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CONTINUED PUBLIC HEARING - COMMISSION USE PERMIT TO ESTABLISH A RETAIL STOREFRONT CANNABIS BUSINESS AND AN ADMINISTRATIVE USE PERMIT TO ESTABLISH A RETAIL NON-STOREFRONT (DELIVERY ONLY) CANNABIS BUSINESS - ALL CONCERNING A 6,500 SQUARE FOOT COMMERCIAL SPACE AT 7616 PACIFIC AVENUE, UNIT A5 (APPLICATION NO. P20-0693)
recommended action
RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution:
1. Approving a Commission Use Permit to allow the establishment of a proposed retailer storefront cannabis business, in accordance with the findings and subject to the conditions found in the Proposed Resolution; and
2. Approving an Administrative Use Permit to allow a retail non-storefront (delivery only) cannabis business, in accordance with the findings and subject to the conditions found in the Proposed Resolution.
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SUMMARY
The applicant, Heng Heung, submitted a Commission Use Permit (CUP) and Administrative Use Permit (AUP) application to establish a 6,500-square foot retailer storefront cannabis business and a retail non-storefront (delivery only) cannabis business in a Commercial General (CG) zoned parcel, located at 7616 Pacific Avenue, Unit A5. The site is currently a multi-tenant commercial building within the Hammer Ranch Shopping Center. The shopping center includes restaurants, a supermarket, a US Postal Service location, and various retail stores, including an existing, previously approved cannabis retail storefront (Attachment A - Location Map).
This applicant participated in the 2020 Commercial Cannabis Lottery program and was awarded the opportunity to apply for a Retailer Storefront CUP as an equity pool applicant. The Non-storefront Retail (delivery only) use applicability is not granted through the Commercial Cannabis Lottery program. There are no caps on the number of permits for either use, however the Retailer Storefront use is required to participate in and be awarded through the Commercial Cannabis Lottery program. The Stockton Police Department has reviewed the application and indicates no opposition to this proposed project.
Staff recommends approval as the proposed project meets the City’s standards and aligns with the General Plan 2040 goals:
• (Goal LU-6) to provide for orderly, well-planned, and balanced development;
• (Goal LU-4) attract and retain companies that offer high-quality jobs with wages that are competitive with the region and state; and
• (Policy LU-6.2) provide opportunities for growth and expansion, particularly in infill developments.
The project complies with all applicable provisions of the Development Code and the Municipal Code, including location requirements (Stockton Municipal Code Section 16.80.195A(6) and B(4)) which requires seperation from sensitive uses (i.e. residential zones, parks, schools, etc.).
DISCUSSION
Background
On March 5, 2019, City Council approved changes to the City’s cannabis regulatory program to: (a) align state/local regulation; (b) allow additional business types; (c) establish a method to control the pace of new business openings; and (d) establish a method to address historic racial inequities.
New business types were introduced, including manufacturing, distribution, testing laboratories, delivery-only non-storefront retailers, and microbusinesses. The program also included additional cultivators and storefront retailers (dispensaries) as well as an equity program to address historic racial inequities. The changes were to align local regulation with the Medical Cannabis Regulation and Safety Act and the Adult-Use of Marijuana Act of 2016 (Proposition 64). In addition to achieving regulatory consistency, the program was changed to eliminate the limit (i.e. caps) on the total number of Operator Permits regulated by the Stockton Police Department under Stockton Municipal Code (SMC) Chapter 5.100.
For certain permit types (storefront retailer, cultivation, volatile-manufacturing, and microbusinesses) where there is concern about the potential impact on public safety, public health, or community character, a controlled expansion was established. A controlled expansion program allows the City and the existing industry to adapt to an evolving industry and gives the City ongoing flexibility to accelerate or decelerate industry expansion over time. The controlled expansion also has the benefit of allowing the City to give preference to equity applicants.
The controlled expansion is accomplished on an annual basis through a lottery process for the following business types:
a. storefront retailer
b. cultivation
c. volatile-manufacturing
d. microbusinesses, which include storefront retail and/or cultivation business types
Applicants for the above business types are evenly selected by the lottery process from two pools for a total of eight (8) applications per year, as described below:
Equity Pool
a. One (1) storefront retailer permit
b. One (1) cultivation permit
c. One (1) volatile-manufacturing permit
d. One (1) microbusiness permit
General Pool
a. One (1) storefront retailer permit
b. One (1) cultivation permit
c. One (1) volatile-manufacturing permit
d. One (1) microbusiness permit
The lottery includes an equity component (i.e. Equity Pool) to enable Stockton residents from disadvantaged neighborhoods to obtain cannabis business permits. Applicants for the above business types are evenly selected from 1) a general pool of applicants, and 2) an equity pool of applicants. Equity pool applicants must meet certain criteria and are also eligible to be a part of the general pool. To qualify as an equity applicant, an applicant must own more than 50 percent of the business, be a resident of Stockton, and meet one of the following: be an Minority Business Enterprise (MBE)/Women Owned Business Enterprise (WBE), live in an opportunity zone, live in the Senate Bill 535 disadvantaged area, or live in a Housing and Urban Department (HUD) designated area.
Heng Heung, the applicant of the proposed project, is a successful equity pool applicant for a storefront retailer business. The Non-storefront Retail (delivery only) use applicability is not granted through the Commercial Cannabis Lottery program. There are no limits or “caps” to the number of applications that may be approved.
This item was originally scheduled for the May 13, 2021 Planning Commission meeting and the applicant requested that the item be continued. The Planning Commission approved the continuance of this item to July 8, 2021 meeting through the approval of motion 2021-05-12-0501.
Present Situation
The applicant, Heng Heung, requests approval to operate a 6,500-square foot retailer storefront and non-storefront retail (delivery only) commercial cannabis business in a Commercial, General (CG) Zone located at 7616 Pacific Avenue, Unit A5.
The proposed project is located in the Hammer Ranch Shopping center. The shopping center includes restaurants, a supermarket, a US Postal Service location, and various retail stores, including an existing, previously approved cannabis retail storefront.
The retailer storefront and the non-storefront retail (delivery only) businesses will operate between 8:00 a.m. and 8:00 p.m. Monday through Sunday. The proposed project will employ 12-15 full-time employees within the first year.
The Stockton Police Department has reviewed the application and indicates no opposition to this proposed project. If approved, a formal security plan and lighting plan will be submitted and reviewed by the Police Department as part of an Operators Permit application.
The existing commercial center has 33 shared parking spaces of which 15 spaces are required for the proposed project. The number of parking stalls is consistent with the requirements for proposed cannabis businesses and, therefore, is adequate to service the business.
Staff Analysis
To permit the proposed uses, the Planning Commission is asked to consider approval of a Commission Use Permit and an Administrative Use Permit. Each request and staff’s analysis are provided below.
Commission Use Permit/Administrative Use Permit
When located in a CG Zone, a Commission Use Permit is required for a Cannabis Retailer Storefront and an Administrative Use Permit is required for a Non-storefront cannabis retail (delivery only). The operations of each use would be combined within a single business and within the same building area. As a result, and since the findings required to address each permit type are the same, the following analysis addresses both land uses.
SMC section 16.168.050(A) requires seven findings of fact to grant approval. Each finding and staff’s analysis are as follows:
1. Finding: The proposed use is allowed within the subject zoning district with the approval of a use permit and complies with all other applicable provisions of this Development Code and the Municipal Code.
Staff Analysis: The proposed cannabis business types (i.e., uses) are both allowed in the CG Zone. The subject uses would be located within an existing commercial building and, therefore, do not raise a question of conformance with Title 16 development standards. As noted below, adequate off-street parking spaces are provided for both the existing and proposed uses.
The proposed project is subject to location requirements set forth in SMC 16.80.195.A(6) and 16.80.195.B(4). The project meets the location requirements. The project is not located within 300-feet of any existing residential zone. The project is not located within 600-feet of any park, school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, childcare center, child care, in-home (family day care home), religious facilities, or drug abuse or alcohol recovery/treatment facility.
2. Finding: The proposed use would maintain or strengthen the integrity and character of the neighborhood and zoning district in which it is to be located.
Staff Analysis: The proposed cananbis business would be situated in a shopping center with several other commercial land uses. It would be aligned with the intent of the shopping center to provide retail options to the community. It would fill a vacant unoccupied suite which would help strengthen the integrity of the surrounding area by providing added security due to the nature of the land-use.
3. Finding: The proposed use would be consistent with the general land uses, objectives, policies, and programs of the General Plan and any applicable specific plan or master development plan.
Staff Analysis: The General Plan Land Use Map designates the subject site as Commercial. The Commercial designation is intended to accommodate a wide variety of commercial uses, including, but not limited to, service uses. SMC Section 16.20.020 Table 2-2 classifies the Cannabis Retailer Storefront and the Non-storefront Cannabis Retail Operator Permit (Delivery Only) use within a service use category. Therefore, the proposed use is consistent with the Commercial designation.
Additionally, the project is consistent with General Plan Policy LU-4.2 which states, “Attract employment- and tax-generating businesses that support the economic diversity of the city.” The proposed use furthers this policy since it would provide for a business type that generates tax revenue for the City of Stockton’s general fund.
4. Finding: The subject site would be physically suitable for the type and density/intensity of use being proposed including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g., earth movement, flooding, etc.).
Staff Analysis: The proposed project would occupy a portion of an existing commercial building within a shopping center. The project has been analyzed by all departments and it has been determined all streets and public access ways are adequate to serve the proposed project. Further, The proposed project was reviewed for compliance with all applicable and current Building Code guidelines and found to be in complance given the nature of the proposed project. No exapansion of the building is proposed. The site will have access to City utility services.
5. Finding: The establishment, maintenance, or operation of the proposed use at the location proposed and for the time period(s) identified, if applicable, would not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, peace, or general welfare of persons residing or working in the neighborhood of the proposed use.
Staff Analysis: The proposed land-use will require the applicant to adhere to all applicable building code, fire code, and requirements established by the State of California, Bureau of Cannabis Control (BCC). The BCC issues annual licenses and monitors Retailer Storefronts and Non-Storefront Retail (delivery only) to ensure safety of business practices. The applicant will also be required to obtain and maintain a City of Stockton, Operator’s Permit that requires the business owner to develop and maintain a security and lighting plan that is reviewed annually by the City of Stockton, Police Department.
The operations are being carried out indoors, in a commercial zone; appropriate security provisions will be incorporated into the project operations plan, including both electronic surveillance and on-site security personnel procedures.
For the above reasons, the establishment, maintenance, or operation of the proposed land use activity would not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use.
6. Finding: The design, location, size, and operating characteristics of the proposed use would be compatible with the existing and future land uses on-site and in the vicinity of the subject property.
Staff Analysis: The proposed Retailer Storefront and Non-Storefront Retail (delivery only) is located in an existing commercial building and no changes have been proposed to the exterior characteristics of the project site. The proposed use is commercial in nature and modest floor area raises no potential issues related to compatibility with the existing and future land uses on-site and in the vicinity of the subject property.
7. Finding: The proposed action would be in compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s CEQA Guidelines.
Staff Analysis: The proposed uses would occur within a portion of an existing commercial building. Thefore, the project is categorically exempt from the CEQA, pursuant to CEQA Guidelines section 15301 (Existing Facilities). A categorical Exemption under section 15301, Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.
As a point of reference, Staff has provided a location map of currently approved Retailer Storefront businesses, and Non-storefront Retail (delivery only) commercial cannabis businesses as an attachment to this report (Attachment B - Existing Retailer Storefront and Non-storefront Retail (delivery only) Businesses). However, the distance between cannabis businesses is not regulated by the SMC. Therefore, the proposed Retailer Storefront and Non-Storefront Businesses are permitted to be in the same shopping center as the existing, previously approved cannabis business.
PUBLIC COMMENT
Notice for this item was published in the Record on May 3, 2021, and a notice has been sent to all property owners within a 300-foot radius of 7616 Pacific Avenue on May 3, 2021. Staff received thirty-four (34) communications regarding this project. All communications received were in opposition of the project at the proposed location. The communications received prior to the posting of this staff report have been provided in Attachment C.
Although not required by the Stockton Municipal Code, a virtual community meeting was held on May 10, 2021 at 4:30 pm. All property owners within a 300-foot radius of the subject property were invited to the meeting. Meeting attendance statistics will be presented during the public hearing. The applicant recorded the presentation and made it available to community members by request.
Attachment A - Location Map
Attachment B - Existing Retailer Storefront and Non-storefront Retail (delivery only) Businesses
Attachment C - Public Communications
This report was prepared in part by Stephanie Ocasio, Assistant Community Development Director, (209) 937-8544; stephanie.ocasio@stocktonca.gov.