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File Number: 16-371 Proposed Location Blum SL proposes to purchase real property at 1925-1927 Fairway Drive. The property is currently in escrow. The site complies with the distance requirements in the medical cannabis dispensary ordinance and is located in an industrial zone that is appropriate for the proposed use. In addition, Blum SL’s proposed site would provide in excess of 30 parking spaces, which exceeds the minimum parking standards required by the San Leandro Zoning Code. In the first full year of operations Blum SL expects to have 14 employees, which will increase to 21 employees by Year 3. In the first quarter of operations Blum SL expects to have 60 patient visits per day, which will increase to 300 patient visits per day by Year 3. The dispensary operations are proposed to utilize approximately 5,000 square feet of the 13,300 square feet building. Blum SL is interested in either relocating its laboratory and manufacturing operations to San Leandro, or expanding into manufacturing edibles in the remaining 8,300 square feet. DSWC identifies two potential locations for its proposed facility, and has secured both locations through lease options. The potential sites are: (i) 765-767 Marina Boulevard (the “Marina location”) and (ii) 1244 Doolittle Drive (the “Doolittle location”). Of the two, DSWC prefers the Marina location. However, the Marina location does not comply with the distance requirements in the medical cannabis dispensary ordinance because the site is located approximately 970 feet from the northwestern corner of the Boys and Girls Club of San Leandro (the ordinance requires a minimum of 1,000 feet between a dispensary and a youth center, which is defined as a facility that serves youth 18 years of age or under). Per the ordinance, in order for DSWC to operate a dispensary at this location, the City Council would have to make affirmative findings as part of the award of the dispensary permit that the site “will not impact the peace, order and welfare of the public.” (San Leandro Municipal Code section 4-33-200(d)(1). The ordinance closely follows the California Attorney General’s 2008 Guidelines for the Security and Non-Diversion of Marijuana for Medical Use. Under the Guidelines’ Section III.B.1 “Enforcement Guidance,” the Attorney General provides that medical marijuana may not be smoked at or within 1,000 feet of a school, recreation center, or youth center. Although the Attorney General’s Guidelines are not law, similar to the Attorney General’s opinions, courts routinely read both as persuasive authority when rendering decisions. Thus, it is the City Attorney’s opinion that if the City Council approves the permit with the Marina site as proposed, the permit is subject to challenge, which may be successful given the site is within 1,000 feet of the Boys & Girls Club, a land use that is expressly identified as incompatible within 1,000 feet of a medical cannabis dispensary. Per the ordinance, although medicine may not be smoked or consumed on the premises, the ordinance does provide that medicine may be dispensed in a variety of ways, including edibles such as cookies, cakes, and candies. Given these factors, the site’s proximity to the Boys & Girls Club (a youth center) raises substantive concerns. The Marina location is also situated within 350 feet of the proposed Industrial Transitional zone, which will be considered by the City Council in September as part of the anticipated Zoning Code updates. If adopted by the City Council, this zone would allow for residential development due to its proximity to the Downtown San Leandro BART station. Should the proposed zoning code changes ultimately be adopted in September, staff recommends that the Council consider updating the cannabis dispensary eligible locations map accordingly. In addition, this property is located in a prominent location with frontage directly on Marina Page 4 City of San Leandro Printed on 7/13/2016 403