RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION GRANTING CANNACRUZ, INC.’S APPEALS OF THE SALINAS PLANNING COMMISSION’S DENIAL OF CONDITIONAL USE PERMIT 2022-048 AND THE SELECTION COMMITTEE’S DENIAL OF COMMERCIAL CANNABIS PERMIT 2023-007 WHEREAS, on August 23, 2022, CannaCruz, Inc. (“CannaCruz”) submitted an application for Conditional Use Permit 2022-048 (“CUP 2022-048”) to change the use of an existing 20,162 square-foot building located at 1228 South Main Street in the city of Salinas, from “retail” to a two-tenant “shopping center”. The two shopping center uses include a 9,413 square-foot furniture store retail use in the front portion of the building and a 10,479 square-foot cannabis dispensary with associated delivery and distribution retail uses in the rear portion of the building; and WHEREAS, the proposed shopping center includes 40 off-street parking spaces, which is below the 81 off-street parking spaces required by the Salinas Zoning Code; and WHEREAS, CannaCruz’s application for CUP 2022-048 included requests for a 41-space (51%) parking reduction pursuant to Salinas Zoning Code Table 37-50.100, an exemption from the requirements of Salinas Zoning Code Section 37-50.200 to allow for internal waste storage to be located within an existing structure, and alternative means of compliance for landscaping pursuant to Salinas Zoning Code Section 37-50.690; and WHEREAS, 1228 South Main Street is located within the Commercial Retail South Main Street Focused Growth Overly District (CR-FG-3); and WHEREAS, at the request of CannaCruz, on March 20, 2024, the Salinas Planning Commission held a duly noticed public hearing to consider CUP 2022-048, which public hearing was continued by the Planning Commission to April 3, 2024; and WHEREAS, on April 3, 2024, the Salinas Planning Commission held a duly-noticed public hearing to consider CannaCruz’s application for CUP 2022-048, at which all those wishing to be heard were allowed to speak or present written comments and other materials; and WHEREAS, at the April 3, 2024, public hearing the Salinas Planning Commission considered the applications, staff reports (both oral and written), the General Plan and zoning on the subject property, the Zoning Code codified at Chapter 37 of the Salinas Municipal Code, testimony, written comments, and all other materials presented at the public hearing and denied CUP 2022-048 (Salinas Planning Commission Resolution No. 2024-004); and WHEREAS, on April 12, 2024, CannaCruz appealed the Planning Commission’s denial of CUP 2022-048 and subsequently sent a revised appeal on April 17, 2024. On May 21, 2024, CannaCruz agreed to continue the appeal of the denial of CUP 2022-048 to June 18, 2024; and WHEREAS, on August 24, 2023, CannaCruz first submitted an application for a major amendment to Commercial Cannabis Permit 2023-007 (“CCP 2023-007”) to relocate an existing cannabis dispensary with accessory delivery and distribution from 1156 Abbott Street to 1228 South Main Street, which location is within 1,000 feet of sensitive uses defined in the Salinas Municipal Code. CannaCruz’s first application for a major amendment was determined to be incomplete and to require additional review by the City’s Cannabis Selection Committee; and WHEREAS, on April 29, 2024, CannaCruz submitted a revised application for a major amendment to CCP 2023-007, which application was, on May 7, 2024, determined by the City Attorney to be complete and subsequently forwarded to the Cannabis Selection Committee for review; and WHEREAS, on May 14, 2024, the Cannabis Selection Committee denied CCP 2023-007; and WHEREAS, on May 16, 2024, CannaCruz appealed the Selection Committee’s denial of CCP 2023-007 to the Salinas Planning Commission; and WHEREAS, on June 5, 2024, the Salinas Planning Commission held a duly-noticed public hearing at which all those wishing to be heard were allowed to speak or present written comments and other materials; and WHEREAS, following such public hearing the Salinas Planning Commission neither granted nor denied CannaCruz’s appeal and instead referred the appeal to the City Council for its consideration along with CUP 2022-048; and WHEREAS, the City Council held a duly-noticed public hearing on June 18, 2024, on the appeals of CannaCruz at which all those wishing to be heard were allowed to speak or present written comments and other materials; and WHEREAS, the City Council has considered the applications, staff reports (both oral and written), the General Plan and zoning on the subject property, the Commercial Cannabis Ordinance codified at Article VII of Chapter 5 of the Salinas Municipal Code, the Zoning Code codified at Chapter 37 of the Salinas Municipal Code, testimony, written comments, and all other materials presented at the public hearing; and WHEREAS, following the June 18, 2024, public hearing, the City Council directed City staff to prepare a resolution granting CannaCruz’s appeals consistent with the findings made by the City Council and to return such Resolution to the City Council for consideration and approval on June 25, 2024; and WHEREAS, the proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA) and the City Council finds and determines that the project qualifies for a Class 1 Categorical Exemption under CEQA Guidelines Section 15301 (Existing Facilities) in that the project is the use of an existing structure involving negligible expansion of use.
The City Council also finds and determines that the project qualifies for a Class 32 Categorical Exemption under CEQA Guidelines Section 15332 (In-Fill Development Projects) in that it is consistent with applicable General Plan Land Use Designation and Zoning District; is located on a site of less than five acres, within City limits, substantially surrounded by urban uses, with no value as habitat for endangered, rare, or threatened species; is adequately served by necessary utilities and public services; and the project has no foreseeable adverse impacts to traffic, noise, air quality, or water quality; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS, that the City Council hereby finds and determines that the above recitals are true and correct and are incorporated herein by this reference; and BE IT FURTHER RESOLVED that after consideration of the reports (written and oral), documents, testimony, and other materials presented, the City Council finds and determines that the appeal of CannaCruz, Inc. from the Planning Commission’s denial of Conditional Use Permit 2022-048 is hereby granted. The following findings are hereby adopted as the basis for this determination:
The location of the use (1228 South Main Street) is in accordance with the objectives of the Salinas General Plan, the Salinas Zoning Code, and the purposes of the district in which the site is located.
The proposed location is designated “Retail” by the 2002 Salinas General Plan pursuant to which locations designated as such provide for a variety of retail uses such as retail stores, restaurants, hotels, personal services, business services, and financial services. The proposed project is consistent with Salinas General Plan Goals and Policies. Located on an in-fill site, the proposed project would help maintain a compact City form, consistent with Land Use Policy LU 2.4.
As shown on the official Zoning Map, the location is in the Commercial Retail—South Main Street Focused Growth Overlay (CR-FG-3) Zoning District. Pursuant to Salinas Zoning Code section 37-30.190, the purpose of the Commercial Retail (CR) District is to provide opportunities for commercial uses that allow a wide range of retail stores, restaurants, hotels and motels, commercial recreation, personal services, business services, offices, financial services, mixed-use residential, and/or limited residential uses. Pursuant to Salinas Zoning Code Section 37-40.200, the purpose of the Focused Growth (FG) Overlay District is to create healthy neighborhood centers where residents of all economic and cultural backgrounds can live, work, walk, shop, exercise, and spend quality time outdoors, increase pedestrian activity by creating neighborhood centers that are conveniently accessed by public transit, provide a mixture of uses to keep the neighborhoods active at all times of the day, not just morning and evening (as in the case of residential zones) or business hours (for commercial zones), reduce vehicle trips and traffic by encouraging a mixture of uses and activities in one location, encourage creative architecture and public design that communicate a neighborhood’s locale, purpose, priorities, and personality to those who use the space, and create revitalized neighborhoods through infill development and redevelopment activities.
A Conditional Use Permit is required “for use classifications typically having unusual site development features or operating characteristics requiring special consideration so that they may be designed, located, and operated compatibly with uses on adjoining properties and in the surrounding area.” (Salinas Zoning Code Section 37-60.450) Pursuant to Salinas Zoning Code Section 37-50.370(b) a Conditional Use Permit is required for a parking reduction request of greater than 30%. CannaCruz proposed a 41-space (50%) parking reduction. CannaCruz presented to the City the “CannaCruz Salinas Parking Demand Study dated February 9, 2024,” (the “Parking Study”) which parking study supports a reduction in parking and loading spaces for uses which, by their nature, are not likely to be converted to another use with greater parking requirements. (Salinas Zoning Code Section 37-50.370(a)(4) Based on the Parking Study, the City Council finds and determines that a 51% parking reduction is appropriate.
The location of the conditional use and the proposed conditions under which it would be operated or maintained are consistent with the Salinas General Plan and will not be detrimental to the public health, safety, or welfare of persons residing or working in or adjacent to the neighborhood of such use, nor detrimental to properties or improvements in the vicinity or the general welfare of the City of Salinas.
The location is designated “Retail” by the 2002 Salinas General Plan pursuant to which locations designated as such provide for a variety of retail uses such as retail stores, restaurants, hotels, personal services, business services, and financial services. The proposed project is consistent with Salinas General Plan Goals and Policies. Located on an in-fill site, the proposed project would help maintain a compact City form, consistent with Land Use Policy LU 2.4. A Commercial Cannabis Business is considered a retail sales use. CannaCruz will pay all applicable traffic impact fees to mitigate its traffic impacts, if any, associated with the establishment of a Commercial Cannabis Business at the location of the use.
The conditional use will comply with the provisions of the Salinas Zoning Code, including any specific conditions required for the conditional use. Conditions will be included in CCP 2022-048 to ensure that, when implemented, the conditional use will conform with and comply with the provisions of the Salinas Municipal Code.
BE IT FURTHER RESOLVED that after consideration of the reports, documents, testimony, and other materials presented, the appeal of CannaCruz, Inc. from the Selection Committee’s denial of an application for a major amendment to Commercial Cannabis Permit 2023-007 to allow for a relocation from 1156 Abbott Street to 1228 South Main Street is hereby granted. The following findings are hereby adopted as the basis for this determination:
Notwithstanding that 1228 South Main Street is located within 1,000 feet of sensitive uses defined in Salinas Municipal Code Section 5-07.27, the intent of the commercial cannabis ordinance (Article VII of Salinas Municipal Code Chapter 5) would otherwise be met by CannaCruz’s relocation from 1156 Abbott Street to 1228 South Main Street:
Relocation would promote the development of businesses in the commercial cannabis industry in a responsible manner while imposing regulations to protect the health, safety, and welfare of the residents, neighborhoods, and businesses of Salinas.
Relocation would accommodate the needs of medically ill persons that require treatment with medicinal cannabis and medicinal cannabis products.
Relocation would be consistent with regulation of the personal non-medicinal use and consumption of cannabis and cannabis products in a manner consistent with state law.
Relocation would be consistent with the City’s regulation of cannabis activity in Salinas concurrently with state law.
Notwithstanding that 1228 South Main Street is immediately adjacent to a residential use, approving the major amendment to CCP 2023-007 would not cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential units.
CannaCruz has been in continuous operation in Salinas at 1156 Abbott Street for the past five (5) years and the past ten (10) years in the local region. CannaCruz has demonstrated a willingness to cooperate with the City and neighboring properties to address concerns. Both CCP 2022-048 and CCP 2023-007 are subject to review on an as-needed basis, with CCP 2023-007 subject to annual review and renewal based on compliance with all applicable laws, regulations, and conditions. CannaCruz will implement a comprehensive security plan with proactive action plans to prevent loitering and to prevent on-site usage of cannabis and cannabis products including security patrol in the parking lot of the location. CannaCruz will cooperate with neighboring businesses and the adjacent residential complex to mitigate potential impacts including the installation of fencing and the installation of traffic safety improvements including speed humps, signage, and lane delineations to mitigate potential harm to pedestrians and bicyclists, as well as motorists.
CannaCruz will be required to comply with all state and local regulations regarding the operation of a commercial cannabis business, including the obligation to hold and maintain all required state and local licenses and permits (Salinas Municipal Code Section 5-07.18).
As required by Salinas Municipal Code Section 5-07.24, CannaCruz has provided a security plan. CannaCruz has indicated it will provide four (4) uniformed security guards on site each day, video of the location will be accessible by the Salinas Police Department in real-time with all surveillance recordings retained for ninety (90) days, 24-hour live security monitoring will be accessible to law enforcement, and physical security measures (including locks, sensors, panic buttons, and alarms) will be installed. All cannabis/cannabis products/cannabis product waste and associated water will be stored in a manner that prevents diversion, theft, loss, hazards, and nuisance. Minors will be prohibited from being on or near the location. All products will be packaged in child-resistant packaging consistent with state law; all products will be identified in the track and trace system, through which all sales are tracked. No cannabis or cannabis products will be consumed at the location. No smoking will be permitted on or near the location and no individuals who are suspected of being under the influence. No loitering will be permitted at the location. All policies and security measures will be enforced by on-site security and management.
No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of the property and no outdoor storage of cannabis or cannabis products is permitted at any time.
CannaCruz has incorporated odor control devices to ensure that odors from cannabis are not detectable off-site outside of the facility.
BE IT FURTHER RESOLVED that the Salinas City Council approves Conditional Use Permit 2022-048 and a major amendment to Commercial Cannabis Permit 2023-007 to allow for the relocation of CannaCruz from 1156 Abbott Street to 1228 South Main Street. Drafts of CUP 2022-048 and CCP 2023-007 are attached to this resolution and City staff is hereby directed to revise such drafts consistent with the Salinas Municipal Code, other applicable laws, rules, and regulations and the City Council’s findings, determinations, and conditions as set forth in this Resolution.
BE IT FURTHER RESOLVED that the City Council finds and determines that it would not have granted CannaCruz’s appeals but for the applicability and the validity of each and every one of the above findings and conditions which shall be incorporated into CUP 2022-048 and CCP 2023-007 and that if any one or more of the above said findings and conditions are invalid, the appeals would not have been granted without requiring other valid conditions for achieving the purposes and intent of such approvals.
PASSED AND APPROVED this 25th day of June, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
____________________________________
Kimbley Craig, Mayor
ATTEST:
_____________________________________
Patricia M. Barajas, City Clerk
1 1