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HomeMy WebLinkAbout11273Docusign Envelope ID: 08C86CB3-BF5F-82CB-8316-1 A879F95D8F6 ORDINANCE NO. 11273 AN ORDINANCE IMPOSING A TWENTY -FOUR -MONTH MORATORIUM ON THE ACCEPTANCE OF APPLICATIONS FOR AND THE ISSUANCE OF NEW RETAIL MARIJUANA STORE FACILITY LICENSES UNDER CHAPTER 11 OF TITLE XI OF THE PUEBLO MUNICIPAL CODE WHEREAS, Pueblo is a home rule municipality organized and existing under Article XX of the Colorado Constitution, which vests in home rule municipalities plenary authority over matters of local concern, including the licensing and regulation of retail marijuana establishments; and WHEREAS, Section 3-13 of the Pueblo City Charter provides that City Council may provide for the issuance, suspension, or revocation of licenses and permits for regulatory purposes; and WHEREAS, Section 16(5)(f) of Article XVIII of the Colorado Constitution authorizes a locality to enact ordinances governing the time, place, manner, and number of marijuana establishment operations, and to prohibit the operation of retail marijuana stores through the enactment of an ordinance; and WHEREAS, C.R.S. § 44-10-104(3) provides that any local jurisdiction may enact ordinances or regulations governing the time, place, manner, and number of retail marijuana businesses, or may prohibit the operation of retail marijuana businesses through the enactment of an ordinance; and WHEREAS, City Council has adopted Chapter 11 of Title XI of the Pueblo Municipal Code to regulate retail marijuana establishments in Pueblo; and WHEREAS, Section 11-11-302(b) of the Pueblo Municipal Code caps the number of retail marijuana store facility licenses that may be issued at four (4) per retail marijuana district, and Section 11-11-103(15.5) of the Pueblo Municipal Code establishes two retail marijuana districts in Pueblo, together producing a citywide cap of eight (8) retail marijuana store facility licenses; and WHEREAS, Section 11-11-303(a) of the Pueblo Municipal Code expressly provides that every license issued under Chapter 11 of Title XI confers only a limited and conditional privilege and may be further regulated, limited, or completely extinguished at the discretion of City Council, without any compensation to the licensee; and WHEREAS, Section 11-11-303(b) of the Pueblo Municipal Code further provides that no licensee has any vested right to continue operating under the provisions of Chapter 11 of Title XI as they existed at the time the license was approved or issued, and that every license is subject to any ordinance or prohibition adopted after the license was approved or issued; and WHEREAS, one retail marijuana store facility license has been surrendered and additional surrenders are anticipated, and City Council desires to pause the acceptance of applications for and the issuance of new retail marijuana store facility licenses to permit further study of the appropriate number of retail marijuana store facility licenses in Pueblo before any additional licenses are issued; and Docusign Envelope ID: 08C86CB3-BF5F-82CB-8316-1 A879F95D8F6 WHEREAS, this Ordinance imposes a temporary moratorium of twenty-four (24) months, does not amend the codified text of Chapter 11 of Title XI of the Pueblo Municipal Code, and does not affect the renewal of existing retail marijuana store facility licenses, the transfer of ownership of existing retail marijuana store facility licenses, the change of location of existing retail marijuana store facility licenses, other classes of retail marijuana licenses, or any medical marijuana license; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 _ The recitals set forth above are true and correct and are incorporated as findings of the City Council in support of this Ordinance. SECTION 2. Beginning on the effective date of this Ordinance and continuing for a period of twenty- four (24) months thereafter, or until further action of City Council, whichever occurs first (the "Moratorium Period"), the Local Licensing Authority shall not accept any new application for, or issue, any retail marijuana store facility license under Chapter 11 of Title XI of the Pueblo Municipal Code. During the Moratorium Period, Section 11-11-302(b) of the Pueblo Municipal Code and Sections 11-11-307, 11-11-310, and 11-11-311 of the Pueblo Municipal Code, as they relate to new applications for retail marijuana store facility licenses, shall not require the acceptance of any new application or the issuance of any new license. SECTION 3 Nothing in this Ordinance affects, restricts, or delays any of the following: (a) the renewal of any retail marijuana store facility license issued before the effective date of this Ordinance under Section 11-11-317 of the Pueblo Municipal Code; (b) the transfer of ownership of any retail marijuana store facility license issued before the effective date of this Ordinance under Section 11-11-315 of the Pueblo Municipal Code; (c) the change of location of any retail marijuana store facility license issued before the effective date of this Ordinance under Section 11-11-315 of the Pueblo Municipal Code; (d) the acceptance, review, or issuance of any retail marijuana cultivation facility license, retail marijuana products manufacturer license, or retail marijuana testing facility license under Section 11-11-302(a)(1) through (3) of the Pueblo Municipal Code; or (e) any medical marijuana license issued under Chapter 10 of Title XI of the Pueblo Municipal Code. SECTION 4. Any application for a new retail marijuana store facility license that has been accepted by the Local Licensing Authority as complete but not yet approved as of the effective date of this Ordinance shall be held in abeyance during the Moratorium Period. Upon expiration of the Moratorium Period, the Local Licensing Authority shall resume review of any such application in accordance with Chapter 11 of Title XI of the Pueblo Municipal Code, unless the application is withdrawn by the applicant or is otherwise subject to a further ordinance of City Council. No application fee paid before the effective date of this Ordinance shall be refunded, and no additional fee shall be charged solely by reason of the abeyance imposed by this Section. Docusign Envelope ID: 08C86CB3-BF5F-82CB-8316-1 A879F95D8F6 SECTION 5. The officers and staff of the City are authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 6. If any provision of this Ordinance is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. .qFfTlnnl 7 This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on September 14, 2026. Final adoption of Ordinance by City Council on September 28, 2026. DocuSignedby: President of City Council Action by the Mayor: q Approved on ❑ Disapproved on 09/29/2026 based on the following objections: Action by City Council After Disapproval by the Mayor: ❑ Council did not act to override the Mayor's veto. ❑ Ordinance re -adopted on a vote of on 'Lsgnleid by: �t C4 Y' tar aa6i1.._ Mayor ❑ Council action on failed to override the Mayor's veto. President of City Council ATTEST Docusignedby: City Clerk Docusign Envelope ID: 08C86CB3-BF5F-82CB-8316-1 A879F95D8F6 City Clerk's Office Item # S1 COUNCIL MEETING DATE: September 28, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Harley Gifford, Deputy City Attorney SUBJECT: AN ORDINANCE IMPOSING A TWENTY -FOUR -MONTH MORATORIUM ON THE ACCEPTANCE OF APPLICATIONS FOR AND THE ISSUANCE OF NEW RETAIL MARIJUANA STORE FACILITY LICENSES UNDER CHAPTER 11 OF TITLE XI OF THE PUEBLO MUNICIPAL CODE SUMMARY: The attached Ordinance imposes a temporary moratorium of twenty-four (24) months on the acceptance of new applications for, and the issuance of, retail marijuana store facility licenses under Chapter 11 of Title XI of the Pueblo Municipal Code. The moratorium applies only to new retail marijuana store facility licenses. It does not affect the renewal of existing licenses, the transfer of ownership of existing licenses, the change of location of existing licenses, other retail marijuana license classes (cultivation facilities, products manufacturers, and testing facilities), or medical marijuana licenses. The Ordinance is not codified in the Pueblo Municipal Code. It stands as a stand-alone regulatory ordinance and expires by its own terms upon the earlier of twenty-four (24) months after the effective date or further action of City Council. PREVIOUS COUNCIL ACTION: None. BACKGROUND: Section 11-11-302(b) of the Pueblo Municipal Code caps the number of retail marijuana store facility licenses at four (4) per retail marijuana district. Section 11 -11-103(15.5) of the Pueblo Municipal Code establishes two retail marijuana districts in Pueblo, one located north of the Arkansas River and one located south of the Arkansas River. Together, these two sections produce a citywide cap of eight (8) retail marijuana store facility licenses. Docusign Envelope ID: 08C86CB3-BF5F-82CB-8316-1 A879F95D8F6 As of the date of this Ordinance, one retail marijuana store facility license has been surrendered and additional surrenders are anticipated. City Council desires to pause the acceptance and issuance of new retail marijuana store facility licenses for twenty- four (24) months to permit further study of the appropriate number of licenses in Pueblo before additional licenses are issued to fill any vacated slots. Colorado law expressly authorizes this action. Section 16(5)(f) of Article XVIII of the Colorado Constitution provides that a locality may enact ordinances governing the time, place, manner, and number of marijuana establishment operations, and may prohibit the operation of retail marijuana stores through the enactment of an ordinance. C.R.S. § 44-10-104(3) tracks that authority for retail marijuana businesses. Section 11-11-303 of the Pueblo Municipal Code further reserves to City Council the authority to further regulate, limit, or completely extinguish retail marijuana licenses at Council's discretion, and provides at Subsection (b) that no licensee has any vested right to continue operating under the provisions of Chapter 11 of Title XI as they existed at the time the license was approved or issued. The moratorium does not affect the renewal of existing licenses under Section 11-11- 317 of the Pueblo Municipal Code, the transfer of ownership of existing licenses under Section 11-11-315 of the Pueblo Municipal Code, or the change of location of existing licenses under Section 11-11-315 of the Pueblo Municipal Code. The moratorium does not affect any other class of retail marijuana license under Section 11-11-302(a) of the Pueblo Municipal Code and does not affect any medical marijuana license under Chapter 10 of Title XI of the Pueblo Municipal Code. Any application for a new retail marijuana store facility license that has been accepted by the Local Licensing Authority as complete but not yet approved as of the effective date of this Ordinance will be held in abeyance during the moratorium period. Upon expiration of the moratorium period, the Local Licensing Authority will resume review of any such application in accordance with Chapter 11 of Title XI of the Pueblo Municipal Code, unless the application is withdrawn by the applicant or is otherwise subject to a further ordinance of City Council. FINANCIAL IMPLICATIONS: There are no direct financial implications for the City from adoption of this Ordinance. During the moratorium period, the City will not receive application fees for new retail marijuana store facility licenses. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable Docusign Envelope ID: 08C86CB3-BF5F-82CB-8316-1 A879F95D8F6 ALTERNATIVES: If this Ordinance is not approved, the Local Licensing Authority remains obligated under Sections 11-11-307, 11-11-310, and 11-11-311 of the Pueblo Municipal Code to accept and process any application for a retail marijuana store facility license that would fall within the cap of eight (8) licenses set by Section 11-11-302(b), and to issue a license to any applicant that meets the requirements of the Chapter. City Council retains the authority to amend Section 11-11-302(b) of the Pueblo Municipal Code by separate ordinance to reduce the license cap on a permanent basis at any time. RECOMMENDATION: Approve the Ordinance. ATTACHMENTS: None