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File Number: 20-251 <br />Trusts (REITs) and those indebted by federally-backed mortgages, it is already <br />challenging for interested parties to identify viable sites in San Leandro in which to obtain <br />permits to conduct Type 7 manufacturing. Therefore, the likelihood of a vast proliferation of <br />these use types under the current local and State regulatory framework is already highly <br />constrained. <br />Arguments Against Continuing to Allow Type 7 Cannabis Manufacturing <br />·San Leandro is presently the only member agency of the Alameda County Fire <br />Department service area that allows this use type. <br />·Just like many other existing San Leandro-based industrial businesses that utilize volatile <br />chemicals as part of their operations, Type 7 facilities are an inherently higher-risk <br />business type. <br />·Even with robust regulations in place, the long-term safety of Type 7 facilities ultimately <br />depends on the actions of private business owners and their willingness to be good actors <br />who operate in compliance with all applicable regulations and safety standards on an <br />ongoing basis. <br />·Although the operators of the facility on Timothy Drive were operating outside the bounds <br />of what is legally permissible, this explosion and others like it demonstrate the dangers <br />involved when rogue actors fail to comply with established regulations. <br />Conclusion <br />As noted above, there are inherent policy trade-offs that the City Council must balance in its <br />decision to either continue to allow or, conversely, to disallow Type 7 cannabis product <br />manufacturing businesses in San Leandro. Staff seeks policy direction from the City Council <br />regarding the future of the program. If the City Council desires to disallow this use type, staff will <br />prepare proposed amendments to the City’s Municipal Code that would explicitly disallow this <br />use type, which could be presented to the City Council for its consideration and adoption at a City <br />Council meeting next month. To the extent the City Council desires to retain its existing regulatory <br />structure that allows this use type, City staff will continue to explore additional safety protocols and <br />procedures that could be added to the Building and Fire safety plan check process to further <br />ensure such license are operated in as safe a manner as possible. <br />Previous Actions <br />·The City Council adopted Ordinance 2013-020 in December 2013, which allowed for the <br />establishment of one medical cannabis dispensary subject to performance standards. <br />·The City Council adopted Ordinance 2014-003 in April 2014, implementing performance <br />standards for medical cannabis dispensaries, by amending the Zoning Code to enable the <br />use of medical cannabis dispensaries. <br />Page 5 City of San Leandro Printed on 6/10/2020 <br />799