Administrative
Report
L.1., File # 25-0196 Meeting Date: 2/11/2025
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, COMMUNITY SERVICES DIRECTOR
TITLE
PUBLIC HEARING FOR INTRODUCTION AND FIRST READING OF ORDINANCES AMENDING TITLE 6 BUSINESSES, PROFESSIONS, AND TRADES, TITLE 10, CHAPTER 2, ZONING AND LAND USE AND TITLE 10, CHAPTER 5 COASTAL LAND USE PLAN IMPLEMENTING
ORDINANCE PERTAINING TO CANNABIS REGULATIONS, ADOPTION OF A RESOLUTION AMENDING THE CITY’S COASTAL LAND USE PLAN, AND RECOMMENDING THAT THE CITY
COUNCIL ADOPT CATEGORICAL EXEMPTIONS FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) FOR THE AMENDMENTS
PROCEDURES:
1. Open the public hearing, take testimony and deliberate;
2. Close the public hearing; and
3. Introduce the following three ordinances and adopt the following resolution:
INTRODUCE BY TITLE ONLY ORDINANCE NO. 3287-25, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADDING CHAPTER 6 TO TITLE 6
OF THE REDONDO BEACH MUNICIPAL CODE TO REGULATE COMMERCIAL CANNABIS
BUSINESSES
INTRODUCE BY TITLE ONLY ORDINANCE NO. 3288-25, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING TITLE 10, CHAPTER 2 SECTION 10-2.1626 OF THE REDONDO BEACH MUNICIPAL CODE PERTAINING TO
COMMERCIAL CANNABIS ACTIVITIES INLAND ZONES OF THE CITY INTRODUCE BY TITLE ONLY ORDINANCE NO. 3289-25, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING TITLE 10, CHAPTER 5 SECTION 10-5.1626 OF THE REDONDO BEACH MUNICIPAL CODE PERTAINING TO
COMMERCIAL CANNABIS ACTIVITIES IN COASTAL ZONES OF THE CITY ADOPT BY TITLE ONLY RESOLUTION NO. CC-2502-004, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, REQUESTING CERTIFICATION
BY THE CALIFORNIA COASTAL COMMISSION OF AMENDMENTS TO THE COASTAL LAND USE PLAN IMPLEMENTATION ORDINANCE (TITLE 10, CHAPTER 5 OF THE MUNICIPAL CODE)
CONSISTENT WITH STATE LAW, WHICH IS INTENDED TO BE CARRIED OUT IF A MANNER FULLY IN CONFORMITY WITH THE COASTAL ACT; AND PROVIDING THAT THE AMENDMENTS TO THE CITY’S LOCAL COASTAL PROGRAM WILL TAKE EFFECT AUTOMATICALLY UPON
L.1., File # 25-0196 Meeting Date: 2/11/2025
TO THE CITY’S LOCAL COASTAL PROGRAM WILL TAKE EFFECT AUTOMATICALLY UPON
COASTAL COMMISSION APPROVAL PURSUANT TO PUBLIC RESOURCES CODE SECTION 30514 AND TITLE 14, SECTION 13551 OF THE CALIFORNIA CODE OF REGULATIONS
EXECUTIVE SUMMARY
On September 6, 2022, following recommendations from the Planning Commission, the City Council adopted cannabis regulatory ordinances for both inland and coastal areas of Redondo Beach, permitting no more than two storefront commercial cannabis retailers to operate within the City. The Inland Ordinance became effective 30 days after adoption, while the Coastal Ordinance took effect upon certification by the California Coastal Commission on March 9, 2023.
At the December 19, 2023 City Council meeting, portions of the regulatory Ordinances and the permit application process were identified as needing further review. City Council directed staff to engage Tierra West Advisors, Inc. (TWA) to review the final cannabis regulatory Ordinances, draft Commercial Retail Cannabis (CRC) permitting guidelines, and assist with application processing.
TWA’s recommended revisions to the City’s regulatory Ordinances were presented at meetings in May and September 2024, and staff have continued to refine the scoring criteria for the evaluation of permit applications over the course of several subsequent Council meetings. On January 21, 2025, the City Council discussed the final language in the ordinances and directed the following:
1) Directed the Planning Commission to review the ordinances at a special meeting/public hearing to be held on February 3, 2025, and
2) Directed staff to schedule a public hearing before the City Council on February 11, 2025 for consideration of introduction and first reading of the ordinances.
The Planning Commission met on February 3rd and deliberated over buffer area amendments. In particular, the Commission’s discussion revolved around the added buffer at Dale Page Park and the possible removal of the 1000-foot buffer between business operators. Ultimately, the Commission voted to recommend that the 1000-foot buffer be kept in the Ordinances.
Attached to this report are the final drafts of the updated Cannabis Regulatory Ordinances, which capture the direction provided by Council to staff over the course of the last year. The public hearing provides the City Council an opportunity to consider the ordinances and approve them for introduction and first reading.
In addition to the consideration of the Ordinances, a resolution to forward the coastal regulations to the California Coastal Commission for certification has been included for possible action.
BACKGROUND
The identification of cannabis regulations most appropriate for Redondo Beach began in 2018 with the appointment of a Cannabis Steering Committee. Following Planning Commission consideration and several City Council discussions on the topic, the current Cannabis Regulatory Ordinances were adopted on September 6, 2022. The Ordinances allow no more than two storefront commercial cannabis retailers to operate in the City. There are three Ordinances under consideration:
· Ordinance No. 3241-22: Amending Title 10, Chapter 2 Section 10-2.1626 of the RBMC to allow commercial cannabis activities in inland zones of the City · Ordinance No. 3235-22: Amending Title 10, Chapter 5 Section 10-5.1626 of the RBMC to
L.1., File # 25-0196 Meeting Date: 2/11/2025
· Ordinance No. 3235-22: Amending Title 10, Chapter 5 Section 10-5.1626 of the RBMC to allow commercial cannabis activities in coastal zones of the City · Ordinance No. 3240-22: Regulating commercial cannabis activities in Redondo Beach Ordinance Nos. 3241-22 and 3235-22 provide definitions and zoning requirements for a cannabis permit program, as well as other parameters. These two Ordinances are identical in content, other than the zone to which they apply. Ordinance No. 3240-22 delves into application procedures and operating standards, and also sets the tax rate.
At the December 19, 2023 City Council meeting, portions of the regulatory Ordinances and the permit application process were identified as needing further review. At that time, the City Council provided direction to engage TWA to review the City’s existing Cannabis Regulatory Ordinances and assist with development and review of the cannabis permit application process.
Since the December 19, 2023 meeting, numerous elements of the Cannabis Regulatory Ordinances have been discussed by Council, including updated buffers, final selection of permittees, and evaluation criteria.
The following list provides the dates in which the cannabis ordinances were agendized for Council review:
· December 19, 2023
· March 5, 2024
· April 23, 2024
· May 14, 2024
· September 17, 2024
· October 8, 2024
· October 15, 2024
· November 12, 2024
· December 17, 2024
· January 21, 2025
On January 21, 2025, the City Council provided comments/direction on the final elements of the regulatory Ordinances and, specifically, 1) directed the Planning Commission to review the ordinances at a special meeting/public hearing to be held on February 3, 2025, and 2) directed staff to schedule a public hearing before the City Council on February 11, 2025 for consideration of introduction and first reading of the Ordinances.
The Planning Commission met on February 3rd, with six of the seven Commissioners available to attend the Special Meeting. After a staff presentation and public comments, the Commission deliberated on the amendments. Most notably, discussion revolved around the following amendments:
Council-directed removal of Section (c)(6)(d)(B):
No retailer shall be established or located within 1,000 feet, measured from the nearest property lines of each of the affected parcels, of any other cannabis retailer.
L.1., File # 25-0196 Meeting Date: 2/11/2025
Council-directed addition of Section (c)(6)(d)(D):
No retailer shall be established or located within 150 feet of Dale Page Park, measured from the nearest property lines of each of the affected parcels.
A motion was made to recommend that the Council keep Section (c)(6)(d)(B) in the Ordinance, and remove Section (c)(6)(d)(D). That motion failed. A new motion was made to recommend only that Section (c)(6)(d)(B) be kept in the Ordinance; this motion passed.
In compliance with the California Environmental Quality Act (CEQA) of 1970, as amended, and State and local guidelines adopted pursuant thereto, the zoning amendments captured by the Ordinances qualify for CEQA exemption under Section 15060(c)(2); the activity will not result in direct or reasonably foreseeable physical change in the environment and Section 15060(c)(3); as the activity is not considered a project under CEQA Section 15378.
In addition to the Ordinances, a resolution to forward the coastal regulations to the California Coastal Commission for certification is part of the public hearing consideration. If the Ordinances are approved for introduction and first reading, an item for consideration of adoption of the ordinances in the inland zone will be placed on the February 18th City Council Meeting Agenda. The Ordinance for the coastal zone will be returned for consideration of City Council adoption on March 11th.
COORDINATION
This agenda item was prepared by the Community Services Department in coordination with the City Attorney’s Office, City Manager’s Office, and the Fire, Police, Financial Services and Community Development Departments. The Ordinances were initially drafted by TWA, updated by staff, and reviewed by the City Attorney’s Office.
FISCAL IMPACT
It is estimated that each licensed site in Redondo Beach could provide $225,000 to $450,000 in additional annual General Fund cannabis business tax revenue, provided the City moves forward with the adoption of a regulatory ordinance at a tax rate of 4.5%. At this time, it is difficult to determine what impact taxing cannabis delivery will have on General Fund revenue.
The fiscal impact to the City for CRC permit application processing and management is currently unknown. A fee study to determine these costs must be completed. The application fees are expected to provide full City cost recovery for the processing of all license applications, including any related consulting services costs. Preliminary estimates indicate an application fee between $12,000 and $16,000 per applicant. An annual regulatory fee is anticipated to be within the same range for each CRC permittee doing business in the City. These estimates are expected to change, and will be refined, based on the final application process determined by Council and the staffing resources needed to complete the application review.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Ord - No. 3287-25 Regulating Commercial Cannabis Businesses
L.1., File # 25-0196 Meeting Date: 2/11/2025
· Ord - No. 3288-25 Allowing Commercial Cannabis Activities (Inland Zones) · Ord - No. 3289-25 Allowing Commercial Cannabis Activities (Coastal Zones) · Reso - No. CC-2502-004 Requesting Certification by the California Coastal Commission · Buffer Map