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  8.A.       
Meeting Date: 06/15/2021  
From: Dan Symer, Zoning Code Manager

TITLE:
Consideration and Adoption of Resolution No. 2021-26 and Ordinance No. 2021-13: A Resolution of the City Council of the City of Flagstaff, Coconino County, Arizona, declaring as a public record that certain document filed with the City Clerk and entitled "Case No. PZ-21-00056 Zoning Code Text Amendment - 2021: Marijuana Uses;" and, an Ordinance of the City Council of the City of Flagstaff, Coconino County, Arizona, amending the Flagstaff City Code, Title 10, Flagstaff Zoning Code, to modify the existing Zoning Code provisions to accommodate medical and recreational marijuana and the associated land uses.
STAFF RECOMMENDED ACTION:
1) Adopt Resolution No. 2021-26
2) Read Ordinance No. 2021-13 by title only for the final time
3) City Clerk reads Ordinance No. 2021-13 by title only (if approved above)
4) Adopt Ordinance No. 2021-13
Executive Summary:
The proposed amendment (Exhibit A to the Resolution No. 2021-26) modifies the existing marijuana use provisions of the Zoning Code to address Proposition 207 – Smart and Safe Arizona Act (the “Act”) that the Arizona voters approved in November 2020 to allow recreational use of marijuana. Furthermore, the amendment is to implement the City Council’s January 12, 2021, and March 2, 2021, direction to allow dual license (medical and recreational) dispensaries and the testing, cultivation, and manufacturing of marijuana products.

The Planning and Zoning Commission reviewed and provided a recommendation of approval at the May 12, 2021, Planning and Zoning Commission meeting.
Financial Impact:
There are no anticipated financial impacts affiliated with the proposed Zoning Code Text Amendment.
Policy Impact:
City Council Goal: Grow and strengthen a more equitable and resilient economy.
  • The proposed Zoning Code Text Amendment is intended to address the Proposition 207 – Smart and Safe Arizona Act (recreational use of marijuana) that was approved by the Arizona voters in November 2020, and allow the recreational sales, testing, manufacturing, and storage of marijuana and marijuana products within the City.  This amendment will allow and assist in providing for a more diverse and resilient business environment.
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
  • Ensure the built environment is safe through the use of consistent standards, rules & regulations, & land use practices.
  • Maintain & enhance an equitable & effective business recruitment, retention, & expansion program throughout the community
Regional Plan
Staff's analysis of the Regional Plan's goals and policies is included below under the Zoning Code Text Amendment Criteria heading, Finding #1 of the report.  In addition, the staff's narrative and Regional Plan analysis are included as Attachment 1.
Has There Been Previous Council Decision on This:
There has not been a previous City Council decision on this ordinance.

Options and Alternatives:
The City Council may choose to adopt, modify, or deny the amendment.

Proposed Amendment:
The proposed amendment (Exhibit A to the Resolution No. 2021-26) modifies the existing marijuana use provisions of the Zoning Code to address Proposition 207 – Smart and Safe Arizona Act (the “Act”) that the Arizona voters approved in November 2020 to allow recreational use of marijuana.  Furthermore, the amendment is to implement the City Council’s January 12, 2021, and March 2, 2021, direction to allow dual license (medical and recreational) dispensaries and the testing, cultivation, and manufacturing of marijuana products.  To accommodate both the medical marijuana and the associated uses, which is also referred to as Marijuana Establishments, the proposed revisions to the Zoning Code incorporate the following modifications:
  • The Medical Marijuana Dispensary land use has been revised to be called Marijuana Dispensary. In addition, the associated definition has been modified to accommodate both medical and dual license (medical or recreational) sales.  Furthermore, the definition incorporates the associated accessory uses (cultivation, manufacturing, processing, packaging, or storage of marijuana products) to be consistent with the Arizona Revised Statutes (ARS) pertaining to a dispensary's allowed operation characteristics under ARS.
  • A new land use, Marijuana Testing Facility, and its associated definition have been added.  This land use is a laboratory that tests marijuana and marijuana products for potency and impurities.  The Marijuana Testing Facility is proposed to be allowed in the Suburban Commercial (SC), Community Commercial (CC), Highway Commercial (HC), Commercial Service (CS), Research and Development (RD), Light Industrial (LI), and Light Industrial – Open (LI-O) zones as an allowed use.
  • Medical Marijuana Off-Site Cultivation Location is proposed to be revised to Marijuana Off-Site Cultivation Location.  In addition, the existing definition is proposed to be deleted, and a new definition is proposed to be added that conforms with the Act and the existing ARS provisions for medical marijuana. The Marijuana Off-Site Cultivation Location land use allows for the cultivation, manufacturing, packaging, processing, and storage of marijuana and marijuana products, but it excludes the sale or transfer of marijuana and marijuana products to consumers.  The Marijuana Off-Site Cultivation Location use is proposed to be maintained as an allowed use in the Light Industrial (LI), Light Industrial – Open (LI-O), Heavy Industrial (HI), and Heavy Industrial – Open (HI-O) zones.
  • A new land use, Marijuana Off-Site Manufacturing Location, and its associated definition have been added. The proposed definition of this land use allows for the manufacturing, packaging, processing, and storage of marijuana and marijuana products, excluding the sale or transfer of marijuana and marijuana products to consumers. The Marijuana Off-site Manufacturing Location land use is proposed to be allowed in the Light Industrial (LI), Light Industrial – Open (LI-O), Heavy Industrial (HI), and Heavy Industrial – Open (HI-O) zones.
  • The term and definition of Marijuana Establishment have been added to maintain consistency with the Act.  A Marijuana Establishment is any of the following: Marijuana Dispensary, Marijuana Off-Site Cultivation Location, Marijuana Off-site Manufacturing Location, or Marijuana Testing Facility.
  • The existing provisions have been modified to include a Concept Plan Review prior to the submittal of a Building Permit or Business License application or prior to a structure's occupancy for a Marijuana Establishment.  
In addition to the above modifications, several of the existing provisions are proposed to be deleted since they are regulated and verified by the Arizona Department of Health Services as part of the department’s review and certification of Marijuana Establishments and marijuana facility agents. Also, the provisions have been updated, requiring a dimensioned plan drawn by a surveyor and an affidavit signed by the applicant attesting that the lot or parcel proposed to contain the Marijuana Establishment meets the separation requirements specified in subsection F. of Section 10-40.60.220 (Exhibit A to the Resolution No. 2021-###). Furthermore, several provisions have been modified for simplification purposes.

Zoning Code Text Amendment Criteria:
A Zoning Code Text Amendment shall be evaluated based on the following findings:

A.    Finding #1:
The proposed amendment is consistent with and conforms to the objectives and policies of the General Plan and any applicable specific plan;


The amendment's primary purpose is to implement the City Council’s direction to update the Zoning Code to conform with the Act and to maintain consistency and conformance with the Regional Plan's (General Plan) goals and policies.  Therefore, the modifications would allow for Marijuana Establishments to cultivate, manufacture, sell, and store marijuana products. The proposed provisions address multiple goals and policies of the Regional Plan. Staff’s narrative and comprehensive Regional Plan Conformance Analysis are included as Attachment #1.  A summary of the goals and policies that the proposed Zoning Code Text Amendment is consistent and conforms with include:
  • Providing submittal and locational requirements that are transparent and minimize duplication with the State of Arizona’s requirements to be a certified Marijuana Establishment that is allowed to cultivate, manufacture, sell, and store marijuana products (Regional Plan Goal ED.1.);
  • Allowing the Marijuana Establishment land uses (Marijuana Dispensary, Marijuana Off-Site Cultivation Location, Marijuana Off-site Manufacturing Location, and Marijuana Testing Facility) in several commercial and industrial zones that will permit new and existing marijuana-based businesses to be retained, expanded, and located in Flagstaff, as well as providing for scientific testing of marijuana products (Regional Plan Goal ED.3., and Policies CC.5.1., CC.5.5., ED.3.1., ED.3.5., and ED.4.2.); and,
  • Allowing Marijuana Establishments to group related operations (cultivation, manufacturing, sales, and storage of marijuana products) in commercial and industrial zones in a manner that will permit urban agriculture, the utilization of existing transportation facilities, and provide leasing and development opportunities of commercial and industrial property (Policies ED.3.5., ED.4.2, LU.3.5., and LU.15.1.).
B.    Finding #2
The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
The provisions of the amendment are not anticipated to be detrimental to the public interest, health, safety, convenience, or welfare of the city.  To assist in ensuring that the proposed Marijuana Establishment land uses are not detrimental, minimum separation requirements are established from facilities and locations that contain any of the following uses: daycares, educational, family recreation and entertainment, public libraries and parks, drug or alcohol rehabilitation, and other Marijuana Establishments.  In addition, provisions have been incorporated pertaining to the security, disposal of marijuana remnants and by-products, and prohibition of onsite consumption of marijuana products and emissions of dust, fumes, vapors, smoke, or odors into the environment from a Marijuana Establishment

C.    Finding #3
The proposed amendment is internally consistent with other applicable provisions of this Zoning Code.
The amendment is internally consistent, utilizes the existing format, and does not conflict with other Zoning Code provisions. It maintains the Zoning Code’s purpose as a comprehensive contemporary set of land uses and requirements that are straightforward, usable, and easily understood.

Citizen Participation:
Persons of interest on file with the Planning and Development Services section of the Community Development Division were notified of the Planning and Zoning Commission and City Council work sessions and public hearing via first-class mail. Moreover, notification of the work sessions and public hearings were published on the City’s Facebook and Flagstaff Community Forum web pages and in the Arizona Daily Sun.  As of the date of this report, staff has not had any public comments on the proposed Zoning Code Text Amendment.

Planning and Zoning Commission Work Session:
At the Planning and Zoning Commission Work Session of April 14, 2021, staff reviewed the text amendment application with the Commission.  The Commission had a general question regarding the odor regulations to clarify their understanding of the proposed Zoning Code Text Amendment.  The existing regulations and proposed Zoning Code Text Amendment maintenance the prohibition of the emittance of odor from a Marijuana Establishment.

The Planning and Zoning Commission reviewed and provided a recommendation of approval at the May 12, 2021, Planning and Zoning Commission meeting.

City Council Work Session:
At the City Council Work Sessions of January 12, 2021, and March 2, 2021, the City Council provided direction to staff to modify the existing medical marijuana Zoning Code provisions to accommodate the Act’s associated uses. In addition, the City Council’s direction included limiting the sales of marijuana to entities that are certified by the State of Arizona to operate as dual licensees (medical and recreational).  The direction also included utilizing the applicable medical marijuana Zoning Code criteria for all marijuana uses that the Act addresses.
Attachments
Res. 2021-26
Exhibit A to the Resolution No. 2021-26
Ord. 2021-13
1. Application Narrative and Regional Plan Analysis
Staff Presentation


    

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