HomeMy WebLinkAboutOrd 786 I -
ORDINANCE NO. 786
AN INTERIM URGENCY ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF CATHEDRAL CITY,
CALIFORNIA, EXTENDING THE TEMPORARY
MORATORIUM ON THE APPROVAL OF NEW
APPLICATIONS FOR DISPENSARIES FOR A PERIOD OF
SIX MONTHS
WHEREAS, the City of Cathedral City has consistently worked to encourage
economic development and to maintain the economic vitality of the community by
encouraging development that provides significant tax revenue to the City and that
provides significant employment opportunities for City residents wherever possible; and
WHEREAS, the City of Cathedral City has attempted to balance various land
uses to accomplish these goals; and
WHEREAS, City of Cathedral City Ordinances 772 and 774 amended the City's
Municipal Code to substantially change the City's regulation of medical cannabis
businesses, including but not limited to removing the provision that capped the number
of dispensaries permitted to operate in the City to no more than three; and
WHEREAS, the City began accepting applications for dispensaries under
Ordinances 772 and 774 on April 1, 2016, and as of December 1, 2016, applications for
19 new dispensaries have been received; and
WHEREAS, of those 19 proposed dispensaries:
• 10 have received a medical cannabis license and conditional use
permit from the Planning Commission to operate from the City .(with
one currently on appeal to the City Council);
• 1 has received a medical cannabis license and is awaiting Planning
Commission consideration of their conditional use permit application;
• 6 are awaiting a determination on their license application; and
• 2 have been denied a license and/or conditional use permit from the
Planning Commission (with one on appeal to the City Council).
WHEREAS, Ordinances 772 and 774 limited the zones where dispensaries can
locate to the I-1 Light Industrial District Zone, the CBP-2 Commercial Business Park
District Zone, or the PCC Planned Community Commercial District Zone, and further
restricts the locations where dispensaries can locate by requiring dispensaries to be set
back certain distances from residential zones, East Palm Canyon Drive, and schools,
day-care centers, and youth centers; and
WHEREAS, the combination of the limited locations where dispensaries may
locate in the City and the large volume of applications for dispensaries that have been
received has resulted in numerous dispensaries seeking to locate within very close
proximity of each other; and
WHEREAS, residents and business owners in the areas where large
concentrations of dispensaries are seeking to locate have raised concerns regarding the
potential negative secondary impacts of locating a large amount of dispensaries within a
relatively small area, including but not limited to property crimes, loitering, public
consumption of cannabis, drugged driving, and business displacement; and
WHEREAS, the City of Cathedral City has been presented with testimony that
Ordinances 772 and 774 have had the unintended consequence of creating a "bubble"
in the real estate market in the areas where dispensaries are allowed, which has
caused or will cause existing businesses to relocate outside of the City, either
voluntarily or involuntarily, because dispensary operators are willing to pay a premium
for real estate in these areas; and
WHEREAS, it is unknown if the market for medical cannabis in Cathedral City
will support the continued operation of the large number of the dispensaries that are
seeking to operate in the City, which will result in vacancies; and
WHEREAS, the City Council is concerned with the possibility that existing, long-
standing, desirable, tax-generating businesses may relocate outside of the City to make
way for dispensaries that may go out of business in a relatively short amount of time
due to the intense competition in the medical cannabis market creating an imbalance in
economic and social opportunities within the City; and
WHEREAS, while Ordinances 772 and 774 allow a conditional use permit for a
dispensary to be denied based on an "undue concentration" of dispensaries, as
evidenced by negative secondary effects stemming from dispensaries, the rapid pace at
which proposed dispensaries are seeking conditional use permits means that many
dispensaries may be approved before a significant number of the dispensaries are open
for business and there is a chance to determine if any negative secondary effects are
occurring; and
WHEREAS, Government Code Section 65030 declares that the intent of the
State Legislature to use California's land resources in ways which are economically and
socially desirable in an attempt to improve the quality of life in California. To that end,
the State Legislature has also declared that land use decisions should be made with full
knowledge of other economic implications. (Government code Section 65030.2.); and
WHEREAS, the City Council recognizes that proposed dispensary operators that
have already submitted applications for a dispensary license and conditional use permit
have likely made substantial economic investments in their proposed dispensaries in
good faith reliance on the City's ordinances; and
WHEREAS, to the City's knowledge the eight pending dispensary applications
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are all for locations that were already vacant prior to the adoption of Ordinances 772
and 774, or were vacant due to a voluntary decision by the previous occupant to move
their business; and
WHEREAS, the City Council finds that in the interest of fairness the eight
dispensary applications that are pending may be approved, if they meet the standards
for approval in Chapters 5.88 and 9.108 of the City Code, as an additional eight
dispensaries is a small enough number that it does not present an immediate threat to
the public health, safety or welfare; and
WHEREAS, on November 23, 2016, the City Council adopted Ordinance No.
785, as an urgency ordinance imposing a temporary moratorium on the approval of new
dispensary applications and adopted its findings of fact; and
WHEREAS, Ordinance No. 785, by law, is effective for only 45 days and expires
on January 7, 2016; and
WHEREAS, pursuant to Government Code section 65858, the City may, after
notice and a public hearing, extend the moratorium enacted by Ordinance No. 785 for
up to ten months and fifteen days; and
WHEREAS, the City Council continues to find that there is a current and
immediate threat to the public health, safety, and welfare based on the findings herein
and the findings contained in Ordinance No. 785, and upon that basis has determined
that an extension of the moratorium enacted under Ordinance No. 785 is warranted.
NOW THEREFORE, THE CITY COUNCIL ORDAINS AS FOLLOWS:
SECTION 1: The City Council finds and determines the following:
(a) The recitals set forth above are hereby adopted as findings of the City
Council; and
(b) The factual basis for extending the moratorium also includes the findings set
forth in Ordinance No. 785, which is adopted herein by reference; and
(c) Pursuant to Government Code section 65858(d), the City has issued a report
relative to the steps taken to alleviate the conditions that necessitated the
adoption of Ordinance No. 785, and mad the report available on the City's
website on December 1, 2013; and
(d) The City requires more time to study the impacts of dispensaries and to
adopt, if necessary, amendments to the Code to so as to ensure a proper
balance of land uses in areas where dispensaries are allowed, and to avoid
blight, a temporary moratorium on the approval of new dispensaries must be
enacted; and
(e) Given the harm to the public health, safety and welfare that may occur if the
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status quo is not preserved, the City desires to extend the moratorium approved
in Ordinance No. 785.
SECTION 2: Pursuant to the authority granted to the City Council by California
Government Code Section 65858 to protect the health, safety and general welfare of
the residents of the City of Cathedral City, the City Council hereby extends the
moratorium on the approval of any new dispensaries contained in Section 2 of
Ordinance No. 785 for a period of six months from the expiration date of January 7,
2017, for a new expiration date of July 7, 2017.
SECTION 3: Government Code Section 65858 authorizes the City's first
extension of this moratorium to be up to ten months and fifteen days in length. The City
is voluntarily choosing at this time to only extend the moratorium for a period of six
months, and reserves its right to further extend this moratorium for a period of four
months and fifteen days.
SECTION 4: Pursuant to Government Code § 65858(d), ten (10) days prior to
the expiration or any extension of this ordinance, the City Council will issue a written
report describing the measures taken to alleviate the conditions which led to the
adoption of this ordinance.
SECTION 5: If any section, sentence, clause or phrase of this ordinance is for
any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
ordinance. The City Council hereby declares that it would have passed this ordinance
and adopted this ordinance and each section, sentence, clause or phrase thereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses
or phrases be declared invalid or unconstitutional. Further, the City Council hereby
declares that this ordinance neither is intended to nor shall it impair the obligation of
existing contracts
SECTION 6: The Mayor shall sign and the City Clerk shall certify to the passage
and adoption of this ordinance and shall cause the same to be published and posted
pursuant to the provisions of law in that regard.
PASSED, APPROVED AND ADOPTED this 14th day of December, 2016, by the following
vote:
Ayes: 4 - Council Members Aguilar, Carnevale and Kaplan; Mayor Henry
Noes: 1 - Mayor Pro Tem Pettis
Abstain: 0
Absent: 0
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Stanley Henry, Mayor
City of Cathedral City
APPROVED AS TO FORM AND
LEGAL CONTENT:
1►
Eric S. Vail, City Attorney
ATTEST:
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— How- I, City Clerk
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