Commercial Cannabis Study Session #2 Sonoma City Council

April 15, 2019

Presentationby:JeffWalter/DavidStorer-CityStaffTimCromartie–HdLCompanies

1

City Council direction – March 4, 2019

•  Retailers:“Storefront”and“Non-storefront”–allowoneofeach(2)• Manufacturing:Type“N”forinfusionsandType“P”forlabeling&packaging–allowoneofeither•  Testinglaboratory:allowone•  Allowfordistribution–“Transportonly”– (Type13)forretailers•  Allowdeliveriestoresidentslivingwithinthecitybycannabisbusinesseslocatedinthecityandbyoutoftownoperatorsdeliveringtoresidentswithinthecity(medicinalandnon-medicinal)•  Zoningdistricts:“storefront”inCommercial(C)zoneonly;allotherpermitsinCommercial(C)andMixedUse(MX)zones)–“Non-storefront”,TestingLaboratoryandManufacturing

2

Prohibited business types:

•  “Cultivation”

•  “Distributors”

•  “Micro-businesses”

•  newManufacturingType“S”permit?-“Sharedfacilities”(inconjunctionwith“ManufacturingTypeN”permits–only)

3

Plaza Retail Overlay District

(PROD)

4

600 Foot Buffer

Sonoma Valley High School (9-12)

Adele Harrison Middle School (6-8)

Prestwood Elementary School

(PreK, K-5)

5

Estimated 600 Foot Buffer

removing Safeway, Sonoma Market and

Whole Foods Shopping Centers

Sassarini Elementary School (K-5)

St. Francis

Solano School (K-8)

Soloquest Learning Center (6-12)

6

600 Foot Buffer

Sonoma Little League

7

Three phase permitting process:

(CC)

(CUP/UP)

(CCBP)

8

PROCESS -- Commercial Cannabis Business Permit (CCBP) SELECTIONPROCESS(4+months;startingAugust–)

MarketingRequestforApplications

ProposalReviewCommittee-PRC

QualifiedFinalists

QualifiedFinalistsPresenttoCity

Council

CityCouncilSelects;Awards

ConditionalCertificate

SelectedApplicantsApplyforLandUse

Entitlements

PlanningCommission

ConditionalUsePermit(CUP/UP)

(CEQAreview)

BuildingPermitProcess AllPermitsIssued–ConditionsSatisfied

LANDUSE&BUILDINGPERMITPROCESS(4+monthsforCUP/UP;BuildingPermitTBD)

CONFIRMATIONPROCESS(30days)

ApplytoCityManagerforCommercial

CannabisBusinessPermit

OpenBusiness ComplywithOperatingRegulations

Reviewafter1Year(Renewed)

(HdLCompanyStaff,PlanningDirector,ChamberExecDir,SCCannabisManager)

(>80%gradedfromPRC)(lessthan80%rejected)

(>80%gradedfromPRC;AppealstoCouncil)

AppealtoCouncil

AppealtoCouncil 9

CONDITIONAL CERTIFICATE - SELECTION PROCESS

SELECTIONPROCESS(4+months;August–)

MarketingRequestforApplications

ProposalReviewCommittee-PRC

QualifiedFinalists

QualifiedFinalistsPresenttoCity

Council

CityCouncilSelects;Awards

ConditionalCertificate

(HdLCompanyStaff,PlanningDirector,ChamberExecDir,SCCannabisManager) (>80%gradedfromPRC)

(>80%gradedfromPRC;AppealstoCouncil)

•  CriteriaforReviewIncludes:•  Ownership,pastandcurrentoperations,State

compliance,identification•  Financial/Pro-forma(3years)•  Disclosures–Litigation,Legalproceedings•  CertificatesofInsurance/SecurityPlan•  OdorControl/evidenceofsufficientcapitalization-

startupcosts•  HazardousMaterials/Communitybenefits•  Fees/Signatures•  NoSiteInformationtobeevaluated–

•  PolicyIssues:•  MembersofProposalReviewCommittee(PRC)?

•  Identifysiteaspartofapplication?•  Typeofcommunitybenefits(employment,contributions,economicincentivestothecity,etc.)

•  IsoneyearadequatetimetoreceiveUsePermitandcompleteimprovementsfromthedateofissuanceofaConditionalCertificate?

10

LAND USE & BUILDING PERMIT PROCESS

SelectedApplicantsApplyforLandUse

Entitlements

PlanningCommissionConditionalUse

Permit/UsePermit(CEQA)

BuildingPermitProcess AllPermitsIssued–ConditionsSatisfied

LANDUSE&BUILDINGPERMITPROCESS(4+monthsforUP;BuildingPermitTBD)

•  LandUseIssues:

•  Parking–spacesandtrafficflow•  Hoursofoperationforretail(9amto9pm)•  NohoursrestrictionsforTestinglaborManufacturer

•  Buffers•  Nooutdoorstorage

•  Graphics/Signagecontent•  Odor•  Security•  Garbagedisposal•  Conflictswithotheruses

11

Confirmation and Opening Process

CONFIRMATIONANDOPENINGPROCESS(30days)

ApplytoCityManagerforCommercial

CannabisBusinessPermit

OpenBusiness ComplywithOperatingRegulations

Reviewafter1Year(Renewed)

•  ConfirmationIssues:

•  AppealstotheCityCouncil•  PolicyIssues:

•  CannabisDeliveryPermit(CDL)foroutsidecityorinsidecitybusinesses–issuedbyChiefofPolice

•  Deliveriesrestrictedto8amto8pm

12

Next Steps:

-Developmentoftwoordinances:

-Title5-BusinessLicensesandregulations& -Title19–IntegratedDevelopmentRegulationsand Guidelines(“DevelopmentCode”)

-TentativePlanningCommissiononMay9th,2019-CityCouncilinJunewithOrdinancesandFeeResolutions(e.g.,CannabisDelivery

Permitfee,Transferfee,registrationandre-registrationfees,appealfee,backgroundchecksfee,DOJ/FBIclearances)

13

Questions / Direction

14