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HomeMy WebLinkAboutZOA-13-01City Council Minutes October 14, 2013 Em housing stock) has long since gone by the way, It has become very social and political. Their members are running for council. It appears we are funding over $I OOK to a private organization for marketing — marketing mostly for WR2020, not the city. It's time for them to be on their own. — She is sorry to see cuts for staffs medical bills. aub Herb Schillereff (Wheat Ridge), 50jear resident, spoke in opposition to allowing the sale of recreational marijuana, It's detrimental to our community and not needed. =7 Councilmember Langworthy said this ordinance will not address home growers. - Were a home rule c4 and we don't have to do this, She wishes we'd wait to see wh other communities do to manage this, and what Denver does to address the impact the smell of mariluana on neighboring shops and offices. - It will increase the numbe of homes that have marijuana in them, thereby exposing more children to Councilmernber Davis believes the ordinance is well thought out in that it restricts the distance from schools and has spacing regulations for the allowed shops Councilmember Jay spoke of the negative health effects of marijuana. She supports medical marijuana, but doesn't think recreational maot uana is healthy, nor does it represent our home town values. 4. Resolution �j_1-2013 -- adopting the updated Northwest Subarea Plan and, by such adoption, amending the Wheat Ridge Comprehensive Plan (Case No. WPA-13-01/NW Subarea) Mayor DiTullio opened the public hearing. L , =,k1 1L1L9worth� introduced Agenda Item 4. The updated plan provides land use recommendations, implementation actions, financing tools, and new graphics. The overall vision and long term nature of the pt are not changed, Changes include" Expanding the mixed use TOD area to include most of the land north of the railroad tracks I �� Wa t Pdge _.; � -3 ,, �E " I)V -I) ITEM NO: DATE: October 14, 2013 REQUEST FOR CITY COUNCIL ACTION VIA ` D 0-0 I C ot"a L TITLE: COUNCIL BILL NO. 13 -2013 - AN ORDINANCE AMENDING CHAPTER 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XIII CONCERNING RETAIL MARIJUANA AND MAKING CERTAIN AMENDMENTS TO CHAPTER 26 (ZONING AND DEVELOPMENT) IN ASSOCIATION THEREWITH ❑ PUBLIC HEARING ❑ BIDS /MOTIONS ❑ RESOLUTIONS QUASI- JUDICIAL: ❑ ORDINANCES FOR 1 READING (09/09/2013) ® ORDINANCES FOR 2 READING (10/14/2013) ❑ YES City Attorney /1 • _V City Manager ISSUE: On November 6, 2012, the people of the State of Colorado adopted Amendment 64 which amended the Colorado Constitution by adding Article XVIII Section 16 thereto concerning the legalization of the recreational use of marijuana. Amendment 64 also authorized the licensing by state and local authorities of businesses that cultivate, manufacture and test marijuana and marijuana products for retail sale. The amendment fixed certain dates by which the state had to act to implement the licensing of retail marijuana establishments. The state has met those dates thus far. On March 11, 2013, Council adopted Ordinance 1533, Series 2013, which enacted a moratorium on the issuance or consideration of any City license or permit concerning retail marijuana establishments and marijuana clubs (locations permitting on -site consumption or use of marijuana). In May of this year, the General Assembly, through House Bill 13 -1317, enacted the Colorado Retail Marijuana Code (C.R.S. §§ 12- 43.4 -101 et seq.) which authorized the state to license and regulate the sale, distribution, cultivation, growth, manufacture and testing of retail �D ti V : \Forms \CAFtemp late Retail Marijuana October 14, 2013 Page 2 marijuana and retail marijuana products throughout the state. The Code named the Colorado Department of Revenue ( "DOR ") as the state's licensing authority and further authorized the DOR to adopt rules that would further implement provisions of the Code. The DOR has adopted emergency rules that should be finalized in October of this year. The attached Ordinance regulates and licenses retail marijuana businesses seeking to operate in the City, and establishes the appropriate zoning for those businesses. The provisions in this Ordinance are consistent with state law. PRIOR ACTION: Council adopted Ordinance 1533, Series 2013, on March 11, 2013 enacting a temporary moratorium on the issuance or consideration of any City license or permit concerning retail marijuana establishments and marijuana clubs. Council reviewed and discussed ordinance options with staff at the August 5, 2013 study session. Council adopted Council Bill 13 -2013 on first reading on September 9, 2013. Staff noted a spelling error in subsection 11- 404(e) on page 7 which read "No marijuana clubs may operation or obtain a business license to operate within the city." That provision has been amended in the attached version of Council Bill 13 -2013 to read "No marijuana clubs may operate or obtain business license to operate within the city." The public hearing was originally scheduled for September 23, 2013 but was continued to October 14, 2013 due to the absence of two Council Members at the September 23` meeting. FINANCIAL IMPACT: The financial impact for the City is unknown. The City will begin receiving permit, license and /or operating fees for applications concerning retail marijuana establishments. As well, the City will receive sales tax for retail sales of marijuana and marijuana products within the City. BACKGROUND: Amendment 64 was proclaimed by the Governor as effective on December 6, 2012. Pursuant to the time frames outlined in Amendment 64, the state must begin accepting applications for retail marijuana establishments on October 1 st. As provided in the Colorado Retail Marijuana Code, only medical marijuana businesses that were in operation or had an application to operate such a business pending with the state on December 10, 2012 may apply for retail licensing at that time. Retail sale of marijuana will be permitted starting January 1, 2014. Under the Retail Marijuana Code, those existing medical marijuana businesses that desire to operate a retail outlet may seek to convert to a retail marijuana establishment in whole or in part. If the medical marijuana business converts in whole, all of the inventory of the medical marijuana business will become inventory of the retail establishment on January 1, 2014. If permitted by the local government, the medical marijuana business may convert in part and operate as a collocated business alongside the retail marijuana establishment. I IM i A Ff ♦ a to how the City regulates medical marijuana businesses. This Ordinance has been drafted in accordance with those recommendations and state law. 1. The Ordinance authorizes the City's tax and licensing division to act as the City's lo licensing authority. The tax and licensing division will be authorized to issue four t of retail marijuana establishment licenses for: 1) retail marijuana stores (i.e. retail outlets), 2) retail marijuana cultivation faces; 3) retail marijuana products manufacturers; and 4) retail marijuana testing facilities. i 4. Retail marijuana stores will be limited to operating between the hours of 8:00 a.m. and 7:00 p.m. in accordance with the state limitation on the hours of operation of medical marijuana centers. RECOMMENDATIONS: Planning Commission recommended awiroval of ;#L k v I September 19, 2013. RECOMMENDED MQTION: I move to approve Council Bill No. 13-2013, an ordinance amending Chapter I I of the Wheat Ridge Code of Laws by adding a new Article XIII concerning retail marijuana and making certain amendments to Chapter 26 (Zoning and Development) in association Retail Marijuana October 14, 2013 Page 4 therewith as amended, on second reading and that it take effect upon final adoption as provided by Section.. 5.11 of the Charter." Or, I move to table indefinitely Council Bill No. 1 -2013 concerning licensing of retail marijuana establishments for the following reasons) REPORT PREPARED ANT► REVIEWED BY; Gerald E. Dahl, City Attorney Patrick Goff, City Manager Council Bill No. 13 Ordinance No. Series 2013 #.1, . 4 , r i I C , 1 4 9 , ir ,11 9 81 WHEREAS, in the November 2012 general election, the voters of the State of Colorado adopted Amendment 64 to the Colorado Constitution ("Amendment 64"), codified at Article XVIII Section 16, which authorizes the sale of marijuana at retail; and WHEREAS, in May, 2013 the Colorado General Assembly adopted the Colorado Retail Marijuana Code, §§ 12-43.4-101 et seq., C.R.S., implementing a procedure for licensing the cultivation, manufacture and sale of marijuana and marijuana-products at retail; and WHEREAS, the City has no current land use • business regulation governing the operation of businesses that cultivate, manufacture, distribute or sell retail marijuana and/or retail marijuana products ("Retail Marijuana Establishments"); and WHEREAS, if not closely monitored and regulated, the presence of marijuana, even for the purposes legally permitted by Amendment 64 and the Colorado Retail Marijuana Code, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents • the City; and Attachment I NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE C11 OF WHEAT RIDGE, COLORADO: Sectign 1. Moratorium Concluded. The moratorium imposed • Ordinance 1533 shall conclude upon the effective date of this ordinance. Secti2o_2. Chapter I I of the Wheat Ridge Code of Laws is hereby amended by the adoption of a new Article X1 I I to read in its entirety as follows: M=:17IM-1-11717tit =-Q Sec. 11 -400. Authority Sec. 11-401. Definitions Sec. 11-402. Local licensing authority established Sec. 11-403. Types of retail marijuana establishment licenses Sec. 11-404. Retail marijuana establishment license required Sec. 11-405. Application of Colorado Retail Marijuana Code Sec. 11-406. Application for license Sec. 11-407. Operating fee Sec. 11 -408. Standards for approval of license, no hearing required Sec. 11-409. Authority to recommend and impose conditions on license. Sec. 11-410. Denial of license. Sec. 11 -411. Appeal of denial or conditional approval of license Sec. 11-412. Duration of license, renewal Sec. 11-413. Duties of licensee Sec. 11-414. Hearing, suspension, revocation of license Sec. 11-415. Collocation of operations Sec. 11-416. Prohibited locations Sec. 11-417. Signage Sec. 11-418. Taxes Sec. 11-419 Hours of operation Sec.11-420 Penalties, injunctive relief Secs. 11-421-11-422. Reserved Sec. 11-400. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 40, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31-15-103, C.R.S. (concerning municipal police powers); (d) Section 31-15-401, C.R.S. (concerning municipal police powers); (e) Section 31-15-501, C.R.S. (concerning municipal authority to regulate businesses); N (f) Section 12-43.4-101 et seq., C.R.S. (concerning municipal authority to license and regulate retail marijuana establishments); (g) The authority granted to home rule municipalities by article XX of the Colorado Constitution; (h) Article XVIII Section 16 of the Colorado Constitution; and (a) As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: ''!! 11 1 101 i�! I 'WOT*r*R M-I! 1 ; 0 " M License means a license to operate a retail marijuana establishment issued pursuant to this article. Licensee means the person to whom a license has been issued pursuant to this article and the Colorado Retail Marijuana Code to operate a business as described in section 12-43.4-401, C.R.S. Marjuana clubs means establishments other than private residences, medic marijuana establishments or retail marijuana establishments that allow the publi members or guests to consume marijuana, medical marijuana-infused products or ret marijuana products on-site. I Medical mar#uana means marijuana that is grown and sold pursuant to the provisions • the Colorado Medical Marijuana Code for a purpose authorized by section 14 of the Article XVIll of the Colorado Constitution. Medical marijuana center means a premises licensed pursuant to the Colorado Medic' Marijuana Code to operate a business as described in section 12-43.3-402, C I Medical marijuana establishment shall mean a medical marijuana center, a medicm marijuana-infused product manufacturer or an optional premises cultivation operation. I Medical marijuana-infused product shall mean a product infused with medical marijuana that is intended for use or consumption other than • smoking, including, but not limited to, edible products, ointments, and tinctures. Medical marijuana-infused product manufacturer shall mean a person licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12-43.3-404, C.R.S. Optional premises cultivation operation shall mean a premises licensed pursuant to this ordinance and the Colorado Medical Marijuana Code where a business described in section 12-43.3-403, C.R.S will operate. Person means a natural person, partnership, association, company, corporation, limited liability company, organization, or a manager, agent, owner, director, servant, officer, or employee thereof. M Reta# mar#uana means marijuana that is cultivated, manufactured, distributed or sold at retail in accordance with the provisions in Section 16 of Article XVIII of the Colorado Constitution and the Colorado Retail Marijuana Code Retail mar;juana cultivation facility shall mean a person licensed pursuant to this +rdinance and the Colorado Retail Marijuana Code to operate a business described in section 12-43.4-403, C.R.S. Retafl mar#uana establishment shall mean a retail marijuana store, a retail marijuana products manufacturer, a retail marijuana cultivation facility, or a retail marijuana testing facility. Retail marijuana products shall mean marijuana products as defined in section 16(2)(k) of Article XVIII of the Colorado Constitution that are produced at a retail marijuana products manufacturer. Primary care-giver has the meaning provided in section 14(l)(f) of Article XVIII of the Colorado Constitution as further defined and regulated in section 25-1.5-10'6, CR.S. 2nd 5 C.C.R. 1006-2. School shall mean a public or private preschool or a public or private elementary, middle, junior high or high school. State licensing authority shall mean the authority created for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale, and testing of retail marijuana in this state, pursuant to section 12-43.4-201, C.R.S. (b) In addition to the definitions provided in subsection (a) of this section, the #ther defined terms in section 16 of Article XVIII of the Colorado Constitution are incorporated into this article by reference. (a) There is hereby established a local licensing authority, which shall have and is vested with the authority to: A 1. Grant and refuse licenses and approve and deny applications for renewal and transfer of licenses for the sale, cultivation and manufacture of retail marijuana and retail marijuana products; 2. Promulgate reasonable rules and regulations concerning licenses issued under this article; 3. Suspend and revoke licenses issued under this article in the matter provided by law; and 4. Have all of the powers of the local licensing authority as provided in the Colorado Retail Marijuana Code. (b) The Tax and Licensing Division of the City shall serve as the local licensing authority for any administrative purposes described in subsections (a)(1), (a)(2) and (a)(4) of this section. An administrative hearing officer shall serve as the local licensing authority for purposes of hearing any requests for suspension or revocation described in subsection (a) The local licensing authority may issue the following types of retail marijuana establishment licenses: (b) Each type of retail marijuana establishment license issued under this article is separate and distinct. .IE= (a) No person shall operate a retail marijuana establishment within the City without a valid and appropriate retail marijuana establishment license issued in accordance with this article. (b) This requirement to obtain the appropriate retail marijuana establishme license is in addition to the requirement to obtain a business license pursuant to articlel -#f this chapter and any other license or permit required by the City. (c) No person shall operate a retail marijuana establishment within the City without a valid and appropriate license to operate such establishment issued by the state licensing authority in accordance with the provisions of the Colorado Retail Marijuana Code. 0 (d) No person may operate a business within the city concerning the sale, use, consumption, manufacture of marijuana unless specifically authorized pursuant to the provisions of this article. (e) No marijuana clubs may operate or obtain a business license to operate within the city. Sec. 11-405. Application of Colorado Retail Marijuana Code. Except as otherwise provided herein, the local licensing authority shall be governed by the Colorado Retail Marijuana Code now in effect or subsequently amended. In the event of a conflict between the provisions in this article and those in the Colorado Retail Marijuana Code, the more stringent provision shall apply. Sec. 11-406. Application for license. (a) A person seeking to obtain a license pursuant to this article shall file an application with the local licensing authority on a form provided by the state, and shall include all additional information required by the Colorado Retail Marijuana Code. (c) The purpose of the operating fee is to cover the costs of inspection administration and enforcement of retail marijuana establishments. The amount of the *perating fee shall be fixed by the City Council by motion, Sec. 11-408. Standards for approval • license, no hearing required. IMMM-72110MAIMMINIft 111RUMPRUTMne 1. The application (including any required attachments and submission is complete and signed by the applicant; i 2. The applicant has paid the operating fee and any other fees required by this code; 0 0 (b) Comply with all of the terms and conditions of the license; (f) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule • regulation concerning the possession, sale • distribution of retail marijuana; (g) Permit inspection • its records and operation by the local licensing authority for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws; and FJ (h) Permit inspection of the premises by authorized City officials during if rAp t is atlicle. (a) A license issued pursuant to this article may be suspended or revoked by the local licensing authority after a hearing for the following reasons: Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City ordinance, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Article XVIII Section 16 of the Colorado Constitution; "! �: � I i i I l i �! I � I V HEMMM 4. A violation of any of the provisions of this article; or 2100��� (b) Request for suspension or revocation, notice of hearing, burden. Any authorized City official may request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing • the suspension or revocation of a license. a Set a date and time on which to determine whether to revoke or suspend such license; b. Notify the licensee in writing of the date and time of the hearing at least ten (10) business days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing; ig d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1 . The nature and seriousness of the violation; 11 12 Sec. 11-418. Taxes. Each licensee shall collect and remit sales tax on all retail marijuana, paraphernalia, and other tangible personal property sold by the licensee at the retail marijuana establishment according • the provisions of chapter 22 of this code and any regulations issued pursuant thereto. (a) A retail marijuana store may open no earlier than 8:00 a.m. and shall close no later than 7:00 p.m. the same day. (b) A retail marijuana establishment may be open seven (7) days a week. misdemeanor offense for any person to violate any provision of this ,?rticle. Any person convicted of having violated any provision of this article shall be punished as set forth in section 1-5 of this code. (b) In addition to all other remedies available to the city under this code and • law, the operation • a retail marijuana establishment without a valid license issued pursuant to this article may be enjoined by the City in an action brought in a court • competent jurisdiction. Section 3. Section 26-123 of the Code, entitled Definitions, is hereby amended • the addition • the following terms: Retail mar#uana products manufacturer means the premises at which a person operates a business as described in Article XIII of Chapter 11 of this code and section 12-43.4-404, C.R.S. Retail marijuana testing facility means the premises at which a person operates a business as described in Article XIII of Chapter 11 of this code and section 12-43.4-405, C.R.S. IN Section 4. The Table of Uses for Commercial and Industrial Districts provided for in Section 26-204 of the Code is hereby amended as follows: -- Us I es Notes NC RC C-1 C-2 I-E Residential uses in See § 26-626 P P P P P commercial zones RETAIL MARIJUANA P P CULTIVATION FACILITY RETAIL MARIJUANA P P PRODUCTS MANUFACTURERS RETAIL MARIJUANA P P STORES RETAIL MARIJUANA P P TESTING FACILITY Rooming and P P boarding houses I I Section 7. Severability. Conflicting Ordinances Repgated. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8. Effective, Date. This Ordinance shall take effect upon adoption as provided by Section 5.11 of the Charter. I 14 A t M � g n S § ■ ■ � §z ����7kk \ \ }(�f/ / / �5s _ ! °'® ®�D% {�� f:��., 2§ !(§! • k2 §(i \i \�� ƒ) $ ; , /2! IV !| §($ c { •|° � 2 / / }7 - !•�¥ _ 3 = &'I == \ ��7( \w) J!g. � § §7 ƒ ,� ( �Il•! | | |�.! � - �� / 6 7 s ® f , - ; _ �7 ;■- �\ # - - 2 \)[� g E ■k {I £ £!!! / :G/ l laa:al2 7 .- _ $ $�3 l EM i I F F Karen Thaler, candidate for City Council, related how she had a code violation problem with one of her campaign signs because it was too large. The sign has been corrected and she thanked Officers Mosier and Coddington for giving her 48 hours to comply. APPRQVAL OF AGNDA Mayor DiTullio announced that Item 3 would be pulled from the agenda due to a need modify the contract. I Mayor DiTullio opened the public hearing, Council member DeMoft introduced Council Bill 13-2013. Clerk Shaver assigned Ordinance No. 1543 Staff presentation, Mr. Dahl explained that passage of the ordinance requires 5 votes of Council and after the hearing he would give them some options. Citizen comments: I= Mr, Dahl pointed out that the ordinance needs 5 votes to pass. Since two of the councilmembers who support this ordinance are absent tonight, the majority may want to consider either I)continuing the hearing to a later date certain, or 2) closing the hearing and continuing the matter for action only. 2, Resolution 37-2013 — approving Rules and Regulations for the purpose of managing certain Real Property for Recreational Gold Panning 11 1 1 1 � I I' I I I I MEN I Ig !�Jix Resolution 14 — approving a contract with the Colorado Department of Transportation for maintenance of Traffic Signals VAFomis\CAFtemplate Council Action Form September 23, 2013 Page 2 PRIOR ACTION: Council adopted Ordinance 1533, Series 2013, on March 11, 2013 enacting a temporary marijuana establishments and marijuana clubs. Council reviewed and discuss ed ordinance options with staff at the August 5, 2013 study session. Council adopted Council Bill 13-2013 on first reading on September 9, 2013. Staff noted a spelling error in subsection I I- 404(e) on page 7 which read "No marijuana clubs may operation or obtain a business license to operate within the city." That provision has been amended in the attached version of Council Bill 13-2013 to read "No marijuana clubs may operate or obtain business license to operate within the city." FINANCIAL IMPACT: The financial impact for the City is unknown. The City will begin receiving permit, license and/or operating fees for applications concerning retail marijuana establishments. As well, the City will receive sales tax for retail sales of marijuana and marijuana products within the City. At a study session on August 5, 2013, Council provided direction to staff concerning the extent to which the City should regulate retail marijuana establishments. At that study session, Council directed staff that it desired to regulate retail marijuana establishments in a manner that is similar • to how the City regulates medical marijuana businesses. This Ordinance has been drafted in accordance with those recommendations and state law. e on S am Council Action Form September 23, 2013 Page 4 "I move to table indefinitely Council Bill No. 13-2013 concerning licensing of retail marijuana establishments for the following reasons} Gerald E. Dahl, City Attorney Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 13-2013 2. Map depicting 1 /4mile separation between medical marijuana centers and C -1 and I-E zoning districts. Lauren Mikulak From: Christopher Price <CPrice@mdkriaw,com> Sent: Thursday, September 1, 2013 10:41 PM To: Lauren Mikulak Cc: Kenneth Johnstone Subject: Re: RMJ at Planning Commission Uar� MMMM��� iiiNg lii! r MARC* 01194 > CONFIDENTIALITY NOTICE: This e-mail contains business-confidential information, It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e-mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you, PPT for 412 CC SS 11/22/2013 PPT for 4/2 CC SS 1112212013 Mecommendation N City of ��Wheat 0 "ge' PLANNING COMMISSION 41.,Nwry DEVEL0PJ1WT LEGISLATIVE ITEM STAFF REPORT MEETING DATE: September 19, 2013 • 1. Retail Marijuana Stores 2. Retail Marijuana Cultivation Facilities ZOA- 13-01 / Retail Marijuana 3. Retail Marijuana Products Manufacturers 4. Retail Marijuana Testing Facilities CUg���t �--=JasivsLarAinance and reflect state law The Colorado Department of Revenue (DOR) is the State Licensing Authority for RMEs, and on July 1. 2013 they adopted temporary emergency rules to provide further detail regarding licensing requirements. The DOR Marijuana Enforcement Division is currently finalizing permanent enforcement rules, a process which is nearing completion. The timeline below summarizes state legislation and approaching deadlines related to implementation of Amendment 64. ZOO -13 -01 /Retail Marijuana Local Action Related March 11, 2013 to Amendment 64 The City adopts a moratorium preventing consideration of any retail marijuana licenses; this moratorium is set to expire oil November 1, 2013 or with approval of Council Bill 13-2013 August 5, 2013 City Council study session to consider policy decisions regarding regulations of retail marijuana in the City September 19,2013 Planning Commission public hearing on Council Bill 13-2013 September 23, 2013 City Council public hearing on Council Bill 13-2013 all Chaper 11 ProposedAmendinents The proposed ordinance largely affects Chapter I I of the City Code (Licenses, permits and miscellaneous business regulations) by adding Article XIII and establishing the City's licensing authority, operational standards, and separation requirements for Retail Marijuana Establishments. A sunimary of Chapter I I provisions is provided below: ZOA- 13-01 / Retail Marijuana for medical marijuana include restrictions on use of the words "marijuana" and "cannabis" in sign copy. In combination, the one district regulations of Chapter 26 and the separation requirements of Chapter I I result in an ordinance that permits marijuana establishments, but also ensures consistency with surrounding land uses. RECOMMENDED MOTION: Staff recommends that Planning Commission adopt the following motions: "I move to recommend approval of the proposed ordinance amending Chapter I I of the Wheat Ridge Code of Laws by adding a new Article X111 concerning retail marijuana and making certain amendments to Chapter 26 (Zoning and Development) in association therewith," E "I move to deny the proposed retail marijuana ordinance for the following reasons. I. Council Bill 13 -201; 2, Map depicting existing medical marijuana establishments ZOO-13-01 / Retail Marijuana 4 The proposed ordinance is available in electronic form on the City's official website, www.cLwheatrid -ve.cous, Legal Notices, Copies are also available in printed form in the Community Development Department, Published: Wheat Ridge Transcript, September 5, 2013 The following case shall be heard: Case No. ZOA-13-01: Amendments to Chapter 26, Zoning & Development Code, concerning retail marijuana regulations. Kim %laggoncr, Administrative Assistont Pre app Date Neighborhood Meeting hate app Na: Review Type Review Body Review Cate Disposition Comments Report First Reading w Y CC w,„ ..., ,.,. . � 9A9AZQi 3 .. .... .......... ..,.�, � �. .,.. # 3 '�, Public Hearing wr PCC 9A3A201 n:. } Case Disposition N D isposrtran date a., Conditions of approval ? W Notes "q., _.p.. ... ory .... ..... .. .a. ,... ...... .,, .. , .� , ". ;.. .. ,... . .,. s .. �. Status ;open Res # Ord # ,. Storage. Ken Johnstone, AICP Community Development Director Office Phone: 303-235-2844 Questiow At study session, we had discussed banning marijuana-related businesses not expressly permitted. Would this appropriate to add at the end of Sec. 11-403 where we outline the four types of licenses? I Answer: Yes. I have made the recommended change by adding a subsection (d) to Section 11-404. Questiom Sec. 11-407 indicates that an operating fee will be approved by CC by motion. Will that be decided on Sept 23 when the ordinance is reviewed? Answer', tb"oeratina fees to Jerry and Patrick. Question: Sec. 11-416.d requires a Y4-mile separation between RMJ and MMJ retail locations (unless collocated). This will effectively prevent new retail locations in the City because there appear to be very few eligible locations remaining, If this is the direction we go, would we also need to amend the MMJ code to state the converse—that new MMJ centers can't be within %-mile of an RMJ store? Alternatively, only subsection c could remain and each type (RMJ and MMJ) is only separated from its own type (one buffer map versus two), Does this make sense? Answer: Based on the map that Lauren provided, there are few locations within the City that would allow a medical marijuana center. My sense from the Council session was that the Council members were generally happy with the existing number #=*owhi4C.N� between all locations that sell marijuana. I would be surprised if Council would approve of a retail store existing directly adjacent to a medical marijuana center if the two outlets were not collocated. roll I , I !! i 11 �� I ; 1 1 1 01 are uniTorm. nowever, tainer Man MuTlywilut7t , WAr.WW" I will prepare a separate ordinance to amend the provisions in Section XVII concerning medical marijuana, Question: r A ril 21, 201 Answer: 1.1W111A.A1A ktrovisk%* Question: Sec. 11 -419 includes limited hours of operations. What are these based on? Answer: Council gave direction that they wanted retail marijuana to be regulated within the City in the same manner as medical marijuana. The Colorado Retail Marijuana Code does not place a limit on the hours of operation. The Colorado Medical Marijuana Code does limit hours of operation as described in C,R,& 12-43.3-901(4)(1). The hours in Section 11-419 meet those limitations for retail marijuana stores. Question: limitations ion private residential 1, , Vq wi, J'Ali rAnswer: In general, rather than have a single ordinance with amendments to multiple sections of the Code, I have prepared a separate ordinance to amend the general offenses provision concerning possession and use of marijuana, A copy of that ordinance is attached. Question'. =09m be a,�#irovision that mentions if an a&clicant has a criminal history for manufacturing or distributing controlled substances that they are not eligible for a license. Answer: This issue is covered in the Colorado Retail Marijuana Code at CRS 12-43.4- MU, Uw. �Please I L provisions are inadequate and need to be further addressed in the City's ordinance. Question: Should there be a section that requires the as well as a requirement to post certain signs that outline prohibited conduct for retail and medical marijuana stores, i.e. transactions violating Colorado Retail Marijuana laws, immediate notification to law enforcement of criminal activity, age requirements, Answer: Would you like a provision(s) included in the ordinance requiring specific signs that outline prohibited conduct for retail marijuana stores? Please let me know, and I will add sections covering those issues. The City does not currently requi special signage for medical marijuana establishments. I Question: Section 11-41 Appeals, mentions certain time requirements (10 days, 15 days, etc.). In other areas of the City Code of Laws, the term days is defined further by calendar or business days. Is there a need to state these are business or calendar days? Answer: Ken's email Question: In regards to Lauren's 3rd bullet discussion, I would suggest we modify the MMJ ordinance to indicate that new MMJ would also be subi-e—ct-to-a-1/o k-7hV4 intent from SS), I do also think it would be beneficial to note that the �%mile separation applies to locations inside and tutside of our jurisdiction. Answer: I made the change to the ordinance to include how the measurements will be made and that it will apply to locations inside and outside of the city limits. This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged, If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited, If you have received this e-mail in error, please notify me immediately by telephone or e-mail and destroy the original message without making a copy, Thank you. From: Lauren Mikulak [mailto:lmikulak@ci.wheatridge-co,usI Sent: Tuesday, August 27, 2013 10:23 AM To: Christopher Price; Patrick Goff; Kenneth Johnstone; Daniel Brennan Cc: Gerald Dahl Subiect: RE: Ordinance concerning retail marijuana licensing/zoning provisions in City of Wheat Ridge Chris, I've read through the draft code, and it looks good. I do have a few comments/questions: At study session, we had discussed banning marijuana-related businesses not expressly permitted. Would this be appropriate to add at the end of Sec. 11-403 where we outline the four types of licenses? Sec. 11-407 indicates that an operating fee will be approved by CC by motion. Will that be decided on Sept 23 when the ordinance is reviewed? Sec. 11 -419 includes limited hours of operations. What are these based on? Will we be including the municipal code the definitions for openly and publicly and the limitations on private residential cultivation? These were the "other issues" that we discussed at the August study session, = 1 III I III IIIIIIII liI Is III I 11 . 1gil , - - 6 Attached for your review and comment is a draft of the ordinance amending the Code of Laws to implement the licensing and zoning provisions for retail marijuana establishments. 4 As per the Council study session, the licensing provisions for retail marijuana are similar to the provisions for medical marijuana. TrU - 17 - 7uncit upon motion) - only authorizes cultivation for retail sale if the location for cultivation activities is adjacent and contiguous with a licensed retail store • retail products manufacturer, - imposes distance limitations between retail stores and medical marijuana centers of 3 % of a mile (unless collocated); Christopher Price cprice@mdkriaw.com<mailto:cprice@mcikrfaw.com> Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 ADO MUNICIPAL -- to • add a retail marijuana license? a COLORADO MUNICIPAL LEAGUE ^« * 416Z 'M OOSL 96W�i leOLIAA 1 40 ~ _�Wfit 2, E MM uRQaoe 0 A H L Kuco1- -ICNMEo2s - rcR Rr. NALIO LLP ATTORNLYS AT LA" MEMORANDUM TO: City Council THRU: Patrick Goff, City Manager FROM: Gerald E. Dahl, City Attorney Christopher Price CC: Ken Johnstone, Directory of Community Development Dan Brennan, Chief of Police DATE: July 26, 2013 RE: IMPLEMENTATION OF AMENDMENT 64 The citizens of Colorado adopted Amendment 64 during the November 6, 2012 election legalizing the purchase, retail sale, possession, growing, production, consumption and use of marijuana, marijuana infused products and paraphernalia for the use of marijuana. Amendment 64 includes certain deadlines for the adoption and implementation of its provisions. One of the first deadlines included in Amendment 64 required the General Assembly to adopt legislation implementing certain provisions of the Amendment. During its recent term, the General Assembly adopted House Bill 13 -1317 setting forth how the state will implement Amendment 64. Through this bill, the General Assembly established the Colorado Retail Marijuana Code creating a licensing infrastructure at the state level for "retail marijuana establishments" to engage in the production, growth and sale of marijuana and marijuana infused products. The four types of retail marijuana establishments ( "RME's ") that will be licensed at the state level include: - Retail Marijuana Store: This is a license for a retail marijuana business. - Retail Marijuana Cultivation Facility: This is a license for a location in which the licensee is authorized to grow and cultivate marijuana. - Retail Marijuana Products Manufacturer: This is a license for a business that rn manufacturers a product containing or infused with marijuana. - Retail Marijuana Testing Facility: This is a license for a business that will test the THC levels of products and marijuana sold at retail. On July 1, 2013, the Department of Revenue, the state licensing authority for RME's, adopted emergency rules that provide further detail as to the implementation of Amendment 64 and Retail Marijuana Code. The state will begin accepting applications for RME licenses Upda -Nuisance and Code Violations Code Enforcement Activity l /l /08 to 6/30/13 Ju 18, 013 Page Crimi I C rges Indicates the number of criminal charges that have been filed against property that has failed to correct code issues through the Administrative Model Pro ss Since 2008, no code violations have resulted in criminal c . to a citizen. Fines Collected ates the amount of fines collected by the cit year for 1 ", 2" , and 3 Citations. fines can be collected through the asse nt of property tax lien if citizens fail to t Abatement Fees Collected ater th amount of fees col ed by the city to recover the cost of court ordered Abat ents. ese a collected through assessment of property taxes if �feesca citizens ' to pay. The Community Services Team has Wen a key p icipa in efforts to address quality of life issues throughout the City. Me rs of this team are gag with the Community Development Department, W at Ridge 2020, LiveWell heat *dge, the Parks and Recreation Department, the Colorado tvision of Parks and Wildlife an thers ' education and enforcement strategie make the Wheat Ridge community unity attra ve and safer. Please contact ' f' Dan Brennan, Division Chief Jim Lorentz or Com unity ices Team Supervisor y McKenna with any questions you have regarding nuisanc code a ucation and enforc e starting October 1, 2013. Other than RME Testing Facilities, only those businesses that hold a state Medical Marijuana license and /or had submitted an application for such license by December 10, 2012 will be permitted to apply for an RME license on that date. If licensed by the state, RME's will commence operating on January 1, 2014. At that time, the state will begin accepting applications to operate an RME from non - Medical Marijuana license holders. Following adoption of Amendment 64, the City adopted a moratorium preventing the acceptance, consideration and processing of any licenses or other City applications concerning any business related to retail marijuana and marijuana clubs. The moratorium expires on November 1, 2013. Because the moratorium is expiring and to prepare for state implementation of Amendment 64, Council will need to make certain policy decisions concerning how to regulate retail marijuana within the City. The following issues can be used to help guide those decisions: 1. Will the City ban all RME's? i-t,o ' a, �l The Council can act by ordinance to ban RME's. To the extent Council wishes to ban all RME's, the remaining questions are unnecessary. The Council can also refer a measure to ban all RME's to the voters. The earliest a referred measure could be placed on the ballot is November 2014. clt� 4. Will the City adopt buffer zones for RME's or limit the number permitted within the City? C SG'M"t ' e rr, ,,*e AdIA — lr 110 (1, nt�{ The City is permitted to limit the number of RME's allowed to operate in the City and may adopt buffer zones or spacing limitations concerning those facilities. Currently, the City prohibits medical marijuana centers from being located within ' /< of a mile of another licensed center. In addition, the City and the Medical Marijuana Code prohibit medical marijuana from being sold within 1000 feet of school. The same or similar approach for medical marijuana can be used for RME's. It is important to note that the Retail 2 2. Which of the four distinct type of RME's will be allowed to exist? "/ ° w-/ r t,(,. t +r-6 t" 'T � �*- If Council does not ban all RME's, then it should determine if it will ban certain types of J11t ► I I� �� RME's. For example, the Retail Marijuana Code authorizes stand -alone cultivation facilities. This is different than how businesses operate under the Medical Marijuana Code which requires a vertically integrated business model, i.e., seed to sale. The Council could ban stand -alone RME cultivation facilities from operating within the City. fie Lve�o 3. In what zone districts will RME's be permitted to operate? The next question is where to allow approved uses. As a guide only, the City permits medical marijuana centers, cultivation operations and infused products operations in C -1 (Commercial) and I (Industrial) zones. The City has four medical marijuana licensees in operation within the City and a single medical marijuana licensee that has been approved at the state and local level but has yet to commence operations. The attached map identifies the location of the existing medical marijuana licensees (in yellow). The same or similar approach for medical marijuana can be used for RME's. Staff recommends that if Council approves RME's in the City that Council then adopt the zoning approach currently in place for medical marijuana establishments. 4. Will the City adopt buffer zones for RME's or limit the number permitted within the City? C SG'M"t ' e rr, ,,*e AdIA — lr 110 (1, nt�{ The City is permitted to limit the number of RME's allowed to operate in the City and may adopt buffer zones or spacing limitations concerning those facilities. Currently, the City prohibits medical marijuana centers from being located within ' /< of a mile of another licensed center. In addition, the City and the Medical Marijuana Code prohibit medical marijuana from being sold within 1000 feet of school. The same or similar approach for medical marijuana can be used for RME's. It is important to note that the Retail 2 Marijuana Code does not address distance limitations between retail marijuana outlets and schools. Council would have to adopt such a limitation for it to apply within the City. For an example of how the current buffer zone works please review the attached map. The circle around each medical marijuana licensee (shown in yellow) shows the '/< mile buffer between licensed medical marijuana centers. The City has implemented the 3 /. mile buffer to apply to licensed centers regardless of whether the center is located within p City limits. For example, if a licensed center is located in Edgewater and within '/< of a mile of a C -1 zone location, the City would not approve an application for that C -1 location. 5. Will the City allow an RME to collocate with an existing med ical marijuana licensee? During the initial phase -in period, only a current medical marijuana licensee may be allowed to convert to an RME or add an RME to their current operations, i.e. to collocate. Existing licensees may only add an RME to their current operations if allowed by the City. 6. Will the City adopt specific licensing requirements for RME's? Council must determine if it wishes to engage in City -level licensing. The state has a robust licensing process that includes the Retail Marijuana Code and related regulations. Amendment 64 contemplates a single licensing entity but authorizes municipalities to adopt time place and manner restrictions (security, lighting, hours of operation, odor, etc.). House Bill 13 -1317 specifically authorizes municipalities to adopt licensing provisions that are no less stringent than state law. The City is not required to adopt specific licensing provisions. Options include: L City approval of state license following review of compliance with zoning q and distance limitations, or ii. Formal licensing to enforce "time, place and manner" restrictions in the City. The City can also adopt regulations that mirror the state regulations. If the City adopts formal licensing provisions it will likely have to adopt notice and hearing provisions that mirror the State Administrative Procedures Act as required by Amendment 64. 7. Time Place & Manner Regulations for RME's: j If the Council decides to provide for local licensing, it will be necessary to adopt local regulations on time, place and manner, as referenced above. 8. Who will be named as the "local licensing authority ?" If RME's are not banned, the Council would have to name a local licensing authority. Under House Bill 13 -1317, the Council acts as the default local licensing authority. The local licensing authority for medical marijuana is the City's Tax and Licensing Division. Staff would recommend that the same Division be named as the City's local licensing authority for RME's. 9. What are the appropriate amount of operating fees the City may charge and collect? Amendment 64 provides the City with a right to charge and collect operating fees. An operating fee is a fee based on costs incurred by the City for inspection, administration, w (sand enforcement of RME's. If the City adopts licensing requirements, the licensing fee V.v will be set and collected by the state with a portion thereof remitted to the Cit....... � u V 10. Whether to allow retail mariivana businesses to exist if the state defaults on its responsibilities under Amendment 64: Amendment 64 sets up a default situation in which the local entity becomes the primary f licensing entity if the state fails to satisfy its licensing requirements in Amendment 64. The City may want to adopt a provision that banning operations within the City if the state fails to act as required. 11. Other Issues: - How to define open and public use? Amendment 64 does not legalize the open and public use of marijuana. The General Assembly failed to adopt provisions that would address this issue. Because recreational marijuana is permitted for adults, the Council will need to decide if this activity should be prohibited in various public places. The following definitions should be considered by Council: "Open and public" means a place open to the general public, which includes a place to which the public or a substantial number of the public has access without restriction including but not limited to highways, transportation facilities, places of amusement, parks, playgrounds, and the common areas of public buildings and facilities that are generally open or accessible to members of the public without restriction. "Openly" means not protected from unaided observation lawfully made from outside its perimeter not involving physical intrusion. "Publicly" means an area that is open to general access without restriction. - Whether to limit personal growing within a residence: The Police Department and other City departments have had to investigate the use of property for the growing /cultivation of marijuana. Many of the locations are residences. In some instances, no one lives in the residence and it is used solely as a cultivation site. Council should consider whether to adopt provisions that address the following issues: Whether to limit the number of plants per square foot of living structure: I, 1 - " S a] - f Z s-: Vl, Requirements that cultivators live on the premises where marijuana is being cultivated: 4 11 a' 11 7 Dersons be prohibited from growing on -site unless the persons are primary care - givers: Z� iv. That cultivation be prohibited except within a residence or in a structure ! on property that is the primary residence of the cultivator. This �� requirement would not apply to licensed RME's and licensed medical V marijuana cultivation facilities: Whether to ban other business models not contemplated by Amendment 64? Council should consider whether to ban marijuana business models that were not overtly authorized by Amendment 64, e.g., mobile delivery trucks, cooperative growing clubs, smoke clubs, etc. Some of these models have been addressed in the state regulations. However, Council may want to consider adopting a provision that prohibits all marijuana businesses not specifically permitted in the City. e V1 fi U i M CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER _SMES_ Council Bill No. 06 Ordinance No. 1533 Series 2013 TITLE: AN ORDINANCE IMPOSING A TEMPORARY MORATORIUM ON TH SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL APPLICATIONS FOR A PERMIT OR LICENSE FOR ANY MARIJUANIJ- ESTABLISHMENT OR MARIJUANA CLUB AND DECLARING A EMERGENCY WHEREAS, the City of Wheat Ridge is a home rule municipality operating under a charter adopted pursuant to Article XX of the Colorado Constitution and vested with the authority by that article and the Colorado Revised Statutes to adopt ordinances for the regulation of land use and the protection of the public health, safety and welfare; and WHEREAS, on November 6, 2012, the voters of the State of Colorado approved Amendment 64 to the Colorado Constitution ("Amendment 654") regarding the personal use and regulation of marijuana', and WHEREAS, Amendment 64 permits local governments to prohibit marijuana 1�&stablishments at any time by ordinance, or by election on and after November 4, 2014, and WHEREAS, relying on the authority in Amendment 64 for individual adult consumption of one ounce or less of marijuana, establishments (*'marijuana clubs") have been created in other municipalities for the purpose of allowing members or guests to consume marijuana or marijuana products on site; and WHEREAS, the City Council has been made aware that staff has received inquiries from persons that are interested in opening and operating such clubs in the City; and WHEREAS, if marijuana establishments or marijuana clubs were allowed to be established and operate in the City without appropriate regulation, they may be located in areas or under conditions that would conflict with the City's land use code, and may be inconsistent with surrounding uses or otherwise be detrimental to the public health, safety and welfare', and . 0 wkz�� permits and licenses concerning the operation o marijuana e I Fla clubs is reasonable and will allow the City to develop appropriate policies and, if needed, regulations concerning the same. 111 T r1w UT "M Section I The foregoing findings are incorporated herein by reference. Section 3. Duration. The moratorium imposed by this ordinance shaW commence as of the date of adoption of this ordinance, and shall expire ninety (90) days thereafter as permitted by Charter Section 5,15, unless sooner extended or repeated. Section 4. SLaff to Investiga,te.,and Prepare ProRoseg Regulations Befo the expiration of the moratorium imposed by this ordinance, City staff shall investigat review and analyze potential new City regulations for marijuana establishme t] marijuana clubs, and/or the prohibition thereof. Such investigation, review and analys 111pliq1111111 11 '" ml INTRODUCED, READ, AND ADOPTED and ordered published by a vote of to _g__ on this 1114 04 of 2013, SIGNED by the Mayor o 2013. A I d as, to Form, erald E. hl, Attomey Approved on s#Vle readkV as ah wrergency ordioame pursuarwt to Section ChAderon x4roh 1, 1,, 2013 Publisfied in full on --ftuXA&,2QU- Whem kidge Tra, �4 e4i(- :Z "JAI TO: Mayor and City Council FROM: Patrick Goff, City Manager-Db DATE: February 26, 2013 On January 28, 2013, City Council adopted an ordinance amending Sections 16-131 and 16-133 of the Wheat Ridge Code of Laws so that they are consistent with state law as it pertains to the possession of marijuana and the necessary paraphernalia to ingest or r.moke the same. Attached is a memorandum from the City Attorney's Office summarizing the current status of localand state regulation of retail mari . uana. The memorandum includes several U options for the Council to consider concerning the regulation of retail marijuana sales in the City of Wheat Ridge. Staff Rec2MMIndaft Staff recommends that Council enact a moratorium on retail marijuana sales to allow time for the Colorado Department of Revenue to develop a licensing and regulatory program. Attachments: 4 subsequent to the passW of Amendment 64 to the Colorado Constitution. Amendment 64 was proclaimed by Ow Governor as effective on December 6, 2012. Aftaeftmoftt I Private !Lmarijuana clubs Now that individual adult use of marijuana is legal under Colorado law, enterprising persons some cities have formed various kinds of private clubs, for the purpose of exercising tho-1 individual rights together. This is an issue that the Council may want to address now, as t potential for it to occur in the City currently exists. No Action: State licenses for retail marijuana can be issued starting in July 2013. Private marijuana clubs could obtain business licenses if permitted in the relevant zoning district Moratorium: The Council could enact a moratorium on retail marijuana sales. That moratorium could include a moratorium on private "marijuana clubs."' 21_velop logal ESgUlations: If the Council wishes to do this, those regulations should be developed prior to July of 2013, and certainly no later than October of 2013. These regulations will concern "zoning7' issues: tirne, place, manner and number of estaAlishments. * AddrgssgrJvaLe marfigang cl!Lbs: Options for Council action includa No action-, allow private marijuana clubs wherever other private clubs permitted Prohibit such uses entirely as a zoning matter Amend the zoning code ► allow these clubs only in specific zones Ticket uses under the Colorado Clean Indoor Act I wa s • • Attachment 4 • r � x r rr • AN • rr lam MW4 w. r 4r w w w w : • .. .. �. +IM Y r� ��'� �,1� `���� .. .. �. +IM Y r�