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Home My WebLink About03/15/17 City Council Agenda PacketCity Council 125 E. 8th Ave., 2nd Floor Eugene, OR 97401-2793 541-682-5010 • 541-682-5414 Fax www.eugene-or.gov AMENDED AGENDA EUGENE CITY COUNCIL AGENDA March 15, 2017 12:00 p.m. CITY COUNCIL WORK SESSION Harris Hall 125 East 8th Avenue Eugene, Oregon 97401 Meeting of March 15, 2017; Her Honor Mayor Lucy Vinis Presiding Councilors Alan Zelenka, President Mike Clark, Vice President George Poling Greg Evans Emily Semple Chris Pryor Claire Syrett Betty Taylor Note: This agenda has been amended to reflect the addition of Item B and the reschedule of Item A: 'Parks and Recreation System Plan Update" to a later date. 12:00 p.m. CITY COUNCIL WORK SESSION Harris Hall, 125 East 8th Avenue A. WORK SESSION Separation of Retail Marijuana Businesses B. WORK SESSION House Bill 2669 Discussion The Eugene City Council welcomes your interest in these agenda items. This meeting location is wheelchair - accessible. For the hearing impaired, an interpreter can be provided with 48 hours' notice prior to the meeting. Spanish-language interpretation will also be provided with 48 hours' notice. To arrange for these services, contact the receptionist at 541-682-5010. City Council meetings are telecast live on Metro Television, Comcast channel 21, and rebroadcast later in the week. El consejo de la Ciudad de Eugene agradece su interes en estos asuntos de la agenda. El lugar de la reuni6n tiene acceso para sillas de ruedas. Se puede proveer a un interprete para las personas con discapacidad auditiva si avisa con 48 horas de anticipaci6n. Tambien se puede proveer interpretaci6n para espanol si avisa con 48 horas de anticipaci6n. Para reservar estos servicios llame al 541-682-5010. Las reuniones del consejo de la ciudad se transmiten en vivo por Metro Television, Canal 21 de Comcast y son retransmitidas durante la semana. For more information, contact the Council Coordinator at 541-682-5010, or visit us online at www.eugene-orgov. EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Separation of Retail Marijuana Businesses Meeting Date: March 15, 2017 Department: Planning & Development www.eugene-orgov ISSUE STATEMENT Eugene Agenda Item Number: A Staff Contact: Mike McKerrow Contact Telephone Number: 541-682-5288 State standards require medical marijuana dispensaries to have a 1000 foot separation from schools and other medical dispensaries. Recreational marijuana businesses require the same separation from schools but not from each other. Industry representatives recently requested Eugene adopt a 1000 foot separation requirement for new recreational marijuana businesses. State law allows cities to adopt separation standards for these uses as appropriate for their community. BACKGROUND When the state legislature approved medical marijuana dispensaries several years ago and more recently, recreational marijuana sales, Eugene's land use code was not modified. Both businesses are considered as "Specialty Store" in the land use code and are permitted in the C-1 Neighborhood Commercial, C-2 Community Commercial and C-3 Major Commercial zones. The Oregon Liquor Control Commission (OLCC) reviews and issues licenses for recreational marijuana sales. As part of the OLCC process Eugene staff reviews a land use compatibility application for each site to confirm the use is in a permitted zone. Council requested a work session to receive the following information. 1. Review the number of retail stores in close proximity to each other and possible impacts. 2. Explore the influx of outside investors competing with local businesses and community revenue. 3. Compare Eugene's standards for these types of businesses with other Oregon cities. The request for the work session included a proposed outcome of beginning the legislative process to establish a 1,000 foot buffer between new marijuana related businesses. The city also has received a request that a 1,000 foot buffer be created between a day care facility and a new marijuana related business. 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. Bend has 18 retail businesses with separation requirements of 1000 feet from each other. In addition, a 150 feet separation is required from developed parks and day care uses. The application process with $600 application fee and annual review requires compliance with local zoning, systems development charges estimate, water and sewer analysis and building code review. OLCC Exception The City has approved two exceptions to the OLCC standard of at least 1000 feet between a retail marijuana business and a school. Recently another request for an exception ordinance has been received. This work session provides an opportunity to clarify policy for exception requests. The State of Oregon allows a city to make an exception when the new medical or recreational marijuana business is at least 500 feet but less than 1000 feet from an elementary or secondary school and there is a physical barrier between the two uses (Senate Bill 1511). In both previous exceptions, the Oregon Liquor Control Commission (OLCC) identified a nearby school when the business either already had a license or was significantly invested in the application process to obtain a license. Also, in both cases, an arterial street with at least 20,000 average daily traffic was the primary factor in creating a physical barrier between the school and the business. Staff suggests using two criteria to be met before exception requests are discussed at the council level. Requests would only be considered if there is an arterial street with at least 20,000 average daily traffic between the school and the proposed business, and neither the applicant nor the OLCC was aware that a school was located within a 1000 feet of the proposed site at the time of application submittal. This policy would better reflect the intent of the SB 1511 exception process rather than allowing any exception request if the business was at least 500 feet from a school. RELATED CITY POLICIES Since Eugene's original zoning ordinance adoption in 1948, there has not been any minimum separation requirement in the land use code for any specific type of business, including adult related businesses. The only City land use code standard relating to minimum separation requirements is a need for at least 200 feet between freestanding signs in some commercial and industrial zones. COUNCIL OPTIONS No council options at this time. Work session is informational. CITY MANAGER'S RECOMMENDATION There is no City Manager recommendation. SUGGESTED MOTION There is no suggested motion. ATTACHMENTS A. Map of Medical & Recreational Marijuana Dispensaries in Eugene FOR MORE INFORMATION Staff Contact: Mike McKerrow Telephone: 541-682-5288 Staff E -Mail: mike.j.mckerrow@ci.eugene.or.us Attachment A Medical & Recreational Marijuana Dispensaries in Eugene Recreational Marijuana Dispensaries 0 Eugene UGB rl Medical Marijuana Dispensaries r 1,000 ft distance to dispensaries Map displays only Medical dispensaries that have waived confidentiality and consented for information to be public There may be other dispensaries, but locations are confidential. Data: Medical Marijuana Dispensaries: State of Oregon Health Authority 2/8/2017; Recreational Marijuana Dispensaries: OLCC 2/8/2017 Miles 0 0.5 1 0 City of Eugene PDD March 1, 2017 • L J C7 Recreational Marijuana Dispensaries 0 Eugene UGB rl Medical Marijuana Dispensaries r 1,000 ft distance to dispensaries Map displays only Medical dispensaries that have waived confidentiality and consented for information to be public There may be other dispensaries, but locations are confidential. Data: Medical Marijuana Dispensaries: State of Oregon Health Authority 2/8/2017; Recreational Marijuana Dispensaries: OLCC 2/8/2017 Miles 0 0.5 1 0 City of Eugene PDD March 1, 2017 J 5 Airpo d Irvington Dr Irving Rd Beltline Maxwell Rd Crescent Ave Barger Dr of Beltline a 0 39 w t7 z# o y�F dl Cal ouni I Rd 3 LU Royal Ave 32 `Ossiy 41 >,, 0 °'G 3 Harlow Rd Roo vett Blvd 33 6 30 ) 38 0 08 m�,� -a 9 6th 34 313 11 `1 W 11th Ave co ee 0 42 �r�o`Nj ren k/;n e/Vd 5 W a 1 th o 9 1 W 18th Ave Lap in d d r � N E h A C ve E65 U 2 A w Recreational Marijuana Dispensaries 0 Eugene UGB rl Medical Marijuana Dispensaries r 1,000 ft distance to dispensaries Map displays only Medical dispensaries that have waived confidentiality and consented for information to be public There may be other dispensaries, but locations are confidential. Data: Medical Marijuana Dispensaries: State of Oregon Health Authority 2/8/2017; Recreational Marijuana Dispensaries: OLCC 2/8/2017 Miles 0 0.5 1 0 City of Eugene PDD March 1, 2017 Downtown Map: Medical & Recreational Marijuana Dispensaries in Eugene 10 3 W 6th Ave W 7th Ave W 8th ve W roadwa W th Ave W 19th Ave E 6th Ave E 7th Ave i 16 _ a S Park St 2( a E 10th.#fe E 1 th Ave 12 Ave E 8th Ave co roa A15t e e Ea e " i6 = a E 1 Ave E 18th Ave I ® Recreational Marijuana Dispensaries 0 Eugene UGB + Medical Marijuana Dispensaries m 1,000 ft distance to dispensaries Map displays only Medical dispensaries that have waived confidentiality and consented for information to be public. There may be other dispensaries, but locations are confidential. Data: Medical Marijuana Dispensaries: State of Oregon Health Authority 2/8/2017; Recreational Marijuana Dispensaries: OLCC 2/8/2017 Feet 0 500 0 A Me City of Eugene PDD February 28, 2017 th Aveth L Ave c C0 as � v o c � � t N 3 c J J W 14th Ave 1� W 15th Ave c S as W 16th Ave U W 17th Ave �~---� W 18th Ave W 19th Ave E 6th Ave E 7th Ave i 16 _ a S Park St 2( a E 10th.#fe E 1 th Ave 12 Ave E 8th Ave co roa A15t e e Ea e " i6 = a E 1 Ave E 18th Ave I ® Recreational Marijuana Dispensaries 0 Eugene UGB + Medical Marijuana Dispensaries m 1,000 ft distance to dispensaries Map displays only Medical dispensaries that have waived confidentiality and consented for information to be public. There may be other dispensaries, but locations are confidential. Data: Medical Marijuana Dispensaries: State of Oregon Health Authority 2/8/2017; Recreational Marijuana Dispensaries: OLCC 2/8/2017 Feet 0 500 0 A Me City of Eugene PDD February 28, 2017 Eugene Table to Accompany Maps Medical• of 1 Map Id Name Address 3 Oregon Medigreen 570 Lawrence St #112 4 The Herbal Connection, LLC 463 River Ave 14 Eugene OG 2045 Franklin Blvd 20 Hamiltonian Dynamics, Inc. 835 E Park St 34 Whiteaker Grange LLC 698 West 6th Avenue Data: Contains only Medical dispensaries that have waived confidentiality and consented for information to be public. There may be other dispensaries, but locations are confidential. State of Oregon Health Authority, 2/8/2017 Recreational• of 1 Map ID Name Address 2 The Greener Side 1553 Oak St 4 The Herbal Connection, LLC 463 River Ave 6 Amazon Organics 3443 Hil and St 7 Next Level Health, LLC 2837 Willamette St 9 Twenty After Four Wellness Center 420 Blair Blvd, Unit A 11 East 11th, Inc. 588 E 11th Ave 14 Eugene OG 2045 Franklin Blvd 23 Jamaica Joel's 37 W 13th Ave, Ste 201 25 Eugreen Health Center LLC 1000 Obie St, Ste A 28 Moss Crossing LLC 2751 Friendly St 29 A othca 804 E. 12Th Avenue 30 Nodak Green Prairie 390 Coburg Rd 30 Flowr Of L fe 114 West Broadway 31 Glassroots" 980 West 5Th Ave 32 Hwy 99 Cannabis Company 1083B Hwy 99N 32 Eugreen Health Center 1111 Willamette St. 33 Sweet Tree Farms 4097 West 11Th Avenue 33 Nectar 340 River Road 34 Emerald City Medicinal 1474 West 6Th Avenue 35 Rare Earth Organics Llc 2699 Roosevelt Blvd 36 Frequent Vibrationz 1409 Oak St. 37 The Growers Guild Gardens Llc 2270 West 11Th Ave 37 Ore on'S Green Rush 2644 River Road #5 38 The Peo le'S Wellness Center 71 Centennial Loop Suite B 39 TJ'S Provisions 1910 Empire Park Drive 40 TJ'S On The Alley 1027 Willamette Street 41 Terpene Station 645 River Rd Ste 3 42 Serra Eugene 1201 W. 11Th *Licensees with an " will be active once notice of their Oregon Medical Marijuana Program registration has been surrendered and received by the OLCC. Data: Oregon Liquor Control Commission (OLCC) 2/8/2017