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File Number: 20-045 <br />dwelling (AB 881). The legislation effectively enables anyone to construct an ADU on any <br />residential parcel. <br />In order to comply with these new statutory requirements, staff prepared amendments to Section <br />2-576 (now 2.04.388) to reflect the new development standards and to streamline the current <br />ADU review and approval process in a manner that conforms to the mandatory 60-day review <br />period. Rather than a review and approval through separate planning and building permits, the <br />changes will enable ADU review and approval through a single building permit application. As <br />required by State legislation, the proposed changes include updated land use definitions for <br />Accessory Dwelling Units and Junior Accessory Dwelling Units (JADUs), effectively enabling <br />bedrooms to have a kitchen permitted. <br />Cannabis Product Manufacturing Pilot Program <br />When the City Council first established a permit process for cannabis product manufacturing in <br />June 2017, less information was known about this emerging land use or its market demand. At <br />the time, a few cities and counties in California were fielding a substantial number of applications <br />for cannabis businesses and, because so few cities allowed cannabis product manufacturing, <br />there was a concern that San Leandro could face a similar situation. In an abundance of caution, <br />a pilot program was established to initially limit the total number of allowable cannabis <br />manufacturing conditional use permits in the City, to no more than five in total. These provisions <br />were supported by robust application requirements in Title 5 Chapter 6 of the San Leandro <br />Administrative Code (5.6.100 through 5.6.150). <br />Since that time, the City has entitled and permitted two cannabis manufacturers and currently has <br />two more conditional use permit applications in progress. The market demand for cannabis <br />product manufacturing is now better understood and is substantially less than initially assumed. <br />The City’s industrial vacancy rate remains very low and few property owners are willing to lease to <br />cannabis businesses. Planning and Building staff are also now well-acquainted with these use <br />types, and when coupled with increasingly robust regulation of these facilities by State agencies, <br />sufficient regulations remain in place to ensure the continued protection of public health, safety, <br />and welfare. <br />Given these factors, Staff recommends discontinuing the pilot program at this time by eliminating <br />the limit of five applications. Cannabis product manufacturing projects will continue to be <br />evaluated on a case by case basis and require approval of a conditional use permit by the Board <br />of Zoning Adjustments at a noticed public hearing. In addition to these local requirements, such <br />projects are also required to secure a separate permit from the State of California (currently <br />administered by the Department of Public Heath - Manufactured Cannabis Safety Branch). The <br />proposed code update will delete Zoning Code Section 4-1640 (D) “Total Number of Valid <br />Permits Allowed” and amend the concurrent provisions within Title 5, Chapter 6 of the <br />Administrative Code. All other Code provisions related to cannabis product manufacturing in the <br />Zoning Code and Administrative Code will remain unchanged. <br />Cross-Referencing and Organizational Inconsistencies <br />Staff proposes to correct several minor cross-referencing and organizational errors that do not <br />Page 3 City of San Leandro Printed on 2/25/2020 <br />10