
Cultivation 4% 1,229,184 Manufacturing 2% 32,125 Distribution 2% 75 Retail 6% 636,130 Testing 1% ‐ 1,897,514
Fiscal Tax
2022 1,800,000 2021 1,897,514 2020 466,212 2019 642,351 2018 36,375 72 Item 2.

Recommended Structure
• Remove square footage tax (Cultivation and Manufacturing)• Gross receipts • Cultivation ‐ 3% (with 2 year step down 1% per year)• Retail ‐ 6%• Manufacturing ‐ 2%• Distribution ‐ 0%• Testing ‐ 0%• Direct expected costs • $245,000 per year over 2 years.• Expected to be offset long term by new cultivation businesses. 73 Item 2.

Kismet
Green Haus
HOTN Libra
Lighthouse
Coachella Smoke
Pueblo Cannabis
Coachella Releaf
Coachella Greenery
Coachella Canna Club
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Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, Oand the GIS User Community
0 1/2 1 Mile 2
Scale
Coachella Cannabis Dispensary Locations
Legend
Dispensary Status
Expired
Open
Plan Check
Under Construction
74 Item 2.

Existing City of Coachella Cannabis Business Regulations Distance from
schools
Distance
from
residential
Distance
from other
cannabis
uses
Permitted Locations Size Limit # restrictions CUP Required Overlay Zone Required Cannabis Regulatory Permit
Development
Agreement (DA)
Retail CannabisStorefront or
Storefront
microbusiness
(CMC Chapter

17.84)
250 ft from
from schools,
day care or
youth center if
in RC Overlay
Zones
None None Subzone 1, 2, or 3, MW Wrecking Yard
Zone, IP Overlay Zone
None 10 Yes Retail Cannabis or IP Overlay
Zone required if not in M-W
Zone
Yes Required for SubZone #2 only
Retail CannabisNon Storefront
retailer or Non
Storefront
microbusiness
(CMC Chapter

17.84)
250 ft from
from schools,
day care or
youth center if
in RC Overlay
Zones
100 feet
from
residential
structure
500 feet from
storefront
retail or nonstorefront
retail
cannabis
business
M-W, Sub Zone #3.

Prohibited in Sub
Zone 1, 2 and the
Pueblo Viejo District.

IP Overlay Zone. Have
been allowed in
Commercial Zones.

None None Yes Retail Cannabis or IP Overlay
Zone required if not in M-W
Zone
Yes No
Commercial
Cannabis
Activity (CMC
Chapter 17.85) -
cultivation,
manufacture,
laboratory
testing, and
distribution,
including nonretail
microbusinesses
None 600 feet
from
residential
zoned lot. IP
overlay zone
requires
1,000 feet
from
residential
zoned lot.

M-W Zone, IP Overlay
Zone. Testing allowed
in C-G Zone. IP Zone
requires retail
microbusiness or
storefront retail be
800 feet from Ave 52
5 acres, 250
ft frontage in
M-W Zone.

Testing
exempt from
250 ft
frontage
requirement.
10 acre
project area
and lot size
of 5 acres in
IP Zone.

None Yes or DA IP Overlay Zone required if not
in M-W Zone.

Yes Yes or CUP
Commercial
Cannabis
Activity (CMC
Chapter 17.85)–
Outdoor
Cannabis
Cultivation
1,000 ft from
schools, day
care or youth
center
None None A-R zone, A-T zone, RS zone, R-M zone, and
C-G zone in
designated
geographic area - Ave
48 on the north, the
All-American Canal on
the east, Ave 52 on
the south, and 86
Expressway and Tyler
Street.
1 acre
minimum
None Yes or DA No Yes Yes or CUP
75 Item 2.

Proposed City of Coachella Streamline Cannabis Business Regulations Amendments Distance from
schools
Distance
from
residential
Distance
from other
cannabis
uses
Permitted Locations Size Limit # restrictions CUP Required Overlay Zone Required Cannabis Regulatory Permit
Development
Agreement
Retail CannabisStorefront or
Storefront
microbusiness
(CMC Chapter

17.84)
250 ft from
from schools,
day care or
youth center if
in RC Overlay
Zones
None None Commercial Zones (CN, C-G, C-T), M-W
Wrecking Yard , M-S
Manufacturing
Service, M-H Heavy
Industrial Zone.

None 10 Yes No Yes No
Retail CannabisNon Storefront
retailer or Non
Storefront
microbusiness
(CMC Chapter

Prohibited in Pueblo
Viejo District.

None None Yes No Yes No
Commercial
Cannabis
Activity (CMC
Chapter 17.85) -
cultivation,
manufacture,
laboratory
testing, and
distribution,
including nonretail
microbusinesses
None 600 feet
from
residential
zoned lot. IP
overlay zone
requires
1,000 feet
from
residential
zoned lot.

None M-S and M-W Zones.

Testing allowed in C-G
Zone. 800 feet from
Ave 52.

None None Yes or DA No Yes No
Commercial
Cannabis
Activity (CMC
Chapter 17.85)–
Outdoor
Cannabis
Cultivation
1,000 ft from
schools, day
care or youth
center
None None A-R zone, A-T zone, RS zone, R-M zone, and
C-G zone in
designated
geographic area - Ave
48 on the north, the
All-American Canal on
the east, Ave 52 on
the south, and 86
Expressway and Tyler
Street.
1 acre
minimum
None Yes No Yes No
76 Item 2.

Coachella City CouncilJune 1, 2022

Coachella City Council
June 1, 2022