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HomeMy WebLinkAboutPZ-22-19 / 50 S. Emerson Street / 1st reading of an ORDINANCE REGULATING CANNABIS BUSINESS ESTABLISHMENTS IN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS4/15/2020 BoardDocs® Pro Agenda Item Details Meeting Dec 03, 2019 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 7. NEW BUSINESS Subject 7.1 PZ -22-19 / 50 S. Emerson Street/ 1st reading of an ORDINANCE REGULATING CANNABIS BUSINESS ESTABLISHMENTS IN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS Access Public Type Action Preferred Date Dec 03, 2019 Absolute Date Dec 17, 2019 Fiscal Impact No Recommended Action Approve the Taxation Ordinance and Opt -in Ordinance related to recreational cannabis, including text amendments to Chapter 11 and Chapter 14 of the Village Code. Public Content Information Public Act 101-0027, which creates the Cannabis Regulation and Tax Act (the "Act"), was signed in to state law on June 25, 2019 by the Illinois General Assembly and goes into effect January 1, 2020. The Act legalizes the sale of adult use recreational cannabis and regulates possession, sale, and consumption. It also defines the various types of cannabis business establishments and regulates each. Previous Public Meetings and Commission Recommendations Several public meetings were held to gather feedback on the issue from both the public and various boards/commissions. Starting with the September 24, 2019 and October 8, 2019 Joint Committee of the Whole/Planning and Zoning Commission meetings, staff and legal counsel provided information on the Act and answered various questions on the topic to both the Village Board and the Planning and Zoning Commission. At the October 8th meeting, the Village Board directed staff to make a few modifications to the draft Opt -in ordinance and to schedule a public hearing with the Planning and Zoning Commission to further vet the subject. At the October 23, 2019 meeting of the Finance Commission, staff presented information related to the anticipated revenue the sales of recreational cannabis could generate for the Village, given the drafted 3% taxation ordinance and projected sales. Staff also answered basic questions about the Act itself and Village proposed regulations. The Finance Commission voted unanimously to permit the sale of recreational cannabis in the Village, per drafted opt -in ordinances. At the November 14, 2019 meeting of the Economic Development Commission, staff held a discussion with the EDC resulting in a unanimous vote to permit cannabis business establishments in the Village per drafted opt -in ordinances. On November 14, 2019, a public hearing was held in front of the Planning and Zoning Commission for the proposed amendments to Chapter 14 of the Village Code which would allow for the sale of recreational cannabis in the Village, as well as other regulations for cannabis business establishments (processors, growers, infusers, etc.). At the November 14 meeting, the Planning and Zoning Commission recommended approving the zoning text amendments as proposed in the draft Opt -in ordinance by a vote of 6-0. Public Outreach Over the past several months the Village has posted information on recreational cannabis on the web, including listing opportunities to attend public meetings, and providing ways to contact the Village with questions, concerns or https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 1/4 4/15/2020 BoardDocs® Pro letters of support. The Village website has recreational cannabis pages on the Transparency and Fact Check portal, has posted notice of meetings on the subject on the Village's Facebook page, and included notice of the topic in the Village's email subscription Agenda Notification system. Public Comment The Village heard public input from various organizations, businesses, and residents regarding the potential retail sale of recreational cannabis in the Village. Mark DeSouza and representatives from New Age Care (the Village's current medical marijuana dispensary) were in attendance at most of the aforementioned public meetings. Mr. DeSouza noted they are committed to remaining good stewards for the community and stated that the existing medical facility would apply for a dual -operating license; which would allow both medical and recreational sales if the sale of recreational marijuana is approved in the Village. Village staff has been informed by New Age Care that they have been approved by the State of Illinois for a dual - operating license; this license is only valid at their existing location at 2015 E. Euclid, and is also only valid if a) the Village permits (opts -in) on recreational sale and b) the Village approves any other required zoning /business licenses, such as a conditional use. In the previous joint Committee of the Whole meetings, representatives from the Link Together Foundation spoke about the dangers of vaping devices containing THC and cautioned against the use of words and descriptions in the sale of recreational marijuana that target and attract children. A Village resident also spoke at length about why he believes that opting in would be a bad idea that could harm the Village's image. Village staff received a letter in support of the adoption of an opt -in ordinance from a Village resident that is attached. At the public hearing with the Planning and Zoning Commission on November 14, one resident spoke at the meeting in favor of approving the sale of recreational cannabis; no one spoke against legalizing the sale of recreational cannabis. Staff has received written comments on whether to approve the sale of recreational cannabis in the Village. Of the 35 to -date submitted comments, 34 were from residents. Of the 35 emails received by staff, 23 are in favor of opting in, 9 were requesting the Village to opt -out, and 3 were neutral or did not state a specific position. In addition to the testimony at the aforementioned meetings, the Village Manager's office has received numerous emails both in support and against the retail sale of recreational marijuana in the Village. No comments to this date have focused on the other aspects of the business, such as growing, transporting or processing the product. Opt -In Proposed Regulations As previously presented to the Village Board, Staff held internal discussions related to buffering of cannabis dispensaries/cannabis business establishments, including what types of uses to buffer from (churches, schools, parks, hospitals, and other places of worship) and what distance the buffers should be (100, 250, 500 or 1,000 feet). Staff is proposing that recreational cannabis dispensaries should follow the same buffer requirements as the Village's liquor code; this proposed regulation is consistent with the presentations given at all the aforementioned public meetings the joint meetings on September 24 and October 8. Therefore, it is proposed that recreational cannabis facilities be located at least 100 feet from any public or private school, church or other place of worship, or hospital. Additionally, the ordinance would prohibit any two cannabis establishments from being located within 1,500 feet of each other, consistent with the Act. The following summarizes the proposed "opt -in" text amendments, including restrictions proposed in the ordinance. Definitions of each Cannabis Business Establishment type, as well as supporting terms such as "Cannabis Lounge or Social Space" (to specifically prohibit) would be added to Chapter 11 Merchants, Businesses, Occupations and Amusements". This chapter would have an entire section, Article XLI, devoted to Cannabis Business Establishments. Details of the operation of a dispensing organization, including minimum age of 21 to purchase, how to verify age, and what building enhancements must be completed for any retail dispensary (such as installation of video security cameras). Also included in the regulations are adverting restrictions. Note that the hours of operation per the Act are 6 AM through 10 PM, though the Village may further restrict hours of operation either via code or conditional use process. Language prohibiting any Cannabis Lounges or Social Spaces is included, which would prohibit any restaurant or other business from allowing on-site consumption. NOTE: in the recently approved trailer bill, clarification was made as to where cannabis could be consumed on-site (such as at a business or in the dispensary itself). More information on the trailer bill is below. https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 2/4 4/15/2020 BoardDocs® Pro • Language regarding unlawful operation of any cannabis business establishment is included, including provisions for the Village Manager to suspend or revoke business licenses and conditional use permits if necessary. • Operation of a motor vehicle by any person under 21 under the influence of cannabis is deemed unlawful. All other DUI regulations apply for those over the age of 21 as noted in Village Code Section 18.501. • Each type of Cannabis Business Establishment is listed in the Chapter 14 Zoning Use Table. • Cannabis Dispensing Organizations (dispensaries) would be a conditional use in the B3 and I-1 zoning districts. Conditional uses require a public hearing and Village Board approval. • All others (growers/cultivators, infusers, processors or transporters) would be a conditional use in the I-1 zoning district. Conditional uses require a public hearing and Village Board approval. • Village Code would further restrict location, prohibiting any facility from operating within 100 feet of any public or private nursery school, preschool, primary, or secondary school, church/place of worship or hospital. This restriction mirrors the liquor code. A map of this restriction is attached. The code also ensures that cannabis business establishments are located a minimum of 1,500 feet from each other. The attached "Recommended Regulations" map shows how the proposed zoning regulations affect where a potential cannabis -related business could locate if the Village opts -in. Taxation The proposed taxation ordinance is also included. This ordinance corresponds with the ordinance, and allows the Village to collect the maximum 3% Cannabis Retailers Occupation Tax in addition to home rule and regular sales taxes. The Village estimates that, given the anticipated demand for recreational cannabis, a single retail license would generate approximately $440,000 in sales tax revenue annually. Trailer Bill and Other Clarifications A 400+ page trailer bill (SB 1557) was passed by the State on November 14, 2019. There are a few items that are noteworthy in the trailer bill; however, a modification to the proposed opt -in ordinance is not required per legal counsel. The bill removes the "other entity" language with regard to on -premise consumption (i.e. cannabis lounges). The Act would now allow a unit of local government to only authorize on -premises consumption of cannabis at or in a dispensing organization or retail tobacco store (as defined in Section 10 of the Smoke Free Illinois Act). THe proposed ordinance before the Village Board would prohibit any on-site consumption, including was is allowed in the trailer bill. The bill also allows for municipalities to collect taxes starting in July (up from September 2020). With regard to advertising, the Act does define advertise as "to engage in promotional activities including, but not limited to: newspaper, radio, Internet and electronic media, and television advertising; the distribution of fliers and circulars; and the display of window and interior signs." There was a question of whether a cannabis business located in an area with an advertisement restriction could have any signs. A sign simply stating the name of the establishment would be permissible as it would be for identification, not advertisement. However, any other signs would be prohibited by the advertisement restriction. Recommendation As noted in previous meetings, nearly every voting district in the Village had majority support for recreational cannabis based upon results from the 2016 election day poll. The Village has been diligent in promoting meetings and encouraging feedback from the public, and while staff and the board did receive some emails from those urging to opt out, there were also many urging the Village to opt -in. Of the 35 emails the Village staff received, many of which were forwarded from the Village Board, 66% of these were in favor of opting in. The reality the Village is facing is one where recreational consumption of cannabis is legal in the state of Illinois effective January 1, 2020. Public safety officers, employers, schools, and numerous other organizations must adapt to address this reality. In addition to carefully crafted zoning and business license regulations, the Village is being pro -active to address the anticipated increase in consumption of cannabis through greater police training and public education. The 3% tax revenue collected far exceeds any share that may be distributed at a later date by the State of Illinois, and does not have restrictions attached as to how this 3% may be spent. Anticipated sales tax revenues collected through retail sale of recreational cannabis could be used to abate the costs of police enforcement and increase public education. Police will be forced to administer use and OWI (Operating While Intoxicated) laws in the Village regardless of whether the sale of recreational cannabis is approved in the Village. The Police Department expects there will be costs regarding testing, training, and new equipment; sales tax revenues from recreational marijuana could defray some of those costs. From a business and zoning perspective, the proposed amendments to the Zoning Code would be applicable to the community as a whole and are not proposed in response to an individual parcel within the Village. The proposed https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 3/4 4/15/2020 BoardDocs® Pro changes are intended to reflect current Village objectives as outlined in the Strategic Plan, Comprehensive Plan, and other accepted planning documents. These objectives include economic vitality through support, innovation, and collaboration with the Village's business community. The Village is to ensure that the community's economy is able to thrive and adapt to changes in the market through innovation and building on local and regional assets. The proposed amendments satisfy the standards for text amendments as required in the zoning code. The attached "Surrounding Communities" map shows fifteen surrounding communities and whether they have opted - in, opted out, or which way they are leaning towards if they have not formally voted on the matter. The map is based on recent newspaper articles on the communities. Five communities (Buffalo Grove, Northbrook, Niles, Schaumburg, and Rolling Meadows) have opted -in, while three communities (Arlington Heights, Glenview, and Park Ridge) have opted out. Of the seven remaining communities, five are leaning towards opting in and two are leaning towards opting out. The manner in which the Village's ordinance is drafted allows the Village Board to retain control on the issuance of any cannabis business establishment licenses through the conditional use process. This process could allow the Villages' existing medical dispensary, which has been approved for dual -license by the State, to demonstrate itself as an appropriate use in a public meeting format - and the Village Board is thereby able to decide on the matter on a case-by-case basis. Due to the aforementioned recommendation summary, staff recommends approval of the opt -in ordinance and associated taxation ordinance as attached. Alternatives 1. Approve opt -in ordinance and taxation ordinance. 2. Action at discretion of the Village Board. PZ -22-19 Draft PZ Minutes 11-14-19.pdf (121 KB) Surrounding Communities.pdf (1,385 KB) Cannabis e-mails 11-27.pdf (1,743 KB) EDC Minutes Nov 14, 2019.pdf (244 KB) EDC Minutes Nov 14, 2019.pdf (244 KB) Opt -Out Draft Ordinance.pdf (95 KB) UPDATED July 1 Opt -In Taxation Ordinance.pdf (86 KB) Opt -In Regulations Ordinance.pdf (132 KB) Administrative Content Executive Content Palatine first Council meeting on this: Dec 9th https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 4/4