Planning and Zoning Commission

Jim Harris, Chairman Lake Havasu City Mychal Gorden, Police Facility Vice-Chairman 2360 McCulloch Blvd North Don Bergen Lake Havasu City, Arizona Doug Hardy 86403 Dan McGowan www.lhcaz.gov Chad Nelson Lucas Still Planning and Zoning Commission Regular Meeting Suzannah Ballard, Alternate Sam Levin, Alternate Matthew Mitchell, Alternate Minutes - Final Wednesday, November 18, 2020 9:00 AM 1. CALL TO ORDER Chairman Harris called the meeting to order at 9:02 a.m. 2. PLEDGE OF ALLEGIANCE Chairman Harris led the Pledge of Allegiance. 3. ROLL CALL Present: 6- Jim Harris, Donald Bergen, Dan McGowan, Chad Nelson, Suzannah Ballard and Sam Levin Absent: 4- Lucas Still, Mychal Gorden, Doug Hardy and Matthew Mitchell Alternate Members Ballard and Levin were seated. 5. MINUTES Mr. Bergen made a motion to approve the minutes of the last meeting, seconded by Mr. Nelson, and carried by the following vote: Aye: 6 - Harris, Bergen, McGowan, Nelson, Ballard and Levin Absent: 4 - Still, Gorden, Hardy and Mitchell Approval of Regular Meeting Minutes from November 4, 2020. 6. CORRESPONDENCE AND ANNOUNCEMENTS None. 7. PUBLIC HEARING ID 20-2584 Request for a Text Amendment to Title 14, Zoning (Development Code) to Renumber and Modify Section 14.03.03 C17 (Medical Marijuana Business) to Change the Title to “Marijuana Business,” Add Subsection (b) “Marijuana Establishments and Marijuana Testing Facilities,” and Add Definitions to Section 14.06.03 (Definitions) Mr. Morris thanked the Chairman and stated Mrs. Garry would like to provide a brief overview of the Smart Safe Arizona Act, recent ballot that was approved by the State. Lake Havasu City Page 1 Printed on 1/26/2021 Planning and Zoning Commission Minutes - Final November 18, 2020 Mrs. Garry stated the Smart Safe Arizona Act will go into effect once certified by the Governor. There is no specific time for certification; however, generally occurs around November 30th. Mrs. Garry stated sometime in the upcoming months the measure will go into place and at that time marijuana will be able to be used in Arizona legally. It will not be able to be sold until the licenses have been issued. She highlighted the following Smart Safe Act key points: • Legalizes sale and adult use of marijuana within the State of Arizona. • License is necessary for marijuana to be sold. • State creates rules to implement and enforce the Act. (similar to Medical Marijuana). • Existing medical marijuana dispensary businesses will have first opportunity to apply for dual license. After that- other applications will be allowed to be submitted. • Focus for today is that the City, under the Act, may regulate as to the reasonable zoning regulations that limit the use of land for marijuana establishments and marijuana testing facilities. • City cannot enact any regulation that is more restrictive than a comparable regulation that applies to nonprofit medical marijuana dispensaries. Mrs. Garry stated Staff is recommending that we adopt regulations that mirror what we do for the medical marijuana dispensaries. Mrs. Garry also pointed out that under the Act, marijuana and marijuana products are a tangible personal property and they are subject to transaction privilege tax; however, the State and City cannot levy or collect any additional taxes of any kind on the sale of marijuana or marijuana products we also cannot levy or collect any fees or assessments of any kind on marijuana or marijuana related activities. Mr. Morris stated that, with this item, Staff is asking for a new code section remunerating the existing medical regulations and summarized the following: • The new code section has the same land use regulations used for medical marijuana, adding new section titled Recreational Marijuana Business which includes Recreational Marijuana Businesses and Marijuana Testing Facilities. • Hours and regulations were provided. • Marijuana Establishments and Marijuana Testing Facilities new definitions provided. • Current Use Table shown- currently allowed in C2 and LI use areas. • Not proposing changes to Medical Marijuana Cultivation or Dispensary or Infusion Facility. • Current C2 and LI locations provided. Mr. Nelson asked for the difference where you can cultivate and grow marijuana as opposed to where you can buy/sell it. Mr. Morris stated Medical Marijuana Cultivation Facilities is along the permitted uses. It is allowed in AP (Agricultural) District. There is no change proposed for cultivation. Lake Havasu City Page 2 Printed on 1/26/2021 Planning and Zoning Commission Minutes - Final November 18, 2020 Mr. Nelson also asked what type of a license will be required for the sale of marijuana products. Mrs. Garry stated the new Act will specifically cover marijuana establishments and medical marijuana testing facilities. They do allow single offsite cultivation facilities but they cannot transfer or be sold to consumers. A State license will be required to have a marijuana establishment. Chairman Harris asked why now as opposed to waiting until this digested a little further, and are there other municipalities that are already enacting this type of regulation. Mrs. Garry stated some municipalities have started a couple of months ago. Reason as to why now is because the Act was passed. Staff needs to find out what direction the community wants to go and get those regulations in place before this Commission and City Council, so they can go into place before licenses start being issued. Chairman Harris asked if the item is voted on today, what is the potential of the item being modified in the future. Mrs. Garry stated that at this point in time, Staff is asking to mirror the Medical Marijuana section as this has worked well in the community; however, if in the future, the desire of the community is to modify this item, it can be brought back to the Commission and to City Council. Mr. Levin asked what the purpose is for the 500-foot separation from residential properties. Mrs. Garry stated the City is mirroring regulations for Medical Marijuana and those are the determined regulations, which have been appropriate. Chairman Harris opened the Public Hearing, Jack Dunn, commended the City for being proactive and implementing rules for recreational marijuana; however, he requested the Commission postpone approving these rules at this time, as State has not written their rules yet. Mr. Dunn feels the need for more conversations around this topic. Not many locations in town that allow these licenses to open. Understands the City not wanting a site like this on every corner, as seen on other recreational states. Believes there is wiggle room between strict guidelines for medical marijuana program and having one on every corner. Limited number of licenses issued in the State. Approximately 130-160 licenses will be issued all over state. The Act states there will only be 26 additional licenses issued on top of existing 2 licenses. Additional 16% tax, similar to cigarettes and alcohol- to fund public safety, community college, infrastructure, public health, and community programs. Tucking away hard to find industrial areas could hinder this additional funding. Mr. Dunn believes that removing some of the restrictions and taking some extra time to take a closer look where these licenses could be located in the community would be valuable to our community in the long run. Chairman Harris asked Mr. Dunn if he understands that this item could be modified in the future, to which Mr. Dunn affirmed. Lake Havasu City Page 3 Printed on 1/26/2021 Planning and Zoning Commission Minutes - Final November 18, 2020 Chairman Harris closed the Public Hearing. Mr. Morris stated that based on the findings, the Development Review Committee recommends that land use action No. 20-2584, amending Title 14, Zoning (Development Code) to renumber and modify Section 14.03.03 C17 (Medical Marijuana Business), be forwarded to the City Council for approval. Mrs. Garry noted that the audience requested the item be postponed based on the State having to make rules, which is true; however, those rules do not include anything that has to do with the land use regulation aspect. The rules that they will promulgate has to do with licensing, processing of those licenses, security, tracking, testing, labeling, potency and those types of things. It is very clear in the Act as to what the City can and cannot do with respect to the land use, so there is no reason for the Commission to wait until those rules are in place for the City to take action with respect for the land use actions. The Commission and Staff had a discussion regarding the use of marijuana in a residential environment. Mr. Morris stated the misuse of this item would be regulated by law enforcement, as no land use modifications are being proposed to residential facilities. Mrs. Garry added that the State will regulate the specifics for recreational marijuana. Mr. Nelson made a motion to postpone the item until a later date, seconded by Mr. McGowan. The item failed by the following vote: Aye: 2 - McGowan and Nelson Nay: 4 - Harris, Bergen, Ballard and Levin Absent: 4 - Still, Gorden, Hardy and Mitchell Mr. Levin made a motion to recommend approval to City Council, land use action 20-2584, amending Title 14, Zoning (Development Code) to renumber and modify Section 14.03.03 C17 (Medical Marijuana Business). The motion was seconded by Ms. Ballard, and carried by the following vote: Aye: 5 - Harris, Bergen, McGowan, Ballard and Levin Nay: 1 - Nelson Absent: 4 - Still, Gorden, Hardy and Mitchell 8. CALL TO PUBLIC None. 9. FUTURE MEETING The meeting of December 2, 2020 has been canceled. The next regular scheduled meeting is December 16, 2020. Lake Havasu City Page 4 Printed on 1/26/2021 Planning and Zoning Commission Minutes - Final November 18, 2020 10. ADJOURNMENT Chairman Harris adjourned the meeting at 10:00 a.m. _________________________________________ Jim Harris, Chairman _________________________________________ Maria Hart, Recording Secretary Lake Havasu City Page 5 Printed on 1/26/2021