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File Number: 17-219 <br />This item was previously considered by the City Council at a public hearing held on December <br />19, 2016 and continued for further research and discussion. During the follow-up City Council <br />work session held on April 24, 2017, the direction provided by Council was to allow cannabis <br />laboratories and develop special required findings for approval of Cannabis Product <br />Manufacturing uses, as well as a concurrent pilot program to limit the total number of <br />manufacturing permits allowed on a trial basis. <br />Analysis <br />This proposal enables two new conditionally permitted land uses in the Zoning Code related <br />to cannabis: “Industry, Cannabis Product Manufacturing,” and “Laboratories, Cannabis <br />Testing Facilities.” The first will enable the manufacturing of cannabis products and the <br />second will enable laboratories that provide analytical data, quality control, and testing <br />services of cannabis and cannabis products. Proposed uses under these new categories <br />would require review and approval of a Conditional Use Permit by the Board of Zoning <br />Adjustments and State licensure prior to establishment. <br />Staff is also proposing a new pilot program for Cannabis Product Manufacturing applications <br />in the City’s Administrative Code. The pilot program will be a “first-come, first-served” system <br />for interested applicants, who will be required to comply with specific application submittal and <br />processing timeframe requirements. Staff proposes to limit the total number of conditionally <br />permitted Cannabis Product Manufacturing facilities to five (5) permits. The City Council will <br />have the option to expand or modify the pilot program after reviewing the outcome, once the <br />initial permitted Cannabis Product Manufacturing uses have been established and become <br />operational. <br /> <br />For the Zoning Code update, staff proposes to define and identify “Laboratories, Cannabis <br />Testing Facilities” and “Industry, Cannabis Product Manufacturing” in Zoning Code Articles 3, <br />6, & 7 as follows: <br /> <br />“Laboratories, Cannabis Testing Facilities. Laboratories conducting safety, quality <br />control, and analytical testing services of cannabis and products derived from cannabis <br />as a service to cannabis dispensaries, medical facilities, government agencies, <br />cannabis product manufacturers, or other entities as allowed by state law. This <br />definition includes cannabis testing and laboratory facilities requiring a Type 8 license <br />from the State of California. This definition does not include the cloning, planting or <br />cultivation of cannabis plants or the direct sales, distribution, delivery, or dispensing of <br />cannabis and cannabis products to the public.” <br /> <br />“Laboratories, Cannabis Testing Facilities” would only be allowed in the Community <br />Commercial (CC), Industrial General (IG), Industrial General - Assembly Use (IG-AU), and <br />Industrial Park (IP) zoning districts with an approved Conditional Use Permit. Laboratories, <br />Cannabis Testing Facilities are not proposed to be subject to buffer or distance requirements <br />as they have minimal product on hand, limited interaction with clients, and are required to <br />destroy or securely dispose of test samples. Cannabis testing laboratories will be limited to <br />performing independent analytical testing and quality control as a service to other cannabis <br />businesses and are prohibited from growing, selling, or delivering cannabis. <br /> <br />Page 2 City of San Leandro Printed on 6/13/2017 <br />17