HomeMy WebLinkAboutZOA-13-01City Council Minutes October 14, 2013
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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.
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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.
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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
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ITEM NO:
DATE: October 14, 2013
REQUEST FOR CITY COUNCIL ACTION
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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
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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.
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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
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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);
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(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:
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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.
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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:
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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.
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(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.
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(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.
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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;
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(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
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(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;
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4. A violation of any of the provisions of this article; or
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(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;
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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
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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:
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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
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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
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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
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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
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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
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are uniTorm. nowever, tainer Man MuTlywilut7t
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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?
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COLORADO MUNICIPAL LEAGUE
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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
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