03/15/17 City Council Agenda Packet

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Location and Impacts Eugene currently has five medical marijuana dispensaries and 28 recreational marijuana businesses. Two business locations have both medical and recreational marijuana available. Fifteen of the 31 businesses are located closer than 1000 feet (approximately 2.5 blocks) from at least one other similar business. All of the businesses in close proximity are in the downtown area or near 6th and 7th Avenues east of Chambers. State law prohibits use of marijuana products in public places which greatly reduces impacts from smoking. Impacts to the public walking by these businesses are not clearly evident. Local Ownership The legislative bill approved in 2015 to allow medical dispensaries required a majority of owners to be Oregon residents. However, in 2016, due to public testimony, legal issues and difficulties in determining compliance with the standard, the legislature rescinded this requirement. The City has no data available regarding local ownership of businesses. Neither the OLCC nor any of the Oregon cities researched for this discussion have ownership requirements or data readily available. Other Oregon Cities Staff researched local requirements for retail marijuana uses within other Oregon cities. That review shows that Eugene is not the only city in Oregon that has not adopted a separation requirement for recreational marijuana businesses. Land use codes for Corvallis, Salem and Medford are similar to Eugene allowing these businesses in numerous commercial zones. None of these jurisdictions have a local licensing program or separation requirements. Salem adopted a stringent medical dispensary license process including background checks for business owners and employees at the start of the state program. Recently, the city council proposed a similar license process for recreational marijuana businesses. However, during the public hearing process, a theme emerged that the city was duplicating the state licensing program and local requirements weren't needed. Salem did not adopt standards for recreational sales and rescinded the existing program for medical dispensaries. Portland has over 100 retail businesses and has a robust licensing program. An application is submitted to the Office of Neighborhood Involvement and requires personal history, security plan, marijuana control plan, business license certificate, state business registration, copy of commercial building permit and electrical permit for security alarm from the Bureau of Development Services, security alarm permit and copy of lease with written property owner consent. There is a 1000 foot separation requirement from other retail marijuana businesses. The application information is sent to the Police, Fire and Development Services Bureaus as well as the District Coalition Office, Neighborhood Association and Business Association. Property owners and occupants within 300 feet receive a public notice with notices posted near the proposed location prior to approval. Neighborhood Involvement staff inspect the site to verify compliance with applicable standards. The initial permit fees are about $5,000 with an annual renewal fee of $750.