Title
PLN17-0012; Consideration of a Conditional Use Permit for a proposed 7,704± square-foot medical cannabis dispensary within an existing commercial and industrial building at 3089 Teagarden Street zoned IG - Industrial General District. A medical cannabis dispensary is a conditionally permitted use on the subject property. Alameda County Assessor’s Parcel Number 77B-1201-027-15, -16; Davis Street Wellness Center Inc. (applicant) and The Davis Street Community Center Inc. (property owner).
Staffreport
SUMMARY AND RECOMMENDATIONS
The applicant (Davis Street Wellness Center) and property owner (The Davis Street Community Center) propose a 7,704± square foot medical cannabis dispensary within an existing 22,512 square-foot multi-tenant commercial-industrial building at 3089 Teagarden Street, currently occupied by the Davis Street Family Resource Center (DSFRC), a non-profit social services provider. San Leandro Zoning Code Section 2-706.B.16 requires approval of a Conditional Use Permit prior to establishment of a Medical Cannabis Dispensary in the IG Industrial General District.
The Board of Zoning Adjustments held a public hearing regarding the proposed medical cannabis dispensary on October 5, 2017. At the public hearing, the Board considered the proposed medical cannabis dispensary application by Davis Street Wellness Center, the applicant’s statements, the staff report, public comments, and all other testimony and evidence presented. Following deliberations, the Board of Zoning Adjustments directed staff to draft a revised resolution, findings of fact for approval and to prepare conditions of approval. The Board continued the public hearing for consideration to its November 2, 2017 regular meeting.
In accord with the Board’s motion, staff prepared Resolution 17-002 with the attached Findings of Fact to approve Conditional Use Permit PLN17-0012 subject to the recommended Conditions of Approval. This includes a finding that PLN17-0012 is categorically exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines, Article 19, Section 15301 (a) as interior and exterior alterations to an Existing Facility. The Board’s decision may be appealed to the City Council within 15 days in accordance with Article 28 of the San Leandro Zoning Code.
APPLICANT’S SUPPORTING STATEMENT
See Attached Applicant Statement.
RELATIONSHIP TO SURROUNDING AREA
The subject site at 3089 Teagarden Street consists of a tenant space within a multi-tenant commercial-industrial building located on the south side of Teagarden Street, one parcel west of Alvarado Street. Each tenant within the existing building has a separate street address ranging from 3073 to 3089 Teagarden Street. All of the tenants within the building share a common parking lot. The subject property is zoned IG Industrial General District, as are the immediate neighboring properties to the north, south, and east. The adjacent property to the west is zoned IP Industrial Park District. Neighboring properties to the east and west primarily consist of multi-tenant commercial-industrial buildings that support uses including building materials sales & installation, light manufacturing, warehouses, wholesale businesses, trucking terminals, furniture sales, and a boxing gym/fitness center. The neighboring properties to the north and south are freight trucking terminals with parcel shipping, processing and warehousing. An apprenticeship training center is located further north near the corner of Alvarado and Teagarden Street.
BACKGROUND
The Board of Zoning Adjustments held a public hearing regarding the proposed medical cannabis dispensary on October 5, 2017. At the hearing, the Board considered the proposed medical cannabis dispensary application by Davis Street Wellness Center, the applicant’s statements, the staff report, public comments, and all other testimony and evidence presented. By a 6-1 vote, the Board acted to continue the public hearing to November 2, 2017 and directed staff to draft a revised resolution, findings of fact and to prepare conditions of approval. Additional background information can be found in the attached October 5, 2017 BZA Staff Report.
The City Council initially awarded the applicant an operational permit for a medical cannabis dispensary on July 18, 2016. At that time, the location of the medical cannabis dispensary had not yet been finalized. On October 16, 2017, the City Council granted the applicant an additional time extension through the end of January 2018 to complete this Conditional Use Permit process.
DETAILS OF THE PROPOSAL
Davis Street Wellness Center is a medical cannabis and infused-product distribution clinic (medical cannabis dispensary) proposing to operate a new dispensary at 3089 Teagarden Street. The proposed medical cannabis dispensary would be located adjacent to its community benefits partner, the Davis Street Family Resource Center. According to the applicant statement, the proximity between the Davis Street Wellness Center and the Davis Street Family Resource Center would enable the Davis Street Wellness Center “to seamlessly execute our vision of creating a welcoming, respectful, and clinical experience.” A goal of the Davis Street Wellness Center from the applicant statement is “to ensure sick patients who are poor and disenfranchised have access to a safe clinical environment and because it is adjacent to a social service agency, will also benefit from services that will help them improve their health outcomes.”
Davis Street Wellness Center proposes to occupy approximately 7,704 square feet of interior tenant space within an existing approximately 22,512 square-foot building, currently occupied by the Davis Street Family Resource Center, a social services provider. Davis Street Family Resource Center is the primary building occupant; it owns or leases approximately 55% of the building. Of the 7,704 square feet of space, approximately 3,958 square feet would be used as retail space for the dispensary; 2,727 square feet for office area; and 1,020 square feet for storage. The cannabis and cannabis products would be sourced from local vendors within the Davis Street Wellness Center membership collective, and would be exchanged on-site. Davis Street Wellness Center would be open seven days a week from 9:00 a.m. to 8:00 p.m.
Davis Street Wellness Center’s main point of entry at the subject site would be on the east side of the building, adjacent to the shared driveway. Overall, the multi-tenant site has proposed 105 shared vehicle parking spaces with 5 bicycle parking spaces. Minimal structural changes are proposed to the building exterior. Improvements proposed for the site include: nominal landscaping improvements; restriping of the parking spaces; a bicycle parking rack; modifying a truck loading dock; new exterior floodlights; exterior wall signage; and onsite security.
Davis Street Wellness Center anticipates 25-30 patients per day in the initial 6-12 months of operations. Patient visits are expected to grow gradually over a two-year period until reaching an average of 250 patient visits per day. Davis Street Wellness Center expects that patient visits will be busiest on the weekends and in the evenings. The applicant has prepared a detailed operational and security plan (attached) and has stated that the on-site use of medical cannabis and loitering would not be allowed on the premises.
Additional information regarding the project proposal can be found in the attached October 5, 2017 BZA Staff Report.
ANALYSIS
A medical marijuana dispensary is a conditionally permitted use within the IG Industrial General Zoning District. Uses are conditionally permitted whenever the Board of Zoning Adjustments has deemed that they would be compatible in a subject district through conditions of approval that allow such use to operate harmoniously with the surrounding area. It is in the City’s interest to ensure that the proposed medical cannabis dispensary is responsibly and securely established in accord with the City’s codes and policies.
Following the Board’s direction from October 5, 2017, staff has prepared recommended Conditions of Approval for the proposed medical cannabis dispensary. Staff has included conditions to memorialize those items that the Board of Zoning Adjustments and the Applicant discussed and agreed upon during the October 5, 2017 public hearing. The recommended conditions include the following:
• Applicant shall obtain the necessary permits to operate the medical cannabis dispensary in the City of San Leandro, including a San Leandro Business License and any necessary permits required under State law or regulations.
• New security fencing shall be provided along the side and rear property lines adjacent to the parking lot. Existing fencing along the perimeter shall be removed and replaced with wrought iron, tubular steel or aluminum, or a similar fencing material approved by the Zoning Enforcement Official, constructed a minimum 6 feet in height. The applicant and property owner shall work with adjacent businesses and property owners to close fencing gaps along the side and rear of the shared parking lot.
• High Resolution Cameras shall be placed on the exterior to monitor the entire building and Security Systems shall cover the entire building.
• Additional Parking Lot Monitors and/or Security Guards shall be provided to assist and ensure that pedestrians have a safe path of travel during delivery and loading activities in the shared driveway and parking lot.
• Property owner shall not allow businesses to store products, pallets, and containers in the shared parking lot and in the required off-street parking spaces. Large delivery vehicles shall be prohibited from parking in marked spaces.
• Monitors and/or Security Guards shall be provided to walk the surrounding area and neighborhood to provide community based security to prevent misuse of medical cannabis products in the immediate and neighboring areas.
• Applicant’s Membership Agreement shall include a provision that prohibits medical cannabis use in the shared parking lot and in the public right-of-way in the immediate and surrounding neighborhoods.
• Davis Street Family Resource Center shall use the driveway at 3073 Teagarden Street for deliveries related to its operations.
• Davis Street Family Resource Center shall renew expired leases for 3077 and 3079 Teagarden Street and obtain all required permits for the proposed tenant improvement work, which is required for the off-street parking requirement to be met and in compliance.
• The outstanding balance of a Community Development Block Grant loan for $500,000 between the City and the Davis Street Family Resource Center to assist the Center with the purchase of the building at 3081 Teagarden Street, shall be repaid in full by a date certain or prior to issuance of any building permits, whichever occurs first. If repayment of balance is not made in full then building permits will not be issued.
With the incorporation of the recommended Conditions of Approval and adherence to the California Health and Safety Code <http://www.qcode.us/codes/othercode.php?state=ca&code=heasaf> regulations, California Attorney General Guidelines, and San Leandro Municipal Code, the revised resolution and findings before the Board of Zoning Adjustments state that the use will not be detrimental to the public health, safety or welfare of persons residing or working in or adjacent to the area.
GENERAL PLAN CONFORMITY
The draft resolution and findings before the Board of Zoning Adjustments state that the operation of and conditions of approval for the proposed medical cannabis dispensary at 3089 Teagarden Street will be consistent with established General Plan policies. The subject property is designated Light Industrial in the City’s General Plan Land Use Diagram.
Chapter 3 of the General Plan states that:
“Light Industrial areas may contain wholesale activities, distribution facilities, research and development or e-commerce uses, business services, technology, and manufacturing operations which produce minimal off-site impacts. Campus-style industrial parks and professional offices also are permitted. A limited range of commercial uses also is permitted in these areas.”
The proposed dispensary has features of a pharmacy and retail store which are considered commercial uses. Any potential impacts and conflicts with the properties or improvements in the area will be mitigated through the recommended Conditions of Approval. The revised findings for consideration before the Board of Zoning Adjustment show that the proposed medical marijuana dispensary at this site will conform to the following General Plan policies: Policy LU-7.2 Adaptive Reuse; Policy LU-7.3 Zoning Flexibility; and Policy LU-8.2 Aesthetics.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS
In 2010, the San Leandro City Council authorized a $500,000 loan to the Davis Street Family Resource Center using federal Community Development Block Grant (CDBG) funds to enable the purchase of the 3081 Teagarden Street property, a portion of which is now proposed for use as the cannabis dispensary. The loan was structured such that it would be forgiven by $25,000 per year over a 20-year period, provided that there was no default or breach of the loan agreement by Davis Street Family Resource Center during that period of time. The adopted loan agreement, which was fully executed and signed by the City as well as the Davis Street Family Resource Center, contained various requirements and covenants, some of which placed restrictions on the use of the property. Included in those covenants was a requirement that the property remain in compliance with all federal laws applicable to the property.
Because the Davis Street Family Resource Center utilized a loan from the City of San Leandro using federal funding to finance the purchase of the 3081 Teagarden Street property, it is the City’s opinion that the Davis Street Family Resource Center may not legally utilize any portion of the property as a cannabis dispensary without first repaying the outstanding loan balance and all related payments. As such, a recommended condition of approval has been included that mandates repayment of the outstanding balance of the loan and all related payments prior to either January 31, 2018 or issuance of any building permits for the dispensary, whichever comes first. If repayment is not made then permits will not be issued to the Davis Street Wellness Center.
PUBLIC OUTREACH
This item received noticing for the continued November 2, 2017 Board of Zoning Adjustments hearing, including a legal advertisement in the East Bay Times Daily Review newspaper, the posting of notices at City Hall and on the property, and mailing notification to business and property owners within 500 feet of the subject property. Public comments received by email and mail prior to the publishing of this packet are attached.
ENVIRONMENTAL REVIEW
The Board of Zoning Adjustments finds that this item (PLN17-0012) is categorically exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines, Article 19, Section 15301 (a) as interior and exterior alterations to an Existing Facility.
RECOMMENDATION
In accord with prior direction, the Board of Zoning Adjustments may approve Conditional Use Permit PLN17-0012 by adopting Resolution 17-002 with the attached Findings of Fact, subject to the recommended Conditions of Approval and finding that PLN17-0012 is categorically exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines, Article 19, Section 15301 (a) as interior and exterior alterations to an Existing Facility.
ATTACHMENTS
Vicinity Map
Applicant Statement
October 5, 2017 BZA Staff Report
Resolution 17-002 with recommended Findings and Conditions of Approval
Public Comments Received
Exhibit A - Vicinity Map, Site Map, Project Data (CUP-1)
Exhibit B - Parking Plan (CUP-3)
Exhibit C - Landscape Plan (CUP-4)
Exhibit D - Building Elevations & Signage (CUP-5)
Exhibit E - Proposed Rendering, Existing Photos, Deferred Items (CUP-6)
Exhibit F - Security Plan (CUP-7)
Exhibit G - Suite 3079 & 3077 Floor Plans (CUP-8)
Exhibit H - Photometric Plan
PREPARED BY:
Anjana Mepani,
Senior Planner, Planning Services Division