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HomeMy WebLinkAbout09085As Amended 12/27/2016 ORDINANCE NO. 9085 AN ORDINANCE AMENDING TITLE XI AND TITLE XVII OF THE PUEBLO MUNICIPAL CODE RELATING TO RETAIL MARIJUANA STORES AND PROVIDING PENALTIES FOR VIOLATION THEREOF WHEREAS, on November 6, 2012, the voters of the State of Colorado approved Amendment 64. Amendment 64 added §16 of Article XVIII to the Colorado Constitution, which authorized a system of state and local licensing of businesses engaged in the cultivating, testing, manufacturing, and selling of marijuana; and WHEREAS, Subsection 16(5)(f) of Article XVIII allows governmental entities, within their respective jurisdictions: to prohibit the operation of marijuana establishments; to regulate the time, place, and manner under which marijuana establishments may operate; and to limit the total number of establishments within their jurisdictions, including the authority to engage in local licensing of marijuana establishments; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicating matter being added) SECTION 1. Section 11-11-103 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by adding subsection (15.5) and amending subsection (16) to read as follows: Sec. 11-11-103. Definitions . . . . (15.5) shall mean the geographic area in which retail Retail marijuana district marijuana stores may be located. There shall be two Retail Marijuana Districts. The North Retail Marijuana District shall be that area of the City located north of the Arkansas River. The South Retail Marijuana District shall be that area of the City located south of the Arkansas River. (16) Retail marijuana establishment means a retail marijuana cultivation facility, a retail \[or\], or a retail marijuana marijuana products manufacturer , a retail marijuana testing facility store . . . . SECTION 2. Subsection (a) of Section 11-11-203 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended by adding Subsection (12) to read as follows: Sec. 11-11-203. Powers of Authority. (a) The Authority shall have the following powers: . . . (12) To promulgate such rules and regulations deemed necessary to properly administer and enforce this Chapter, and to exercise all other powers and duties as are set forth in this Chapter, as well as those set forth in the Colorado Retail Marijuana Code and subsection 5(f) of Section 16 of Article XVIII of the Colorado Constitution. The Authority shall provide all proposed rules and subsequent changes thereto, to City Council for approval by Resolution. SECTION 3. Section 11-11-301 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified to read as follows: Sec. 11-11-301. Licenses and permit required. (a) No person shall operate a retail marijuana establishment unless he or she has first obtained the following and maintains the same in full force and effect: , issued by the Director of Planning and (1) A conditional use permit Community Development, \[\] from the Cityfor the location of the proposed licensed premises; . . . (b) No person may apply for a license to operate a retail marijuana establishment until he \[\]and subsections (a)(3) or she has first met the requirements stated in subsections (a)(1) (a); and demonstrates he or she has received or applied for the through (5) of this Section necessary City sales and use tax license and excise tax license required by subsection (a)(2) . (c) The City of Pueblo shall not be required to cultivate or care for any marijuana or marijuana products belonging to or seized from any licensee. The City of Pueblo is not authorized to sell marijuana, retail or otherwise. Any marijuana seized by the City for whatever reason shall be disposed of in accordance with law. SECTION 4. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-302 to read as follows: Sec. 11-11-302. \[Classes of \] Retail marijuana licenses. (a) The Authority may issue the following licenses for retail marijuana establishments, granting the privileges described in Title 12, Article 43.4, C.R.S., subject to the requirements, conditions, qualifications, and limitations set forth in this Chapter: (1) Retail marijuana cultivation facility; \[and\] (2) Retail marijuana products manufacturer; ; and (3) Retail marijuana testing facility (4) Retail marijuana store facility . (b) No more than four (4) retail marijuana store facility licenses shall be issued for each retail marijuana district. (c) The holder of a license for a retail marijuana testing facility may not hold or have an interest in any other class of retail or medical marijuana license. SECTION 5. Section 11-11-304 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified to read as follows: Sec. 11-11-304. Fees. (a) Applicants shall pay the following fees to the City of Pueblo in addition to any fees payable to the State: \[\] Application Fees (1) Application packet for new license: Twenty-five dollars ($25.00). (2) Application for new license for retail marijuana establishments: (A) Licenses converted from medical marijuana businesses: Two hundred fifty dollars ($250.00) (to be received from the State of Colorado before the application is deemed complete). (B) Licenses not converted from medical marijuana businesses: Two thousand five hundred dollars ($2,500.00) (to be received from the State of Colorado before the application is deemed complete). (3) No other application fees may will be charged, except pursuant to subsections 5(h) and 5(i) of Section 16 of Article XVIII of the Colorado Constitution. \[\] Operating Fees \[\] (b) Operating fees and all other fees necessary for the administration, regulation, and , and enforcement implementation of this Chapter are as follows and are to be paid to the City of Pueblo, in addition to any fees payable to the State: \[\] O, (1) Initialperating fees are to be paid upon issuance of the initial license by the Authority and yearly thereafter upon renewal : \[ (A) Retail marijuana cultivation facility: Five thousand dollars ($5,000.00) plus fifty cents ($.50) per square foot of the portion of the licensed premises in which plants are located but said initial operating fee shall not exceed \]F a total of ifteen thousand dollars ($15,000.00). \[ (B) Retail marijuana product manufacturing facility: Six thousand \] Fifteen thousand dollars ($15,000.00) for the first year; and dollar ($6,000.00). ten thousand dollars ($10,000.00) each subsequent year thereafter. \[ (C) Retail marijuana testing facility: One thousand five hundred \] Five thousand dollars ($5,000.00). dollars ($1,500.00). (D) Retail marijuana store: Fifteen thousand dollars ($15,000.00). Additional a (2) dministrative operating fees: \[\] One (A) Transfer of location: Seven hundred fifty dollars ($750.00). thousand five hundred dollars ($1,500.00). \[ (B) Change of principals or ownership: Three hundred dollars \] One thousand five hundred dollars ($1,500.00). ($300.00). (C) Change in operational plan: Three hundred dollars ($300.00). (D) Registration of manager: One hundred dollars ($100.00). \[\] One (E) Modification of premises: Four hundred dollars ($400.00). thousand dollars ($1,000.00). (F) Report of minor change: One hundred dollars ($100.00). \[\] Five thousand (G) Late renewal fee: Five hundred dollars ($500.00). dollars ($5,000). (H) License extension fee: One hundred fifty dollars ($150.00) for each thirty-day day period or portion thereof. \[ 3. Annual Operating Renewal Fees are to be paid upon issuance of the annual license renewals by the Authority: (A) Retail Marijuana Cultivation Facility: $5,000.00 plus $.50 per square foot of the portion of the licensed premises in which plants are located but said Annual Operating Renewal Fee shall not exceed a total of $15,000.00. (B) Retail Marijuana Product Manufacturing Facility: $6,000.00. \] (C) Retail Marijuana Testing Facility: $1,500.00. SECTION 6. Section 11-11-305 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified to read as follows: Sec. 11-11-305. Term of license. Every license shall be valid for one year from the date it is issued unless the license is Despite anything contained in this article, a licensee has no earlier suspended or revoked. vested right to renew a license, and no property right to renew a license. SECTION 7. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-307 to read as follows: Sec. 11-11-307. Application for retail marijuana license. (a) An applicant for a retail marijuana store license shall submit to the Authority an application with the following information: . . . (5) For a retail marijuana store license, a business plan that demonstrates or provides: a. The ability of the applicant to successfully operate in a highly regulated industry; b. Clear estimates for revenues and operating costs; and c. Documentation to verify the applicant has the financial resources to pay all start-up and operational costs for at least the first year of business. . . . \[\]eight (c) The applicant shall submit to the Authority the original application and five (5) (8) copies of the application. The Authority shall provide copies to the Police Department, the City's Department of Planning and Community Development and the City's Law Department. (d) An applicant shall not submit its application, and the Authority shall not accept the all application fees have been received from the State and same, until the application is complete with all required information and necessary documents attached, in clear and legible form, assembled in good order, and with all required copies. The applicant shall certify that the application is complete, and the Authority or the Authority’s Clerk shall review the application to determine that it appears to be complete before accepting the same. . . . only (f) After an application is accepted as complete, it may be amended or as set forth below: \[ supplemented in writing before the application is set for hearing, but each amendment or supplement shall be verified under oath by each principal, and the registered manager and employees shall verify under oath the portions of any amendment or supplement that pertain to each of them. The applicant shall submit to the Authority the original of each amendment or supplement and five (5) copies. The Authority shall provide copies to the Police Department, the City’s Department of Planning and Community Development and the City’s Law \] Department. (1) Retail marijuana store applications may only be amended or supplemented in writing during the application period. No amendments or supplements will be accepted after the application period closes. (2) All other types of retail marijuana licenses may be amended or supplemented in writing before the application is set for hearing. (3) All amendments and supplements must be verified under oath by each principal, and the registered manager and employees shall verify under oath the portions of any amendment or supplement that pertain to each of them. The applicant shall submit to the Authority the original of each amendment or supplement and eight (8) copies. The Authority shall provide copies to the Police Department, the City’s Department of Planning and Community Development, and the City’s Law Department. \[ (g) After the application is set for hearing, the application shall not be amended or supplemented and the Authority shall rule on the application as it exists at the time the hearing is \] set. SECTION 8. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-308 to read as follows: Sec. 11-11-308. Requirements to obtain and retain a retail marijuana license. In order to obtain a license, the applicant shall demonstrate by a preponderance of the evidence to the Authority that the following requirements are satisfied: (1) General requirements. , issued by the a. The applicant has obtained a conditional use permit Director of Planning and Community Development, \[from the City\] for the location of the proposed licensed premises; \[\]applied for, and will be issued b. The applicant has obtained the upon receipt of any necessary City sales and use tax license and excise tax license retail marijuana license ; . . . (2) Personal requirements for the licensee, principals, registered manager and employees. . . . \[\] Allsthat o. If the licensee or principals already hold one (1) retail marijuana may apply and be approved \[\] license in the City of Pueblo, and the application is for except that licensees or principals another retail marijuana license of the same class, may only hold one retail marijuana store license. The Authority shall not issue a second license to a licensee or principal unless it determines that issuance of the second license will not significantly restrain competition among licensees of that class. (3) Location and other licensing of premises. . . . c. The premises are not licensed or operated as an establishment for the sale a non- or service of alcohol beverages as defined in Section 12-47-103(2), C.R.S., or as cigarette tobacco product retailer, a massage parlor, a dance hall or an amusement establishment as defined in Title IX, Pueblo Municipal Code. . . . (4) Control, security and code compliance of premises. . . . g. The area of the proposed licensed premises is equipped with a ventilation and filtration system that is sufficient in type and capacity to eliminate marijuana odors emanating from the interior to the exterior discernible by a reasonable person at the property line. For facilities which are located on the same property as another use, the ventilation and filtration system must be sufficient to eliminate marijuana odors discernible by a reasonable person at the exterior of the building. The ventilation system must be inspected and approved by the Pueblo Regional Building Department. . . . Requirements specific to a retail marijuana store license: (6) a. The local licensing authority shall review the application of each applicant that satisfies the minimum requirements set forth in Sections 11-11-307 and 11-11-308, Pueblo Municipal Code, and award points according to the Retail Marijuana Rules and Regulations. The following is a non-exhaustive list of categories or criteria that may be considered for the award of points to an applicant: 1. Successful experience in operating a licensed marijuana establishment; 2. Pueblo County residency; 3. Criminal background and history of applicant, principals, owners, operators, managers, and employees; 4. Employment of local residents; 5. The air filtration or scrubbing system to minimize odors and public nuisance complaints; 6. Security; 7. Operating plan; 8. Business plan; and 9. Assets, operating capital, and overall financial capability. b. The Authority may issue a retail marijuana store license to the applicant in each district who earns the highest point total pursuant to subparagraph (a) of this Section. The Authority may deny a retail marijuana store license to any applicant that does not earn the minimum point total set forth in the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter. If two or more applicants applying for licensure in the same district receive the same total score, and, pursuant to this Chapter, the Authority cannot issue a license to each of those applicants, the Authority shall randomly select the applicant that will be awarded a retail marijuana store license. c. Before the Authority issues a local license to an applicant for a retail marijuana store, the applicant shall procure and file with the City evidence of good and sufficient bond in the amount of twenty thousand dollars ($20,000.00) with a corporate surety duly licensed to do business with the State of Colorado, approved as to form by the City Attorney, to guarantee that the applicant shall pay all City sales, use, and any other taxes as provided by law. A corporate surety shall not be required to make payments to the City claiming under such bond until a final determination to pay taxes due to the City has been made by the Director of Finance or a court of competent jurisdiction. All bonds required pursuant to this subsection shall be renewed before the bondholder's license is renewed. The renewal may be accomplished by continuing the certificate issued by the surety. (7) Requirements for premises that are not completed. . . . c. In the event that the license is approved, but the premises are not completed, inspected and approved as required in this Chapter within one hundred twenty . (120) days of license approval, the approval shall lapse and the license shall not be issued The applicant may submit a written request for additional time to complete the premises at least thirty (30) days prior to the expiration of the one hundred twenty (120) daysAny such written request must state the reasons for the request and . the additional time necessary to complete the premises. The Authority may approve the request if it determines there was good cause for the delay, the applicant can reasonably complete the premises within the additional time requested, and the additional time will not defeat the competitive application process . \[\] (8) (7)Requirements of this Section also apply to licensees; continuing duty. . . . SECTION 9. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-309 to read as follows: Sec. 11-11-309. Good cause for denial of new license, denial of renewal or sanctions. , The Authority may deny a new application, deny renewal of a license or impose sanctions on a retail marijuana license previously approved or issued if the Authority finds, by a preponderance of the evidence at a hearing, or upon the admission or stipulation of the applicant or licensee, that any of the following have occurred: . . . (3) The licensee, principals, registered manager or employees have committed or City regulation, attempted to commit any violation of any City ordinance, State statute or State regulation or have permitted others to violate the same on the licensed premises or adjacent grounds or on other licensed premises or adjacent grounds; . . . \[ (5) The licensed premises or adjacent grounds have been operated in a way that \]will have, or have had a harmful or substantially harms the public health, safety or welfare damaging impact on the public health, safety, or the general welfare of the City or the neighborhood where the retail marijuana establishment is located ; . . . (9) The licensee, principals, registered manager or employees have made any false statement in the license or renewal application as to any of the facts required to be stated in such application; (10) The licensee has failed to file any reports or furnish any information as required by the provisions of this Code relating to the operation of a retail marijuana establishment, including any municipal tax returns; (11) The licensee has refused to allow an inspection of the licensed premises as authorized by this Article and Colorado Statute; (12) The licensee has failed to appear upon a municipal court summons for a violation of the Pueblo Municipal Code; or (13) The licensee has failed to comply with the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter. SECTION 10. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-311 to read as follows: Sec. 11-11-311. - Hearing on application for new license or the denial of a new retail marijuana license. . . . (d) If the Authority finds at the hearing that the applicant has not shown by a preponderance of the evidence that it has met the requirements for issuance of a retail marijuana license or has failed to show by a preponderance of the evidence that there is no good cause to Failure to properly bring the matter deny the license, the Authority shall deny the license. before the Authority or to take part in the hearing shall prohibit the applicant from seeking any other remedy from the City. If the Authority denies a license pursuant to this subsection, the applicant may appeal the decision pursuant to the Retail Marijuana Rules and Regulations. SECTION 11. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-315 to read as follows: Sec. 11-11-315. Major changes to license, licensed premises or adjacent grounds requiring approval of the Authority. prior (a) No licensee shall make any of the following changes without first obtaining the and demonstrating compliance with the pertinent written approval of the Authority requirements, if any : (1) Any transfer of the license or any ownership interest in the licensee entity or shall comply with the following requirements: \[\] license; (a) For a retail marijuana store license, any transfer of ownership of any license shall be prohibited for one (1) year after the date the license is issued by the Authority. However, during that time, a transfer of ownership may be permitted by the Authority if the licensee can demonstrate that a transfer of ownership is made necessary by death or disability of the licensee or other substantial hardship. (b) For a retail marijuana store license, changes in the business structure of the licensee shall require a hearing before the Authority, at which time the license will be revoked if the new business structure does not meet the requirements of this article or if the new business structure has fewer awarded points as set forth in Section 11-11-308(6)(a) than did the original business structure. (c) A licensee may request to transfer ownership after the expiration of one year. The request may be approved if the Authority finds that the new licensee can amass at least as many points set forth in Section 11-11- 308(6)(a) as the original licensee; all occupational taxes, sales and excise taxes, any fines, penalties, and interest assessed against or imposed upon such license or licensee in relation to the licensed premises is paid in full or served in full; the new licensee can comply with the limitation on the number of retail marijuana store licenses set forth in Section 11-11-308(2)(o); the new licensee can comply with all other provisions of this Chapter; the new licensee has complied, and can continue to comply with all of the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter; and the State has approved the transfer pursuant to requirements of the Colorado Retail Marijuana Code. (d) For all retail marijuana licenses, a transfer of the license must be approved by the Authority after a hearing. must comply with the (2) Any change in location of the licensed premises following requirements: \[\] ; (a) For a retail marijuana store license, any transfer of location shall be prohibited for one (1) year after the date the license is issued by the Authority. However, during that time, a transfer of location may be permitted by the Authority if the licensee can demonstrate that a transfer of location is made necessary by death or disability of the licensee or other substantial hardship. (b) A licensee may request to transfer location after the expiration of one year. The request may be approved if the Authority finds that the licensee has obtained a conditional use permit for the new location; all occupational taxes, sales and excise taxes, any fines, penalties, and interest assessed against or imposed upon such license or licensee in relation to the licensed premises is paid in full or served in full; the new location will not violate the limitation on the number of retail marijuana store licenses set forth in Section 11-11-308(2)(o); the new location complies with all other provisions of this Chapter; the licensee has complied, and can continue to comply with all of the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter; and the State has approved the transfer pursuant to requirements of the Colorado Retail Marijuana Code. (c) For all retail marijuana licenses, a transfer of the location may be approved by the Authority if the licensee obtains a conditional use permit for the new location, and demonstrates compliance with the requirements of this Title after a public hearing. . . . (c) The Authority may summarily approve all other proposed major changes or hold a public hearing on the same, in the Authority’s discretion, depending on how substantial the \[\] change appears to be and whether the proposed change is likely to cause any substantial harm to public health, safety or welfare. . . . SECTION 12. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-316 to read as follows: Sec. 11-11-316. Reports of minor changes. Every licensee shall report the following to the Authority, in writing within ten (10) days of such event: . . . (4) Any charges filed against or any conviction of any principal, registered manager or employee for any felony, misdemeanor or serious traffic offense, including but not limited to any deferred judgment or entry into any diversion program ordered or supervised by a , where the event must be reported even if the principal, registered court of law manager or employee will be dismissed ; SECTION 13. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-317 to read as follows: Sec. 11-11-317. Renewal of license . . . (b) A licensee may renew a license that has expired if: (1) The license has expired less than ninety (90) days; and (2) The licensee pays the annual operating renewal fee and an additional five \[\]thousand \[\]($5,000.00) hundred dollars ($500.00) late fee. . . . SECTION 14. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-321 to read as follows: Sec. 11-11-321. Inspection of licensed premises and adjacent grounds. (a) Every licensed premises and adjacent grounds shall be open to inspection by code enforcement officials, police officers, building officials, firefighters, zoning officials, sales, use and excise tax officials, and health department officials at any time that anyone is present in the licensed premises, without obtaining a search warrant, and without reasonable suspicion to believe that any violation or criminal offense has occurred. . . . SECTION 15. Article III of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-322 to read as follows: Sec. 11-11-322. Requests for information. . . . \[ (d) In the event that the licensee refuses to provide answers on the grounds that the answer may tend to incriminate him or her for some criminal offense, or on advice of legal counsel, the City and Authority may properly draw the inference and conclusion that the answer to the question would have been adverse to the licensee's position regarding the investigation or other matter then pending, and may institute a complaint and proceedings for sanctions based on such conclusion. \] (e) The licensee may not refuse to answer a question submitted to it on the grounds that: (1) The answer may incriminate its principals, financiers, registered manager or employees; (2) The answer might place his or her license in jeopardy; or (3) The question is not relevant. SECTION 16. Article VI of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-601 to read as follows: Sec. 11-11-601. Unlawful acts – any person. and class 1 municipal offense It shall be unlawful for any person to: . . . (3) Cultivate, possess, sell, transfer, give away, or dispose of marijuana unless so licensed or in the course of their municipal duties, or otherwise permitted to do so by law. An individual may be held criminally liable for violations of Chapter 11 of Title XI of the Pueblo Municipal Code even if not properly licensed hereunder. The lack of a license is not an affirmative defense. SECTION 17. Article VI of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby modified by amending Section 11-11-602 to read as follows: Sec. 11-11-602. Unlawful acts – licensees, principals, registered managers and employees. It shall be unlawful for any licensee, principal, registered manager or employee of a licensee to commit any of the following acts: ,\[\]:\[\] (1) To violate or to fail, neglect or refuse to comply with any requirement of this the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this ; \[\]Chapter 11, Title XI of the Pueblo Municipal Code; of the Chapter, Chapter 1, Title IX ;\[\];\[\] Pueblo Municipal Code, Article 43.4, Title 12, C.R.S., or of any State regulation pertaining to retail marijuana. . . . (14) To allow anyone who does not possess a current and valid owner and occupational license to transport retail marijuana or retail marijuana product between licensed premises. (15) To transfer, distribute, sell, give away, or dispose of any marijuana or any marijuana product by any other means than a face-to-face transaction within the licensed premises. Transfer, distribution, sale, gift, or disposing of marijuana via the internet or any on-line service is prohibited and unlawful. (16) To display, transfer, distribute, serve, sell, give away, or dispose of any marijuana or marijuana product in any public place other than the licensed premises. (17) For any licensee or any manager, employee, or agent of such licensee to fail to immediately report to the Pueblo Police Department any disturbance, unlawful or disorderly conduct, or criminal activity occurring at the location, on the premises, or within the licensed premises set forth on the license. A licensee, manager, employee, or agent will be criminally liable for any failure to report in a timely manner. (18) To abandon a licensed premises or otherwise cease operation without notifying the local licensing authority at least ten (10) days in advance, without accounting for and forfeiting to the state licensing authority for destruction all marijuana or products containing marijuana, and without paying all due sales and use taxes, excise taxes, fees or charges required by the Pueblo Municipal Code. SECTION 18. Article V of Chapter 4 of Title XVII of the Pueblo Municipal Code is hereby modified by amending Section 17-4-51 to read as follows : Sec. 17-4-51. Permitted use of land and buildings. Any use of land or structure not authorized herein as a use by right, conditional use, or \[\] Special Use Permit\[ use by review upon issuance of a special use permit in a designated zone \] Zone District district is unlawful. Except as otherwise provided, no building permit or certificate of zoning compliance shall be issued for a use not specifically mentioned or described in this Section. . . . (b) Permitted Uses Table Legend (1) This Section indicates which uses are permitted in each of the zone districts. The Permitted Uses Table contained in Section 17-4-51(c) identifies those uses that are permitted by right, conditionally permitted, use by review and not permitted. (2) In terms of any land use defined by these standards, the following shall apply: . . . \[ e. Permitted Uses (P): The use is permitted by right within the designated zone \] Zone District district. f. Conditional Use Permits (C): A use may be permitted as a conditional use if certain minimum conditions contained in the applicable ordinances have been satisfied as determined by the Administrative Official. The Administrative Official shall have thirty (30) days to complete the review of an application after it has been determined to be , except that the Administrative Official shall have ninety (90) days to complete complete the review of an application for all marijuana facilities after it has been determined to be complete . If the Administrative Official, after reviewing the application, determines one (1) or more of the conditions required for the permit cannot \[\]Special Use be satisfied, the applicant may seek approval of a special use permit Permit for the proposed use in accordance with Section 17-5-33 of the Pueblo Municipal Code. \[\] Conditional Use Permits All conditional use permits shall expire one (1) year \[ after issuance. Application and applicable fee for renewal of the conditional use \] Conditional Use Permit permit must be received thirty (30) days prior to the \[\] expiration date of the permit. Annual review of the conditional use permit Conditional Use Permit shall be required to verify compliance with all requirements of the permit. Failure to comply with all requirements of the permit, as well as any zoning violations, may be grounds for denial of the annual review \[\] Conditional Use and may result in revocation of the conditional use permit Permit . The Administrative Official shall have the authority to extend or eliminate the one (1) year expiration for uses that are minor in nature, as determined by the Administrative Official. \[ g. Special Use Permits (S): Certain uses may be permitted in the designated zone \]Zone District\[\]Special Use Permit district only after obtaining a special use permit in accordance with Section 17-5-33, compliance with specific conditions contained in Section 17-4-51 and any additional conditions deemed appropriate by the Zoning Board of Appeals. The Zoning Board of Appeals may add to or deviate from the specific conditions listed in Section 17-4-51, as deemed appropriate. \[ h. Limited Use Permits (L): Certain uses may be permitted in the designated zone \]Zone District\[\]Limited Use Permit district only after obtaining a limited use permit in accordance with Section 17-5-32, compliance with specific conditions contained in Section 17-4-51 and any additional conditions deemed appropriate by the Zoning Board of Appeals. The Zoning Board of Appeals may add to or deviate from the specific conditions listed in Section 17-4-51, as deemed appropriate. \[ i. Not permitted: A blank space indicates that the use is not permitted in that zone \]Zone District district . (c) Permitted Uses Table: (Major) (Minor) Table of Uses Zone Districts DEFINITI SPECIFIC ON 123 USE USES REFERE USE --- HARPHAPRHARP CCN CCN CATEGORIE(DEFINITINCE STANDA 2U RCN B P 1 1234123456781234 12345 S ON) §17-2-2 RDS 123 - ------------------- ----- O AAAARRRRRRRRRBBBBBH SSSSS --- III COMMERCIAL USES Bakery, retail (15) S CCP P P P P CCCC P Flea market (57) S S S S S PS Mobile home sales (95) S S S S S Pawnshop (108) S S P S P S S P Pharmacy (112) CS CCP P P CCCCCC P Precious metal purchaser (115) S P P S P Retail Retail sales, antiques (132)a. S P P P P S CCCC P Retail sales, big box (132)c. S P P P P Retail sales, building materials (132)d. S CCC P P P Retail sales, (132)e. P P P P S CP P P P S S S S S S S P garden center Retail sales, general (132)f. P S CP P P P P S P P P P P Retail sales, liquor store (132)g. P S P P P S S S S S P Retail sales, retail marijuana (131)c. CCC CC Retail sales, secondhan d (132)i. S S P P P P S S S S S P Retail sales, thrift (132)j. S S S P P . . . (e) Conditional uses. In addition to the other requirements, the following conditions shall apply to each of the uses in districts where they are indicated with a "C" in the Land Use Table. The conditions are listed below. . . . (42.5) Retail marijuana store facility. a. The facility shall be located beyond the required separation distances, as determined by direct measurement from the property line of the facility to the closest property line of the buffered use. Establishing a use within the required separation distance after the Conditional Use Permit is issued shall not be grounds to suspend, revoke or decline to renew the Permit for such facility provided the Permit and license for the facility remains lawfully in effect. In the event these separation distance restrictions do not appear reasonable when applied to a specific location, the applicant may apply to the Zoning Board of Appeals for a variance, but the variance may not reduce the separation distance requirements by more than ten percent (10%), except that schools may only be reduced as stated below. (1) One thousand (1,000) feet of a legally operational school, which holds classes. The Zoning Board of Appeals shall have the authority to grant a variance from the one thousand (1,000) foot school buffer if the property line of the school, by direct measurement, is one thousand (1,000) feet from the building of the marijuana facility. (2) Five hundred (500) feet of a hospital or substance abuse treatment center; and (3) Three hundred (300) feet of a residential use or residential zone district. b. The facility shall demonstrate compliance with all ordinances, including but not limited to drainage, detention, water quality, parking, landscaping, sewer, and public improvements. c. Notwithstanding anything to the contrary, all facilities shall provide, at a minimum, the following improvements : 1) Install landscaping according to Section 17-4-7 of this title, regardless of the applicability stated in Section 17-4-7(b)(2). 2) Comply with Subsections 17-4-46 (e)(7) and (f) of the Large Scale Development Standards. The Administrative Official has the authority to require alternative requirements for architecture, in cases where the requirements of Subsections 17-4-46 (e)(7) and (f) are not appropriate for a particular building or structure. 3) Provide parking according to Section 17-4-43(b), Section 17-4-44, and Section 17-4-45. All required parking spaces shall be permanent in character and provided with a permanent driveway to a public way. The driveway and parking spaces shall be paved with asphalt, concrete, Portland cement concrete or pavers. 4) Provide public improvements to bring the site and adjacent rights-of- way into compliance with applicable City standards, including but not limited to repairing or replacing broken sidewalks, curbs and gutters, and providing an ADA driveway “walk-around.” 5) Provide drainage, detention, and water quality in compliance with Storm Drainage Design Criteria and Drainage Policies for the City of Pueblo, June 9, 1997 (City Stormwater Criteria). Provide erosion and sediment control in compliance with City Stormwater Criteria and Colorado Department of Public Health and Environment. (6) Provide a maintenance plan for improvements required to be installed as part of the Conditional Use Permit. (7) The Administrative Official shall have the authority to modify, or substitute additional requirements for, any of the requirements listed above when the changes to the existing building will have a negative impact on the health, safety and welfare of the surrounding neighborhood. (8) The Administrative Official has the authority to reduce the requirements listed above for research facilities which only lease a portion of an existing structure. d. Each licensed location is permitted one (1) “64” sign, up to ten (10) square feet. e.Existing windows may be screened from the interior of the building, but shall not be removed or covered from the exterior. SECTION 19. Any person who violates any provision of Chapter 11 of Title XI, Pueblo Municipal Code or fails, neglects or refuses to perform any act required under said Chapter shall, upon conviction thereof, be guilty of a Class 1 municipal offense and be punished by a fine of not more than one thousand dollars ($1,000) or imprisonment for not more than one year, or both such fine and imprisonment. SECTION 20. This Ordinance, and the amendments to Title XVII of the Pueblo Municipal Code, shall be administered and enforced according to Chapters 5 and 7 of Title XVII, Pueblo Municipal Code, as amended. Any person who violates any provision of this Ordinance or these amendments shall be guilty of a municipal offense and shall be subject to punishment and all other remedies as provided in Chapter 7 of Title XVII of the Pueblo Municipal Code, as amended. SECTION 21. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of the Ordinance to effectuate the policies and procedures described herein. SECTION 22. This Ordinance shall become effective immediately upon final passage and approval. Upon repeal of Article 43.4 of Title 12, C.R.S., the Colorado Retail Marijuana Code, or Section 16 of Article XVIII of the Colorado Constitution, this Ordinance and Chapter 11 of Title XI, Pueblo Municipal Code, shall be immediately repealed and all retail marijuana store operations ceased, except that the City may act to wind-down any operations existing at that time. INTRODUCED: December 12, 2016 BY: Ed Brown PASSED AND APPROVED: December 27, 2016 City Clerk’s Office Item # R-9 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 12, 2016 TO: President Stephan G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Steven Meier, Director of Planning and Community Development SUBJECT: AN ORDINANCE AMENDING TITLE XI AND TITLE XVII OF THE PUEBLO MUNICIPAL CODE RELATING TO RETAIL MARIJUANA STORES AND PROVIDING PENALTIES FOR VIOLATION THEREOF SUMMARY: Attached for consideration is a text amendment that will amend Title XI and Title XVII of the Pueblo Municipal Code relating to retail marijuana stores. PREVIOUS COUNCIL ACTION: On May 11, 2015, City Council denied the proposed Ordinance, requesting a vote of the people at the November 2016 election. BACKGROUND: On March 11, 2015, the Planning and Zoning Commission (Commission) were presented with the original version of the proposed Ordinance and received significant testimony from the public regarding its provisions. After this meeting, on March 12, 2015, Staff and members of the City’s Local Licensing Authority visited with the Aurora Marijuana Enforcement Division (AMED) to discuss their Ordinance and Rules and Regulations. On March 17, 2015, City Staff held a public work session with the Commission to discuss the public comments received at the public hearing. Staff took the information received from the work session and the information received at the meeting with AMED and incorporated it into an updated version of the retail marijuana store Ordinance that was presented to the Commission at their March 25, 2014 meeting. On May 11, 2015, City Council denied the proposed Ordinance, requesting a vote of the people at the November 2016 election. The election results showed an affirmative majority to allow retail marijuana stores. FINANCIAL IMPLICATIONS: Each retail marijuana store would be required to pay an annual operating fee of $15,000, which will cause an increase in revenue to match the projected costs of services. However, the cost of services, such as inspections by several City departments and response by police, fire, and enforcement, is unknown; therefore, the financial implication to the City is unknown at this time. BOARD/COMMISSION RECOMMENDATION: At the March 26, 2014 Planning and Zoning Commission work session, with all of City Council in attendance, the establishment of retail marijuana stores was discussed. City Council requested that the Planning and Zoning Commission do additional research regarding retail marijuana stores, along with an overlay map, to be presented at a future meeting. On June 11, 2014, the Planning and Zoning Commission discussed whether or not to forward a recommendation to City Council concerning the Commission’s position on allowing retail marijuana stores within the City limits. After discussion, a Motion was made by Commissioner Eslinger to forward a recommendation to City Council that the Planning and Zoning Commission is not in favor of allowing retail marijuana stores within the City limits. The Motion was seconded by Commissioner Webb and passed 6-0 with Commissioner Burrer being absent. The Planning and Zoning Commission sent a letter on July 25, 2014 to City Council stating the Commission did not support the permitting of retail marijuana stores in the City, although the Commission would accept direction from City Council related to land use issues and land use policies that could be included within an Ordinance that would allow retail stores. The Planning and Zoning Commission discussed the amendment of the Pueblo Municipal Code relating to retail marijuana stores at work sessions on the following dates: August 27, 2014; September 24, 2014; November 26, 2014; January 28, 2015; February 5, 2015; February 25, 2015; and March 17, 2015. The Planning and Zoning Commission at their March 25, 2015 Regular Meeting voted 2-2 to recommend approval of the text amendment amending Title XI and Title XVII of the Pueblo Municipal Code relating to retail marijuana stores, with Commissioners Eslinger, Kaufman, and Seybold absent and Commissioners Lucas and Webb dissenting. A minimum of four affirmative votes is required for a recommendation of approval to be provided to City Council; therefore, the Motion to recommend approval failed. The draft Ordinance was presented to the Marijuana Licensing Authority at their March 26, 2015 meeting. The Authority voted to recommend approval with the following changes being incorporated into the Ordinance: 1. Set a minimum point requirement in the Rules and Regulations; 2. Transfer of ownership and location prohibited for one year from date of license with such transfer subject to review and approval by the Authority after the one year time period; and 3. Requirement that operating fees be paid with the application subject to refund if the application is denied or withdrawn. At the May 11, 2015 City Council meeting, the proposed ordinance was denied. The Planning Department met with City Council during a work session on November 21, 2016 to discuss the Ordinance that was proposed in 2015. At that time, City Council requested the Ordinance, with non-substantial changes made, be presented to City Council for approval. Further review and recommendation of the Ordinance by the Planning and Zoning Commission was not necessary due to the Ordinance being substantially the same as what was recommended by the Planning and Zoning Commission on March 25, 2015. STAKEHOLDER PROCESS: A Notice of Public Hearing was published in the Pueblo Chieftain and Public Hearings were held before the Planning and Zoning Commission on March 11, 2015 and March 25, 2015. ALTERNATIVES: If City Council does not approve this Ordinance, Title XI and Title XVII of the Pueblo Municipal Code will not be amended to reflect the proposed changes relating to retail marijuana stores. RECOMMENDATION: Approval of the Ordinance. Attachments: Minutes of the Planning and Zoning Commission March 25, 2015 Meeting Staff Report for Text Amendment TA-15-01 Notice of Public Hearing