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HomeMy WebLinkAbout09133Amended 6/12/2017 ORDINANCE NO. 9133 AN ORDINANCE ADDING A NEW PROVISION TO CHAPTER 11 OF TITLE XI OF THE PUEBLO MUNICIPAL CODE RELATING TO EARLY ISSUANCE OF RETAIL MARIJUANA LICENSES 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 11-11-323 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby added to read as follows: Sec. 11-11-323. Early Issuance of a License. (a) A retail marijuana establishment may apply for early issuance of a license under this provision. Following the Authority’s approval of an application under Section 11-11-307 for a retail marijuana store, or a finding that an application shows a prima facie case for approval under Section 11-11-310, an applicant may request license issuance prior to completing the required minimum improvements per Section 17-4-51(e). Such a request must be made within one hundred twenty (120) days from the date of application approval for retail marijuana stores or prima facie approval for all other classes of retail marijuana licenses, or within any extended period granted by the Marijuana Authority. (b) Before issuing any retail marijuana license, the Authority shall hold a hearing at which the applicant has the burden to prove it complies with all pertinent rules and regulations. In addition to other portions of the municipal code and associated rules and regulations, it is required that: (1) The application is complete, and the requirements of Sections 11-11-301 and 11-11-308 are met, except that Section 11-11-308(7)(b) shall not apply, and all required and requested supplemental documentation is submitted. (2) The applicant has met the requirements necessary to obtain a retail marijuana license in the Rule 800 Series. (3) The applicant has provided documentation for compliance with the Rule 800 Series, depending on the type of license, and the documents have been approved by the necessary agencies (inspection forms). (4) The area where the proposed activity will take place on the licensed premises is the same as shown on the application documents and construction plans for the associated license. (5) No outstanding violations of city regulations or licensing requirements exist on the property where the proposed establishment is located. (6) The city’s portion of the application fee has been received from the state, and the applicant has paid the operating fee and any applicable additional fees. (7) For a retail marijuana store, the applicant must provide proof of a surety bond in the amount of twenty thousand dollars ($20,000.00) for sales and use taxes due. (8) The applicant, the applicant's financiers, principals, registered manager, and employees are persons of good character and record. (9) The applicant, principals, registered manager and employees are trained or experienced in, and able to comply with, the requirements of city and state law pertaining to retail marijuana establishments. (10) There is no good cause for denial of the license. (11) Any conditions or requirements imposed by the State of Colorado are completed. (12) The premises has parking adequate to comply with state and federal requirements, specifically handicap parking compliant with ADA regulations. (13) The premises is completed and complies with all health, building, plumbing, mechanical, fire and other codes, statutes and ordinances, as shown by plan approvals and completed inspections from the City’s Department of Transportation, City’s Department of Public Works, City’s Department of Wastewater, Regional Building Department, Pueblo Fire Department, and Pueblo City-County Health Department. (14) The applicant provide a maintenance plan for improvements required to be installed as part of the Conditional Use Permit. (15) For new building construction, the location provides 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) as amended. For new building construction, the location provides erosion and sediment control in compliance with City Stormwater Criteria and Colorado Department of Public Health and Environment requirements. All such work must be completed and inspected prior to license issuance. (16) For existing buildings, the completed plan approvals for the location provide drainage, detention, and water quality in compliance with City Stormwater Criteria as amended. For existing buildings, the completed plan approvals for the location provide erosion and sediment control in compliance with City Stormwater Criteria and Colorado Department of Public Health and Environment requirements. The applicant must still comply with City Stormwater Criteria and the temporary requirements thereof whenever making alterations to the premises. (17) Plan approvals are complete for all minimum improvements required by Section 17-4-51(e), including, but not limited to, the required façade treatments, landscaping, stormwater concerns, extraneous parking, public improvements, extraneous lighting, and signs. (c) The issues at the hearing shall be limited to the foregoing and any other pertinent legal requirements, but shall not include whether persons favor or approve of retail marijuana, or favor or oppose retail marijuana licenses in general. The Authority may deny a petition for early issuance if the applicant fails to demonstrate compliance with any rule. (d) The Authority may deny an application if there is any indication that the applicant will not meet the imposed conditions. The Authority may impose on the license any condition related to the license, licensed premises or adjacent grounds that is reasonably necessary to protect public health, safety, or welfare, but must condition the license upon: (1) Full completion and inspection of all items required under Section 17-4- 51(e), including: a. Installation of landscaping according to Section 17-4-7 of Title XVII, PMC, regardless of the applicability stated in Section 17-4-7(b)(2). b. Compliance with Sections 17-4-46(e)(7) and (f), PMC of the Large Scale Development Standards. The Administrative Official has the authority to require alternative requirements for architecture, in cases where the requirements of Sections 17-4-46(e)(7) and (f) are not appropriate for a particular building or structure. c. Providing parking according to Section 17-4-43(b), Section 17-4-44, or Section 17-4-45, PMC. 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. d. Providing 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.” e. Providing existing buildings drainage, detention, and water quality in compliance with City Stormwater Criteria as amended. This includes, providing existing buildings erosion and sediment control in compliance with City Stormwater Criteria and Colorado Department of Public Health and Environment requirements. (2) The licensee sending to the Authority timely notice of completions and inspections as they are finished. (e) The Conditional Use Permit associated with a granted license must also impose at least the same conditions as those governing the license. The Authority in its sole discretion may impose any timeline by which the conditions must be met, but in no case shall it impose any period longer than one (1) year. If the Authority does not impose a time period, the new licensee shall complete all conditions in the three hundred thirty (330) days following license issuance. The licensee shall then conduct any remaining required inspections within the thirty (30) days following that period, prior to the yearly renewal. All conditions, approvals, and inspections must be completed prior to the renewal date. The licensee must provide written notice to the Authority as each condition is met. The Authority shall not give any extension past the renewal date. (f) The licensee must comply with all license conditions. Compliance with the licensing conditions shall be considered at the renewal hearing, or earlier as determined by the Authority. At that time, the licensee must prove full compliance with the imposed conditions. The Authority may impose any sanction for delays in completing the conditions, or for any failure of the licensee. (g) Licensee’s failure to meet any condition shall show licensee’s inability to operate in a highly-regulated industry. If the licensee has not met all conditions by the time of the annual renewal, the Authority shall revoke the license. In accordance with Section 11-11-406(d), a licensee whose license is revoked shall: (i) close the licensed premises and dispose of all retail marijuana on the licensed premises, and (ii) not be eligible to apply for a new retail marijuana license of any type for a period of two (2) years from the date of revocation. The Authority in its discretion may find the revocation indicative of poor character and record. (h) In addition to the posting requirements of Section 11-11-313, the licensee shall post with the license the imposed conditions in a notice at least twenty- four (24) inches by twenty-four (24) inches in letters at least one (1) inch in height for the first year of an early issued license. (i) The early issuance process for a retail marijuana establishment creates added strain on the city by truncating timelines and requiring substantial additional work from employees. In order to defray the costs of early issuance, an additional nonrefundable administrative fee of five thousand dollars ($5,000.00) shall be required when the applicant applies. The fee is reasonably related and proportional to the costs of the services provided and shall not generate additional revenue for the City. (j) All issues not covered by this provision, including requirements for hearings and notice, shall be governed by other sections of this Code and the Retail Marijuana Rules and Regulations. Licensee shall bear sole liability for and indemnify City against any damage or claim of damage, caused by or alleged to be caused by licensee’s early license issuance or failure to comply with any regulation. SECTION 2. 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 3. 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 4. 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 May 22, 2017 BY: Ed Brown PASSED AND APPROVED: June 12, 2017 City Clerk’s Office Item # R-3 BACKGROUND PAPER FOR PROPOSED ORDINANCE COUNCIL MEETING DATE: May 22, 2017 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 ADDING A NEW PROVISION TO CHAPTER 11 OF TITLE XI OF THE PUEBLO MUNICIPAL CODE RELATING TO EARLY ISSUANCE OF RETAIL MARIJUANA LICENSES SUMMARY: Attached for consideration is a text amendment that will add a new provision to Chapter 11 of Title XI of the Pueblo Municipal Code relating to retail marijuana establishments and providing for early issuance of licenses. PREVIOUS COUNCIL ACTION: None. BACKGROUND: The current Retail Marijuana Code and the associated Retail Marijuana Rules and Regulations contain a detailed process for the licensing of retail marijuana establishments, which can require a lengthy application period. The process was designed to ensure that license applicants are of good character and record, and able to conduct business in a highly-regulated industry. Each step safeguards the health and welfare of the public. In April 2017, the Planning Department was tasked with amending the code to streamline the process and allow early issuance of retail marijuana licenses. Representatives from all affected departments met on April 12, 2017 to discuss the issue and what changes could be made. It was determined that the majority of the current code was necessary to protect public health and safety, and only certain architectural and aesthetic requirements for the premises could be delayed and later fulfilled after license issuance. FINANCIAL IMPLICATIONS: Each retail marijuana establishment licensed under the proposed provision strains city resources by truncating timelines and requiring substantial additional work from employees. In order to defray the costs of early issuance, an additional nonrefundable administrative fee of five thousand dollars ($5,000.00) shall be required when the applicant applies. The fee is reasonably related and proportional to the costs of the services provided and shall not generate additional revenue for the City. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. ALTERNATIVES: If City Council does not approve this Ordinance, Chapter 11 of Title XI of the Pueblo Municipal Code will not be amended to reflect the proposed changes relating to the licensing of retail marijuana establishments. RECOMMENDATION: Approve the Ordinance.