HomeMy WebLinkAbout2021-08 - Cannabis Title 13ORDINANCE NO. 2021-08
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA
MESA AMENDING CHAPTER IX (SPECIAL LAND USE REGULATIONS),
ARTICLE 21 (LOCATION OF MARIJUANA DISTRIBUTING,
MANUFACTURING, RESEARCH AND DEVELOPMENT AND TESTING
LABORATORIES), AND CHAPTER IV (CITYWIDE LAND USE MATRIX),
TABLE 13-30 (LAND USE MATRIX) OF TITLE 13 (CODE AMENDMENT
CO-2021-01) TO ESTABLISH THE DEVELOPMENT STANDARDS FOR
CANNABIS USES, INCLUDING RETAIL CANNABIS STOREFRONT
AND NON -STOREFRONT USES TO IMPLEMENT THE CITY OF COSTA
MESA RETAIL CANNABIS TAX AND REGULATION MEASURE
(MEASURE Q)
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS
FOLLOWS:
WHEREAS, on July 21, 2020, the City Council voted to place a ballot measure for
the 2020 General Election asking city voters whether or not to allow retail cannabis
storefront (dispensaries) and non -storefront (deliveries) businesses in the City;
WHEREAS, on November 3, 2020, city voters approved the "City of Costa Mesa
Retail Cannabis Tax and Regulation Measure", also known as, Measure Q;
WHEREAS, Measure Q authorizes the City Council to adopt an ordinance which
permits and regulates retail cannabis storefront (dispensaries) and non -storefront
(deliveries) businesses;
WHEREAS, Measure Q authorizes the City Council to impose a four -percent (4%) to
seven -percent (7%) gross receipts tax on retail cannabis businesses. In addition, Measure
Q requires retail cannabis businesses to meet certain operating requirements including
permitted zones, minimum of 1,000 feet separation distance from sensitive uses such as
schools, childcare centers, playgrounds and homeless shelters, security measures, and a
requirement for a labor peace agreement for businesses with two or more employees;
WHEREAS, a Zoning Code Amendment is necessary to implement Measure Q
and establish the minimum operating requirements and development standards in the
Costa Mesa Municipal Code to tax, review, and regulate retail cannabis storefront and
non -storefront businesses operating in the City;
Ordinance No. 2021-08 Page 1 of 10
WHEREAS, Chapter IX (Special Land Use Regulations), Article 21 (Location of
Marijuana Distributing, Manufacturing, Research and Development and Testing
Laboratories), Section 13-200.92 of Title 13 (Planning, Zoning and Development)
contains permitted zones and planning application requirements for cannabis distribution,
manufacturing, research and development, and testing laboratory uses. Chapter IV
(Citywide Land Use Matrix), Table 13-30 (Land Use Matrix) of Title 13 prohibits retail
cannabis sales;
WHEREAS, the proposed amendments to Chapter IX, Article 21 would add inter
alia a new section, Section 13-200.93, to establish the permitted zones, planning
application requirements, separation requirements from sensitive uses, and specific
development standards for retail cannabis uses. The proposed amendment to Table 13-
30 (Land Use Matrix) would revise cannabis retail sales from prohibited to conditionally
permitted with an MCUP as well as add a land use category for cannabis retail sales non -
storefront;
WHEREAS, the Title 13, "Planning, Zoning and Development", (the Zoning Code)
of the Costa Mesa Municipal Code sets forth the zoning and land use regulations for the
City in general; and,
WHEREAS, the City Council held a public hearing on April 20, 2021 with all
persons having the opportunity to speak for and against the proposal; and,
WHEREAS, the Zoning Code Amendment and Ordinance No. 2021-08 have been
reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA
guidelines, and the City's environmental procedures. The Code Amendment has been
found to be exempt pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule)
and Section 15308 (Class 8, Actions by Regulatory Agencies for the Protection of the
Environment) because the recommended ordinance will not have a significant effect on
the environment. The Code Amendment is also exempt pursuant to CEQA Guidelines
Section 15301 (Class 1, Existing Facilities), Section 15303 (Class 3, New Construction or
Conversion of Small Structures), and Section 15332 (Class 32, In -fill Development
Projects) because future construction for retail cannabis businesses will largely be within
existing buildings for interior tenant improvements or involve minor new construction that
will also not have a significant effect on the environment; and
Ordinance No. 2021-08 Page 2 of 10
WHEREAS, the CEQA findings reflect the City's independent judgment and
analysis; and
WHEREAS, the City Council finds that the provisions of this Ordinance are
consistent with the City of Costa Mesa's General Plan; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have
occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Zoning Code Amendment. Chapter IX (Special Land Use Regulations),
Article 21 (Location of Marijuana Distributing, Manufacturing, Research and Development
and Testing Laboratories), and Chapter IV (Citywide Land Use Matrix), Table 13-30 (Land
Use Matrix) of Title 13 as specified in Exhibit 1, attached hereto and incorporated herein by
this reference, are hereby amended in their entirety as set forth therein.
SECTION 2. Compliance with CEQA. Pursuant to the California Environmental Quality
Act (CEQA), the Code Amendment has been found to be exempt pursuant to CEQA
Guidelines Section 15061(b)(3) (General Rule) and Section 15308 (Class 8, Actions by
Regulatory Agencies for the Protection of the Environment) the ordinance will not have a
significant effect on the environment. The Code Amendment is also exempt pursuant to
CEQA Guidelines Section 15301 (Class 1, Existing Facilities), Section 15303 (Class 3,
New Construction or Conversion of Small Structures), and Section 15332 (Class 32, In -
fill Development Projects) because future construction for retail cannabis businesses will
largely be within existing buildings for interior tenant improvements or involve minor new
construction that will also not have significant effect on the environment.
SECTION 3. Inconsistencies. Any provision of this ordinance which is inconsistent with
state law shall be interpreted in a manner to be consistent with state law. Any provision
of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions
of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed
or modified to that extent necessary to effect the provisions of this Ordinance.
Ordinance No. 2021-08 Page 3 of 10
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or
portion of this Ordinance is for any reason held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision shall not affect the validity
of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa
hereby declares that it would have adopted this Ordinance and each section, subsection,
sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases or portions be declared invalid or
unconstitutional.
SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days from
its adoption.
SECTION 6. Certification. The Mayor shall sign and the City Clerk shall certify to the
passage and adoption of this Ordinance and shall cause the same to be published or
posted in the manner required by law.
Ordinance No. 2021-08 Page 4 of 10
PASSED AND ADOPTED this 15th day of June, 2021.
ATTEST:
'6�w" f1:P/VL
ff'renda GreenUCity Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF COSTA MESA )
John Stephens, Mayor �-
APPROVED AS TO FORM:
Kimberly i4all Barlow, City Attorney
I, Brenda Green, City Clerk of the City Council of the City of Costa Mesa, hereby
certify that the above and foregoing Ordinance No. 2021-08 was introduced and
considered section by section at a regular meeting of said City Council held on the 1st
day of June, 2021, and thereafter passed and adopted as a whole at the regular
meeting of said City Council held on the 15th day of June, 2021, by the following roll call
vote:
AYES: COUNCILMEMBERS: CHAVEZ, GAMEROS, HARLAN, HARPER,
REYNOLDS, MARK, AND STEPHENS.
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the Seal of the
City of Costa Mesa this 16th day of June, 2021.
zfmd&lu&�
renda Gre n, City Clerk
Ordinance No. 2021-08 Page 5 of 10
EXHIBIT 1
ARTICLE 21. LOCATION OF CANNABIS DISTRIBUTING, MANUFACTURING, RESEARCH AND
DEVELOPMENT, TESTING LABORATORIES, RETAIL STOREFRONT AND RETAIL NON -
STOREFRONT USES
13-200.90. Purpose.
The purpose of this article is to regulate the location of and standards for cannabis distributing
facilities, manufacturing sites, research and development laboratories, testing laboratories, retail
storefront and retail non -storefront uses in order to promote the health, safety, morals and general
welfare of the residents and the businesses within the city by maintaining local control over the
ability to authorize and regulate the location of cannabis businesses.
13-200.91. Applicability.
(a) Nothing in this article is intended, nor shall it be construed, to burden any defense to
criminal prosecution under the Compassionate Use Act of 1996.
(b) All the provisions of this article shall apply to all property, public and private, within
the city.
(c) All the provisions of this article shall apply indoors and outdoors.
(d) Unless otherwise provided herein or in this title, the terms used in this article shall
have the meaning ascribed to them in Title 9, Chapter VI of this Code.
13-200.92. Cannabis distributing facilities, manufacturing sites, research and development
laboratories, and testing laboratories.
(a) Cannabis distribution, manufacturing, research and development and testing is
prohibited in all zone districts within the city, except for those portions of the
manufacturing park (MP) and planned development industrial (PDI) zones that are located
both north of South Coast Drive and west of Harbor Boulevard, excluding any portion of
the South Coast Collection (the "Green Zone").
(b) A conditional use permit shall be required and may be issued to allow the location of
any business engaged in the distribution, manufacturing, researching and developing, or
testing of cannabis in the MP or PDI zones pursuant to subsection (a) of this section, subject
to the following conditions:
(1) The requirements of Chapter III of this title have been met;
(2) The findings for granting a conditional use permit in accordance with section 13-
29(g) are met;
(3) The applicant obtains a cannabis business license pursuant to Chapter VI of Title
9 of this Code; and
(4) The use is conducted in compliance with all applicable state and local laws.
(c) No person shall engage in any use set forth in this article unless that use is specifically
authorized by Chapter VI of Title 9 of this Code.
Ordinance No. 2021-08 Page 6 of 10
13-200.93. Cannabis retail storefront and non -storefront uses.
(a) Cannabis retail storefront uses are prohibited in all zone districts within the city, except
for the commercial zone districts.
(b) Cannabis retail non -storefront uses are prohibited in all zone districts within the city,
except for the commercial zone districts and within the Green Zone.
(c) The following planning application shall be required for cannabis retail uses:
(1) A conditional use permit shall be required for retail storefronts and non -
storefronts; and
(2) An amendment to the approved conditional use permit shall be required for
existing licensed cannabis distribution or manufacturing businesses to operate a
retail non -storefront under the existing business and within the same licensed
premise. The amendment shall be processed as a minor conditional use permit.
(d) A conditional use permit may be issued to allow the location of a retail cannabis use
pursuant to subsections (a) and (b) of this section, subject to the following conditions:
(1) The requirements of Chapter III of this title have been met;
(2) The findings for granting conditional use permit pursuant to section 13-29(g) are
met;
(3) The applicant obtains a cannabis business license for the location pursuant to
Chapter VI of Title 9 of this Code; and
(4) The use is conducted in compliance with all applicable state and local laws.
(e) No cannabis retail storefront use shall be located:
(1) Within one -thousand (1,000) feet from a K-12 school, playground, child daycare,
or homeless shelter, or within six -hundred (600) feet from a youth center, that is in
operation at the time of submission of a completed Cannabis Business Permit
application;
(2) All distances shall be measured in a straight line from the premises where the
cannabis retail use is to be located to the closest property line of a K-12 school,
playground, child daycare, homeless shelter or youth center;
i. For purposes of this sub -sub -section, the property line of a playground
shall be a thirty (30) foot radius from the exterior physical boundaries of
the playground equipment area.
(3) All distances shall be measured without regard to the boundaries of the city and
and/or intervening structures or other barriers;
(4) At a property as for which the zoning administrator, director or planning
commission determines, based on a preponderance of the evidence, that
unpermitted and/or illegal cannabis activity involving sales, delivery and/or
dispensing has taken place at any time in the 365 days preceding an application
under this Article. If an unpermitted and/or illegal cannabis activity has existed on
a property no cannabis business may be permitted on that property unless 365 days
has elapsed since that unpermitted and/or illegal cannabis activity has vacated the
property, and the owner of that property has compensated the City for any and all
expenditure of public funds and resources, including all costs, expenses (including
but not limited to the salaries of peace and/or code enforcement officers) and/or
attorney's fees, incurred in investigating, abating or attempting to abate the
unpermitted use or uses, whether or not any type of civil, criminal or
administrative proceedings have been commenced against the property, provided
Ordinance No. 2021-08 Page 7 of 10
however if the owner of the property is required to evict that use, the 365 days
shall begin to run from the date of the filing of an unlawful detainer complaint, in
which case the a permit may be issued after the 365 days had elapsed and that use
is no longer occupying the property.
(5) A determination and/or finding under sub -section (e)(4) is subject to the appeal
provisions of Chapter IX of Title 2 of this Code.
(f) Retail storefront uses shall be subject to the following development standards in
addition to those contained in Chapter VI of Title 9:
(1) Opaque window coverings unless required by the City for security purposes are
prohibited;
(2) Permanent security or safety bars shall not be placed on any interior or exterior
windows or door, unless required by the City for security purposes;
(3) Directional signage to the use including but not limited to A -frame signs,
sandwich board signs, banners, or flags are prohibited;
(4) No use shall advertise by having a person holding a sign and advertising the
business to passersby, whether such person is on the premises of the commercial
cannabis business or elsewhere including, but not limited to, the public right-of-
way;
(5) Uses shall comply with the landscaping requirements set forth in Chapter VII of
this title including bringing the site landscaping into conformance when feasible
as determined by the director;
(6) Parking requirements shall be subject to Section 13-89;
(7) The hours of operation may be established as part of the planning application
subject to the final review authority and may be more restrictive than those set
forth in Chapter VI of Title 9. Modification of operation hours when established
as part of the planning application shall be subject to an amendment of the
planning application;
(8) Drive -through services or walk-up window services are prohibited;
(9) Outdoor seating or patio areas are prohibited;
(10) Special events that include live entertainment, dancing, and/or amplified music, or
that are otherwise visible and/or audible from the public right-of-way, are
prohibited;
(11) All cannabis products shall be secured after business hours in a locked container
under 24-hour video surveillance; and
(12) For uses within two hundred (200) feet of a residential zone, all exterior lighting
shall be shielded and/or directed away from residential areas. In addition, trash
facilities shall be screened from view and designed and located appropriately to
minimize potential noise and odor impacts to adjacent residential areas.
(g) Non -storefront uses shall be subject to the following development standards in addition
to those contained in Chapter VI of Title 9:
(1) Uses may operate independently from a retail storefront or as a part of, and in
conjunction with, a permitted storefront, distribution, or manufacturing facility;
(2) Parking requirements shall be subject to Section 13-89 and shall also include
sufficient parking spaces for delivery vehicles;
(3) All deliveries to customers shall be completed by 10:00 p.m.; and
Ordinance No. 2021-08 Page 8 of 10
(4) The general public shall not be permitted to enter the premises of a non -storefront
retail use.
(h) Except as specifically authorized in this article, all other cannabis retail uses such as
but not limited to lounges and cafes are expressly prohibited in the city.
(i) No person shall engage in any use set forth in this article unless that use is specifically
authorized by Chapter VI of Title 9 of this Code.
(j) Any cannabis use, including but not limited to those involving sale, delivery and/or
dispensing, that is not permitted, licensed and otherwise in full compliance with all
applicable provisions of this Code and state and local law, shall not be considered a
legally non -conforming use pursuant to, and notwithstanding any contrary provisions
of, Chapter IX of this title.
13-200.94. Declaration of public nuisance.
Any use, structure, or property that is altered, enlarged, erected, established, maintained, moved,
or operated contrary to the provisions of this article, is hereby declared to be unlawful and a
public nuisance and may be abated by the city through civil and/or administrative proceedings by
means of a restraining order, preliminary or permanent injunction, or in any other manner
provided by law for the abatement of such nuisances.
13-200.95. Violations.
Violations of this article shall be punishable pursuant to the provisions of section 13-16 in
addition to any other remedy available at law or in equity.
CHAPTER IV. CITYWIDE LAND USE MATRIX
TABLE 13-30
CITY OF COSTA MESA LAND USE MATRIX
ZONES
[RIMD
112-
112-
Cl-
PDR-
PDR-
PDR-
PDR-
1&R-
I&RM
LAND USES
HD
I
R3
AP
CL
Cl
C2
S'
TC'
MG
MP
LD'
MD'
HD'
NCM'
PDC'
PDI'
1&R'
S'
LT'
P
INSTITUTIONAL AND RECREATIONAL USES
31a. Marijuana
and/or medical
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
marijuana
cultivation
3Ib. Cannabis
and/or marijuana
C
C
distributer
31c. Cannabis
and/or marijuana
C
C
manufacturer or
processor
Ordinance No. 2021-08 Page 9 of 10
' Uses proposed in this zone are subject to verification of consistency with the adopted master plan. Uses not specified in the
master plan, could be allowed, subject to the review process indicated in this matrix, if the proposed use is determined to be
compatible with the adopted master plan. Residential uses shall not be permitted on any site or parcel of land on which
residential uses are expressly prohibited by the general plan.
'- This use is subject to the requirements of the referenced Municipal Code article or section.
If residential uses exist, accessory uses shall be permitted.
J For the purposes of this table, the symbols in the non -shaded areas shall have the following meaning: C—Conditional Use
Permit; MC —Minor Conditional Use Permit; P—Permitted; --Prohibited; and S—Special Use Permit.
s Six-hundred--fifty-foot separation required between sober living homes, or from state licensed alcohol or drug abuse
recovery or treatment facilities. CMMC 13-311(a)(10)(i).
6 Subject to the separation requirement set forth in sections 13-322(a)(3) and 13-323(b).
7 Small boardinghouses shall locate at least six hundred fifty (650) feet from any other small boardinghouse. Large
boardinghouses shall be located at least one thousand (1,000) feet away from any other boardinghouse.
R Uses prohibited in the base zoning district of a mixed -use overlay zone shall also be prohibited in the overlay zone.
9 Prohibited at the SoCo property, 3303 through 3323 Hyland Ave.
1° Emergency shelters located on sites owned, controlled, and/or operated by the city in the MP and/or the PDI zone are a
permitted use and the standards in section 13-200.79(1), (2), (4), (8), (10) and (13) do not apply to such uses.
Ordinance No. 2021-08 Page 10 of 10