FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM 4.i
MEETING DATE January 9, 2025
PREPARED FOR Mayor and Town Council
PREPARED BY Janet Coleson, Town Attorney
Heather Abrams, Town Manager
SUBJECT Waive Second Reading, Read by Title Only and Adopt an Ordinance Repealing Town Code Article III of Chapter 5.56 Cannabis Deliveries, Section 5.56.300 Adult-Use Cannabis Deliveries by Certain Existing Medical Marijuana Dispensaries; and Repealing and Replacing Town Code Section 5.56.170 Application of This Article to Existing Medical Marijuana Dispensaries, with Application of This Article to Existing Medical Cannabis Retailer, Allowing the Marin Alliance for Medical Marijuana (MAMM) to Relocate to 1591-1593 Sir Frances Drake Blvd Upon Fulfillment of Certain Requirements
RECOMMENDATION
Waive Second Reading, Read by Title Only and Adopt an Ordinance Repealing Town Code Article III of Chapter 5.56 Cannabis Deliveries, Section 5.56.300 Adult-Use Cannabis Deliveries by Certain Existing Medical Marijuana Dispensaries; and Repealing and Replacing Town Code Section 5.56.170 Application of This Article to Existing Medical Marijuana Dispensaries, with Application of This Article to Existing Medical Cannabis Retailer, Allowing the Marin Alliance for Medical Marijuana (MAMM) to Relocate to 1591-1593 Sir Frances Drake Blvd Upon Fulfillment of Certain Requirements
BACKGROUND
Marin Alliance for Medical Marijuana (MAMM), owned and operated by Lynette Shaw, was issued a Conditional Use Permit (CUP) at the School Street location in June of 1997 with a list of 84 conditions of approval. The following is a brief history of the CUP for that location.
In June of 1998 the Planning Commission reviewed MAMM’s CUP to determine whether the business was being operated in compliance with the conditions of approval. Deficiencies were noted and after correcting the noted deficiencies, the Planning Commission voted to review the CUP again in 2000.
In June of 2000 the Fairfax Police Department responded to a citizen complaint concerning the cultivation of marijuana at 132 Scenic Road, Lynette Shaw’s residence. The officers observed 61 plants of varying sizes, and they were informed by Ms. Shaw that the plants were for her patients at the Marin Alliance for Medical Marijuana. Cultivation of marijuana in a residential zone for use at the business was a violation of the original CUP conditions.
The Planning Commission staff report for the September/November, 2000 CUP review noted that the applicant/owner/operator had expanded the business into the commercial space next door which had been turned into a waiting room for clients. The report underscored the applicant/owner/operator’s frequent changes to the business operations without regard for the conditions of the CUP. The Police Chief at the time pointed out that the hours had been changed and the business was now open during Little League ball games at the ball field in violation of the CUP conditions. As a result, the Planning 2 Commission temporarily suspended the CUP until the January 2001 meeting and directed the applicant/owner/operator to comply with all the CUP conditions by that date. Before the January meeting, however, the matter was brought before the Council on a directed referral on December 4, 2000. The Council overturned the Planning Commission temporary suspension of the CUP and sent the CUP back to the Planning Commission for further review and action with accompanying direction.
In January, March, April and September of 2001, the Planning Commission held meetings regarding the CUP for MAMM, at which time the Commission allowed the CUP to remain in effect until further review in January of 2002 with the following change to the conditions of approval: the responsibility of advising MAMM of youth activities that would be occurring within 500 feet of the dispensary was shifted to the organizers of the events, baseball practices and games. The condition required organizers to give MAMM 7 days prior notice of the event. During the event, MAMM had to remain closed and have "closed" signs posted on all entrances.
In April, June and August of 2002, the Commission reviewed the CUP.
At the August 15, 2002, Planning Commission meeting, the Commission extended MAMM’s CUP with minor additional conditions.
On June 17, 2010, the Planning Commission approved a modification of CUP 97-UP-2 with the most significant modifications being the following: 1) The applicant/owner/operator may operate a medical marijuana delivery service and deliver to patients unable to get to the dispensary. 2) The applicant/owner/operator shall not distribute any amount of medicinal marijuana which exceeds one ounce to, or on behalf of, any one person during any consecutive 7 day period without a physicians written recommendation. And 3) The condition that the Dispensary not be open during practices or games of the West Marin Little League was removed. A list of the 2010 conditions of approval, which are the currently applicable conditions, is attached to this staff report as Attachment B.
On July 8, 2019, the Town Manager, issued an Adult-Use Cannabis Delivery Permit for MAMM, an existing medical marijuana dispensary, to conduct retail sales of adult-use cannabis and cannabis products, exclusively by delivery from the existing premises subject to terms and conditions and pursuant to the newly passed cannabis permit code provisions.
At the November 18, 2024 Town Council meeting, the Council heard testimony that MAMM was being evicted from the current location at School Street through no fault of the owner/operator, Lynette Shaw, and directed the Town Attorney’s Office to review her request to relocate without having to participate in the competitive process required by the Town Code. After receiving the proposed new address for MAMM, the attached Code revisions were drafted that, if adopted, would result in MAMM being allowed to relocate to 1591-1593 Sir Frances Drake Blvd., with requirements designed to be as close to the current requirements as possible, while still being mindful of the zoning requirements for the new location.
Since MAMM has a CUP at the current School Street location and CUPs run with the land (are not transferable to a new location), and since medicinal cannabis storefront retailer is not a use permitted in the Highway Commercial zone, the Planning Commission will need to review the proposed use to determine compatibility and any conditions of approval for a CUP. After granting a CUP, the owner/operator also will need to obtain a cannabis business permit for the medicinal cannabis storefront.
3 After MAMM had been operating a medical cannabis dispensary at the current location for 22 years, the Town Council allowed the owner/operator to obtain an adult-use cannabis, delivery only permit from that same location.
DISCUSSION
At the December 4, 2024 Council Meeting there was robust discussion among Council Members, MAMM, and members of the public who spoke for and against the proposed relocation. The Council modified the proposed ordinance to not require a one-year trial period after granting of a CUP before the owner could apply for an adult-use cannabis, delivery only permit. These changes were read into the record and the ordinance then passed first reading. At this January 9, 2025 Council Meeting, the Council may complete the second reading which will allow the ordinance to take effect in 30 days.
During this time, MAMM can prepare and submit its CUP application, which will then be heard by the Planning Commission.
FISCAL IMPACT
Although there is no sales tax charged on medicinal cannabis, there is a State of California excise tax.
The Town does not have a local tax on cannabis. There is no anticipated fiscal impact from adoption of this ordinance.
ATTACHMENT
Ordinance for Second Reading (Adoption)
Ordinance No.
ORDINANCE NO.
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX AMENDING THE FAIRFAX TOWN CODE, REPEALING ARTICLE III OF CHAPTER 5.56 CANNABIS DELIVERIES AND REPEALING AND REPLACING SECTION 5.56.170
APPLICATION OF THIS ARTICLE TO EXISTING MEDICAL MARIJUANA DISPENSARIES
WITH APPLICATION OF THIS ARTICLE TO EXISTING MEDICAL CANNABIS RETAILER WHEREAS, the existing medicinal cannabis storefront retailer in the Town of Fairfax is being evicted from the current location through no fault of the owner/operator; and WHEREAS, the existing cannabis retailer’s owner/operator has requested the Town Council allow the businesses to relocate to 1591-1593 Sir Frances Drake Blvd. without having to compete for a permit pursuant to Town Code Section 5.56.070; and WHEREAS, the Town Council has expressed support for medicinal cannabis as provided in Chapter 9.16 Miscellaneous Policies Regarding Medical Use of Marijuana; and NOW THEREFORE, the Town Council of the Town of Fairfax does ordain as follows:
Section 1. The above recitals are true and correct and are hereby incorporated into this ordinance by this reference.
Section 2. Fairfax Town Code, Article III of Chapter 5.56 Cannabis Deliveries, Section
5.56.300 Adult-Use Cannabis Deliveries by Certain Existing Medical Marijuana Dispensaries is hereby repealed.
Section 3. Fairfax Town Code Section 5.56.170 Application of this Article to Existing Medical Marijuana Dispensaries is hereby repealed and replaced with the following provision:
“Section 5.56.170 Application of this Article to Existing Medical Cannabis Retailer The Town Council finds that the cannabis medicinal use storefront retailer existing and legally operating in the Town of Fairfax as of December 4, 2024 must relocate by January 1, 2025 due to no fault of the owner/operator. The Council hereby permits this existing retailer to relocate to a storefront located at 1591-1593 Sir Frances Drake Blvd., provided however, that prior to opening for business, the owner/operator:
1) submit an application to the Planning Commission and be granted a Conditional Use Permit (CUP) in the Highway Commercial zone for a medicinal use storefront retailer, as the existing CUP at the current location runs with the land and is not transferable to a new location; and
2) should the owner/operator be granted a CUP for a medicinal use storefront, obtain a permit for a medicinal use storefront retailer and an adult use delivery only retailer permit to be operated at the same location as the medicinal use storefront, pursuant to Town Ordinance No.
Code Chapter 5.56 Cannabis Businesses, with the exception of the requirement of participating in a competitive process pursuant to Town Code Section 5.56.070, and in conformance with Town Code Chapter 17.110 Cannabis Uses as the owner/operator’s current permits are not transferable to a new location pursuant to Town Code Section
5.56.130. Fees for the required permits shall be prorated according to the amount of time remaining on the existing permits.”
Section 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications, and to this end the provisions of this Ordinance are declared to be severable.
Section 5. Effective Date. This ordinance shall be effective thirty (30) days after the date of its adoption.
Section 6. Posting. Within fifteen days after the passage of this ordinance, the Town Clerk shall cause it or a summary of it to be posted in the following three places: Fairfax Town Hall; the Fairfax Women’s Club; and the Fairfax Post Office.
The foregoing ordinance was introduced at a special meeting of the Town Council of the Town of Fairfax held on the 4th December, 2024.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Fairfax, held on the 9th day of January 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
LISEL BLASH
MAYOR
ATTEST:
_________________________________
CHRISTINE FOSTER
DEPUTY TOWN CLERK