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File Number: 20-251 <br />proposing to conduct volatile extractions requiring a Type 7 state license. On the morning of the <br />hearing, an explosion took place at 1798 Timothy Drive, the location of one of the two proposed <br />cannabis manufacturing facilities to be considered that evening. This was a serious incident that <br />resulted in injuries, property damage, and arrests for criminal charges. The applicant was not <br />permitted or licensed for any cannabis manufacturing activities and the City was unaware any <br />activity was occurring on the property prior to the incident. The project applicant subsequently <br />withdrew their application. Additional details on that explosion will be provided by the Alameda <br />County Fire Department as part of its visual presentation to the City Council, which is associated <br />with this staff report. <br />The second, unrelated Conditional Use Permit application for cannabis product manufacturing is <br />proposed at 14509 Catalina Street (PLN19-0052). In the aftermath of the explosion at 1798 <br />Timothy Drive, the applicants for the Catalina Street project proactively requested to amend their <br />application to remove the proposed Type 7 volatile extractions. Their revised application had not <br />yet been submitted at the time of this report and will be rescheduled and re-noticed for <br />consideration by the Board of Zoning Adjustments once it is deemed complete. As a result, the <br />City presently has no active applications for Type 7 facilities, nor are any applications pending. <br />Policy Considerations <br />Based on the request provided by the City Council at the May 18, 2020 City Council meeting, <br />staff presents the following policy considerations and seeks direction from the City Council <br />regarding the future of Type 7 licenses in the City of San Leandro. <br />Arguments in support of retaining local regulations that facilitate Type 7 manufacturing <br />·The City previously spent considerable effort analyzing this use type and developed robust <br />regulations that are designed to protect the public health, safety, and welfare. These <br />regulations co-exist with another set of stringent State-level regulations and inspection <br />requirements. <br />·Staff research has thus far been unable to identify examples of fully-licensed Type 7 <br />facilities in California that exploded (i.e. previously identified examples of facilities that <br />exploded took place at illegal operations). <br />·By continuing to allow all types of cannabis manufacturing, the City will retain its position to <br />accommodate the anticipated growth in the cannabis manufacturing industry as well as the <br />anticipated employment and local tax revenue stemming from those uses. These uses also <br />advance the City’s goal to support employment-intensive businesses in the industrial area, <br />as opposed to warehousing. <br />·Banning Type 7 uses could inadvertently incentivize increased occurrences of clandestine <br />and unsafe cannabis extraction businesses by removing a legal path to conduct this use <br />type in a safe and well-regulated manner. <br />·Due to market conditions, common landlord concerns, and limitations commonly <br />applicable to investor-owned properties held by exchange-traded Real Estate Investment <br />Page 4 City of San Leandro Printed on 6/10/2020 <br />798