Title:
Title
Call Up for City Council Review per City Code Section 17.228.900.J and 17.228.920.G for Dragon’s Lair Enterprises (P17-075) Related to Cannabis Production and Delivery (Noticed 11/09/2018) [Continued from 11/20/2018 & 12/11/2018]
End
FileID
File ID: 2018-01550
Location
Location: 1750 Iris Avenue, District 2; APN: 266-0241-004-0000
Recommendation:
Recommendation
Conduct a Public Hearing and upon conclusion, adopt: 1) a Resolution adopting the Environmental Exemption (Per CEQA Guidelines Section 15301 - Existing Facilities); and 2) a Resolution adopting findings of fact and conditions approving the Dragon’s Lair Enterprises project for a Conditional Use Permit for cannabis production, a Conditional Use Permit for non-storefront, delivery only of cannabis all within an existing 29,924 square foot warehouse building, and Site Plan and Design Review for minor site improvements on approximately 1.37 acres in the Light Industrial (M-1) zone.
Contact: Garrett Norman, Associate Planner, (916) 808-7934; Teresa Haenggi, Senior Planner, (916) 808-7554, Community Development Department
Body
Presenter: Garrett Norman, Associate Planner, Community Development Department
Attachments:
01-Description/Analysis
02-Background
03-Resoltuion Adopting Environmental Exemption
04-Resoltuon Approving Project Entitlements
05-Exhibit A - Site Plan
06-Exhibit B - Floor Plans
07-Neighborhood Context Map
08-Site Photos
09-Applicant’s Supplemental Project Narrative
10-Council Call Up Letter
11-Community Comments
Description/Analysis
Issue Detail: This project was approved by the City Planning and Design Commission on August 30, 2018. Councilmember Warren of District 2 called up the item for City Council review, authorized by Sacramento City Code Section 17.228.900.J/17.228.920.G. The reasons requesting the call up are based on security concerns with six individual suites/operators for delivery only dispensaries, the regulatory compliance challenges that may arise with the large number of independent operators, and not having District 2’s appointed Commissioner at the Planning and Design Commission hearing. A copy of the letter is included in Attachment 10. Staff has reviewed these concerns and provide the following response:
• Each individual operator will be required to obtain their own Business Operating Permit (BOP) in which annual reporting and relicensing will be required.
• The applicant has agreed to all the conditions of approval, including several security conditions, such as a security alarm system for each business operator including 24-hour video assessment and surveillance system (VASS) recording, dispersing of loiterers, the daily removal of litter, and providing exterior lighting.
• The Planning and Design Commissioners exercised discretion no differently than any other cannabis project, in the absence of Commissioner Farrell.
The project description has not changed from the Planning and Design Commission approval: The applicant is requesting land use entitlements to establish cannabis manufacturing, cultivation, distribution, and non-storefront delivery-only within the existing 29,924 square foot warehouse building located at 1750 Iris Avenue. The non-storefront cannabis delivery use will be for adult-recreational and medical uses. This project required discretionary review by the Planning and Design Commission because the delivery-only cannabis use is located within 300-feet of a residential zoned parcel (SCC Section 17.228.920.D.4).
There is an existing auto repair business located in a single suite that is approximately 6,912 square feet in size. The remaining portions of the building will be occupied with the requested cannabis uses and will be partitioned into the following:
• Cultivation (1 suite): 5,600 square feet
• Manufacturing (1 suite): 1,200 square feet
• Packaging (1 suite): 400 square feet
• Distribution (1 suite): 4,000 square feet
• Delivery-Only (6 separate suites): 10,396 square feet
Public/Neighborhood Outreach and Comments: As part of the application review process, the proposal was routed to Walk Sacramento, Sacramento Area Bicycle Advocates, Preservation Sacramento, the Hagginwood Community Association, the Ben Ali Community Association, and the North Sacramento Chamber of Commerce. In addition to the initial routing, staff also mailed an early notice to property owners within 300-feet of the subject site. The applicant also conducted outreach to the North Sacramento Chamber of Commerce and neighboring businesses and hosted a neighborhood BBQ event on Memorial Day. A detailed summary of outreach efforts, provided by the applicant, including images showing site cleanup, is included in Attachment 9.
Staff received opposition from the Ben Ali Community Association, a resident of the Ben Ali Community, and two property owners near the project site. The emails state that the cannabis use will exacerbate the cleanup efforts made in the neighborhood to become a more family friendly and safe environment. Staff also received a letter of support from the North Sacramento Chamber of Commerce citing the opportunity to receive investment in local neighborhood vitality through the Neighborhood Responsibility Plan and Community Relation Plan. Comment letters are provided in Attachment 11.
Staff finds the proposed use will not impact the surrounding community because it will not intensify the existing industrial operations in the building and within the vicinity. Currently there is a vehicle repair business operating within the building that sees several cars parked on site and associated noise with car repair. Additionally, the applicant will provide substantial measures to help improve the security in the area by providing new fencing, lighting, video surveillance, and security guards.
Policy Considerations: The General Plan designation for the subject site is Employment Center Low Rise. Policies within this designation promote the city’s position as a major regional and interstate employment center through continuation of existing operations, promotion of new industries, and improvements in job accessibility. Furthermore, these areas provide for the continued growth of the city’s existing employment centers and encourage the reuse of underutilized, vacant, or obsolete industrial buildings. The proposed project helps achieve this vision because it promotes a new industry in an existing, underutilized industrial building in an older industrial area of North Sacramento. Furthermore, industrial or manufacturing that occurs entirely within an enclosed building is an allowed use in the Employment Center Low Rise designation. In addition to the project’s consistency with the General Plan designation, the following Goals and Policies from the Land Use and Urban Design Element of the 2035 General Plan support the project:
Goal LU 7.2: Industrial Development. Maintain industrial districts that provide for the manufacturing of goods, flex space, and research and development that are attractive, compatible with adjoining nonindustrial uses, and well-maintained.
• Policy LU 7.2.1: Industrial Growth. The City shall encourage the protection, continued intensification, and expansion of existing industrial, warehousing, and distribution facilities and provide for new warehousing/distribution activities in select locations when found to be compatible with existing surrounding neighborhoods, to provide a range of employment opportunities for Sacramento’s residents.
The proposed project will provide for the continuation of industrial, warehousing, manufacturing, and distribution activities by occupying an existing warehouse building, providing employment opportunities. The project will not create any new impacts to the surrounding neighborhood in that the use will not result in an increase in traffic, noise, or odor in relation to other industrial uses that would be allowed by right to occupy the site, including, but not limited to vehicle or heavy truck service and repair, towing service and storage yard, and manufacturing service and repair.
• Policy LU 7.2.6: Industrial Development Design. The City shall require that new and renovated industrial properties and structures incorporate high-quality design and maintenance.
• Policy LU 7.2.7: Property Maintenance. The City shall encourage and, where legally permissible, require owners of visually unattractive or poorly maintained industrial properties to upgrade existing structures and properties to improve their visual quality.
The project is consistent with the two policies above because it will greatly improve the appearance of the property by cleaning up rubble stored on the site, construct new wrought-iron fencing around the building, and rehab the exterior of the building with paint and necessary repairs. Additionally, establishing a new use in the building with multiple tenants helps encourage continual upkeep of the premises.
Economic Impacts: None.
Environmental Considerations: The Community Development Department, Environmental Planning Services Division has reviewed this project and determined it to be exempt from the provisions of the California Environmental Quality Act (CEQA) under Class 1, Section 15301 (Existing Facilities). This project qualifies for this exemption because it consists of the operation, repair, maintenance, permitting, leasing, licensing, and minor alteration of an existing private warehouse structure that involves a negligible expansion of use beyond the existing industrial use at the time of the lead agency’s determination.
200-Year Flood Protection: State Law (SB 5) and Planning and Development Code Chapter 17.810 require that the City must make specific findings prior to approving certain entitlements for projects within a flood hazard zone. The purpose is to ensure that new development will have protection from a 200-year flood event or will achieve that protection by 2025. The project site is within a flood hazard zone and is an area covered by SAFCA’s improvements to the State Plan of Flood Control System, and specific findings related to the level of protection have been incorporated as part of this project. Even though the project site is within a flood hazard zone, the local flood management agency, SAFCA, has made adequate progress on the construction of a flood protection system that will ensure protection from a 200-year flood event or will achieve that protection by 2025. This is based on the SAFCA Urban level of flood protection plan, adequate progress baseline report, and adequate progress toward an urban level of flood protection engineer’s report that were accepted by City Council Resolution No. 2016-0226 on June 21, 2016 and the SAFCA 2017 Adequate Progress Annual Report accepted by City Council Resolution No. 2017-0418 on November 7, 2017.
Sustainability: None.
Commission/Committee Action: At the public hearing on August 30, 2018, and after hearing public testimony, the City Planning and Design Commission passed a motion to approve the subject project.
Rationale for Recommendation: Staff recommends the Commission approve the requested entitlements based on the findings and subject to the conditions listed in Attachment 4. The proposal complies with the goals and policies of the 2035 General Plan in that it occupies an existing, underutilized industrial building with an employment generating use. Furthermore, the project has been conditioned to ensure a safe and productive operation of the property that will not be a nuisance to the neighboring community.
Financial Considerations: None.
Local Business Enterprise (LBE): None.