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G50-14 Ordinance No. G50-14 AN ORDINANCE GRANTING CONDITIONAL USE APPROVAL TO PERMIT THE ESTABLISHMENT OF A MEDICAL CANNABIS DISPENSING ORGANIZATION IN THE GI GENERAL INDUSTRIAL DISTRICT (1330 Crispin Drive, Unit 215) WHEREAS, written application has been made requesting conditional use approval to permit the establishment of a Medical Cannabis Dispensing Organization [SR] in the GI General Industrial District at 1330 Crispin Drive, Unit 215; and WHEREAS, the Planning & Zoning Commission conducted public hearings on August 4, 2014 and October 6, 2014 after due notice by publication of each; and WHEREAS, the Community Development Department and the Planning & Zoning Commission have submitted their Findings of Fact; and WHEREAS, the Community Development Department recommended approval, subject to the conditions as set forth below; and WHEREAS, the Planning & Zoning Commission recommend denial; and WHEREAS, the City Council of the City of Elgin concurs with the findings and recommendation of the Community Development Department. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That the City Council of the City of Elgin hereby adopts the Findings of Fact offered by the Community Development Department within their Conditional Use Review, dated October 6, 2014, a copy of which is attached hereto and made a part hereof by reference as Exhibit A. Section 2. That a conditional use to permit the establishment of a Medical Cannabis Dispensing Organization [SR] in the GI General Industrial District at 1330 Crispin Drive, Unit 215, and legally described as follows: UNIT 215 IN CRISPIN COMMONS CONDOMINIUM AS DELINEATED ON A SURVEY OF THE FOLLOWING DESCRIBED REAL ESTATE: LOT 21 AND LOT 22 OF FOX BLUFF CORPORATE CENTER, BEING A SUBDIVISION OF PART OF SECTION 27, TOWNSHIP 41 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN ACCORDING TO THE PLAT THEREOF RECORDED ON AUGUST 19, 1992 AS DOCUMENT NO. 92K59007, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS (EXCEPT THAT PART DESCRIBED AS FOLLOWS): COMMENCING AT THE SOUTHEAST CORNER OF LOT 21; THENCE NORTH 50 DEGREES 46 MINUTES 57 SECONDS WEST ALONG THE SOUTHERLY LINE OF SAID LOT 21 , A DISTANCE OF 31.00 FEET TO THE POINT OF BEGINNING; THENCE NORTH 39 DEGREES 13 MINUTES 03 SECONDS EAST A DISTANCE OF 156.00 FEET; THENCE NORTH 50 DEGREES 46 MINUTES 57 SECONDS WEST AND PARALLEL WITH THE NORTHERLY LINE OF SAID LOT 21, A DISTANCE OF 460.50 FEET; THENCE SOUTH 39 DEGREES 13 MINUTES 03 SECONDS WEST, A DISTANCE OF 71.33 FEET; THENCE SOUTH O1 DEGREES 38 MINUTES 39 SECONDS EAST AND PARALLEL WITH THE WEST LINE OF SAID LOT 22, A DISTANCE OF 153.85 FEET TO A POINT ON THE SOUTH LINE OF SAID LOT; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE TO THE NORTH, HAVING AN ARC LENGTH OF 175.92 FEET AND A RADIUS OF 483.00 FEET, SAID CURVE BEING THE SOUTHEASTERLY LINE OF SAID LOTS 21 AND 22; THENCE CONTINUING SOUTHEASTERLY ALONG SAID LINE OF LOT 21 SOUTH 50 DEGREES 46 MINUTES 57 SECONDS EAST, A DISTANCE OF 187.79 FEET TO THE POINT OF BEGINNING. WHICH SURVEY IS ATTACHED AS EXHIBIT D TO THE DECLARATION OF CONDOMINIUM RECORDED JAN. 7, 2009 AS DOCUMENT 2009K001013. PIN: 06-27-251-023 Commonly known as: 1330 Crispin Drive, Unit 215, Elgin, IL 60123 be and is hereby granted subject to the following conditions: 1. The conditional use for the Medical Cannabis Dispensing Organization [SR] is limited to Unit 215 of 1330 Crispin Drive. 2. Parking for the Medical Cannabis Dispensing Organization [SR] to be located in Unit 215 shall be limited to only the surface parking lot located immediately northeasterly of the 1330 Crispin Drive building in which Unit 215 is located. 3. Substantial conformance to the July 11, 2014 packet of information submitted by Peter Bazos on behalf of Salveo Health & Wellness, LLC, which includes but is not limited to a Development Application, Statement of Purpose and Conformance, and referenced Exhibits A-F, as well as the August 22, 2014 packet of information submitted by Peter Bazos, which includes but is not limited to a plat of survey and revised legal description. In the event of any conflict between such documents and the terms and conditions of this - 2 - ordinance or other applicable ordinances, the terms of this ordinance or other applicable ordinances shall supersede and control. 4. In addition to the Security Plan detailed within Exhibits A and C, substantial conformance with the representations of the applicant to Elgin Police Department regarding security, including regular and continuous consultation, as recorded within the memorandum dated July 28, 2014 from Commander Lalley to Chief Swoboda. 5. Compliance with all applicable codes and ordinances. Section 3. That the conditional use granted herein shall expire if not established within one year from the date of passage of this ordinance. Section 4. That this ordinance shall be in full force and effect immediately after its passage and publication in the manner provided by law. David J. Kapt , M or Presented: October 8, 2014 Passed: October 8, 2014 Vote: Yeas: 6 Nays: 3 Recorded: October 8, 2014 Published: October 10, 2014 /RgSFWM�a,, r s `Al�, Kimberly Dewis, City Clerk ` g - 3 - ORDINANCE NO. G50-14, EXHIBIT A October 6, 2014 CONDITIONAL USE REVIEW Community Development Department City of Elgin,Illinois GENERAL INFORMATION Petition Number: 34-14 Requested Action: Conditional Use Approval Property Location: 1330 Crispin Drive, Unit 215, Fox Bluff Corporate Center Current Zoning: GI General Industrial District Applicant: Salveo Health& Wellness, Ltd. Staff Coordinator: Marc Mylott, AICP; Director of Community Development UPDATE ON PROCEEDINGS This public hearing is a further public hearing on the original application submitted by Salveo Health & Wellness, Ltd. (hereinafter "Salveo"). The Planning & Zoning Commission first conducted a public hearing on this application on August 4, 2014. After that date, in an August 15, 2014 letter to the Mayor& City Councilmembers, Attorney Charles Muscarello, representing a group of area property owners, suggested that owners wishing to comment on the application were not afforded enough time to prepare for the public hearing or to speak at the public hearing. On September 10, 2014, City Council voted to return the application to the Planning & Zoning Commission for the purpose of conducting a further public hearing. All items submitted to the Planning & Zoning Commission in advance of and at the August 4, 2014 public hearing, as well as any testimony offered at the August 4, 2014 public hearing, remain a part of the record. As such, this information should be considered, along with any new documents and testimony received on October 6, 2014, when the Planning & Zoning Commission offers city council its recommendation. For convenience,the following items have been provided as attachments to this staff report: • Original August 4, 2014 Planning&Zoning Commission packet; • Transcripts of August 4, 2014 public hearing plus Petitioner's Exhibit 1; and • August 4, 2014 Findings of Fact. In addition, by the attached letter dated August 22, 2014, counsel for the applicant Peter Bazos supplemented and/or amended the record by submitting the following items, all of which have also been provided as attachments to this staff report: Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 • Revised legal description, clarifying that the request for conditional use pertains only to 1330 Crispin Drive, Unit 215, and not the common areas of the condominium project; • Letter from Alan J. Coulson, PC with map, depicting the distance of 1330 Crispin Drive, Unit 215, from residentially zoned areas; • Plat of Survey dated August 20, 2008, recorded January 7, 2009; and • Declaration of Condominium for Crispin Commons Condominium, dated September 29, 2008, recorded January 7, 2009. Finally, the owner of 1330 Crispin Drive, Unit 215 has also submitted a text amendment which purports to "clarify the original purposes and intent of City Council" regarding medical cannabis dispensing organizations by specifying the way in which setbacks are measured (Petition 45-14). Staff has no concerns with and supports that application for text amendment. PROJECT OVERVIEW Salveo requests approval of a conditional use to establish a medical cannabis dispensing organization within 1,500 square feet (Unit 215) of the existing office/warehouse/industrial building located at 1330 Crispin Drive. The property is located within the Fox Bluff Corporate Center. The location complies with all setback requirements established by the zoning ordinance amendment passed by City Council in February 2014, and the Police Department finds the security and lighting plan acceptable. Recall that, in August 2013, the State of Illinois enacted the Compassionate Use of Medical Cannabis Pilot Program Act (hereinafter referred to as "the Act") to allow patients with debilitating medical conditions to use medical cannabis without being subject to arrest, prosecution, or denial of any right or privilege. The Act, which became effective January 2014, provides for the establishment of medical cannabis cultivation centers and dispensing centers throughout the state and establishes that local governments may not "unreasonably prohibit" such establishments. In response to the Act, city council amended the zoning ordinance to provide for such uses as conditional uses generally within industrial districts and to require setbacks from other particular uses and zoning districts. On July 18, 2014, the state Joint Committee on Administrative Rules approved rules for the Medical Cannabis Pilot Program and determined that Kane County would be allocated two of the 60 permitted dispensaries within Illinois.' Said rules give relevancy to the location of other proposed or existing dispensaries to ensure that dispensaries are "geographically dispersed."" On September 19, 2014, staff received an application for conditional use for a dispensary at 585 Tollgate Road, but that application cannot be processed because the property is zoned PAB, Planned Area Business. Medical cannabis dispensing organizations are only conditional uses within the GI General Industrial and ORI Office Research Industrial zoning districts. To date, staff has received no applications for a cultivation center. Staff recommends approval of the application, subiect to the conditions outlined at the end of this report. More detail is provided within the "Additional Information" section of this report. 2 Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 LIST OF EXHIBITS ATTACHED • Letter from Peter Bazos dated August 22, 2014 including but not limited to the following attachments: • Revised legal description, clarifying that the request for conditional use pertains only to 1330 Crispin Drive, Unit 215, and not the common areas of the condominium project; • Letter from Alan J. Coulson, PC with map, depicting the distance of 1330 Crispin Drive, Unit 215, from residentially zoned areas; • Plat of Survey dated August 20, 2008, recorded January 7, 2009; and • Declaration of Condominium for Crispin Commons Condominium, dated September 29, 2008, recorded January 7, 2009; • Original August 4, 2014 Planning& Zoning Commission packet; • Transcripts from the August 4, 2014 public hearing plus Petitioner's Exhibit 1; • August 4, 2014 Findings of Fact; and • Notice of Hearing Response Form from Al Andreini, 1250 Crispin Drive, date stamped September 4, 2014. ADDITIONAL INFORMATION The February 2014 zoning ordinance amendment established medical cannabis dispensing organizations as conditional uses within the GI General Industrial and ORI Office Research Industrial zoning districts, but it prohibits the use within the ARC Arterial Road Corridor Overlay district or within 1,000 feet of the property line of a pre-existing public or private preschool or elementary or secondary school or day care center, day care home, group day care home, part day child care facility, area zoned for residential use, emergency shelter, or public park. Finally, the amendment requires an applicant for said conditional use to include a security and outdoor lighting plan and for the Police Department to review that plan and forward its recommendation regarding the plan to the Planning & Zoning Commission prior to the public hearing for conditional use. As to the proposed dispensary, the information below is summarized from the application: Salveo would provide medical marijuana products for registered patients in the Illinois Medical Cannabis Pilot Program, and the products offered would depend on the supply available from Illinois cultivators. Only patients certified by the state with valid I.D. cards would be authorized inside the dispensary. Illinois's certification process is based on doctor recommendations given only to patients suffering from one of less than 40 debilitating conditions. Subjective conditions such as back pain, insomnia, or general pain are not conditions that would qualify. Patients I.D. cards would be linked instantaneously to the Department of Health and the Illinois State Police (which is mandated by law) so that, if an I.D. cannot be validated, the patient would not be granted access to the dispensary. 3 Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 Salveo would create at least 12 jobs, assuming 100 patients per day, including two armed security guards during operating hours and one armed security guard during off hours. Salveo has retained The MedMen to train its employees and ensure proper protocols are in place at the dispensary. The MedMen is a Los Angeles-based company that has operated over 20 dispensaries in California. The company is recognized as an industry leader in providing management and training services to marijuana dispensaries across the country. Employees would have the knowledge needed to counsel patients and advise on the best strains and methods of administration for particular conditions. The training program would begin with an intensive new employee training and continue with ongoing education of at least eight hours per quarter. Salveo would only be open during the hours authorized by the Illinois Department of Financial and Professional Regulation. Although the rules are still being finalized, draft rules already released authorize hours of operation from 6:00 a.m. to 8:00 p.m. Exterior lighting would illuminate the area at all times and ensure that cameras are able to record high-quality footage 24 hours per day. Secure rooms, such as the security room and the medical marijuana storage room, would be accessible only to authorized employees, and the doors to these rooms would be controlled by key-card and individualized key-code access locks. This method ensures an unauthorized person in possession of a key-card would still be denied access, and it also allows for the electronic recording of all who access those areas. These rooms would be equipped with safes to add another layer of security to the medical marijuana products inside the facility. Cameras would be placed so that no blind spots exist inside the facility or on its perimeter. Perimeter and interior cameras would record 24-hours per day, and motion sensing lights would be installed to ensure that a clear picture can be obtained at all times. Footage would be kept for at least 90 days, or as long as is regulated by state and local authorities. The surveillance system would be IP compatible, and authorized personnel would be able to view the feeds remotely. State and local authorities would also have 24-hour remote access to the security feed without prior permission. Salveo would also work with local authorities to ensure they have access to stored video, and Salveo security personnel would be in constant contact with local authorities regarding the premises and perimeter. The dispensary would include an advanced alarm system with intrusion detection at all possible points of entry, and each room would have "panic buttons" which can be activated by patients or employees during an adverse event. The alarm system would be monitored by a licensed alarm company, and local authorities would be notified immediately of any trips of the alarm. Exterior signage would be discrete and would not draw attention to the facility as a dispensary. Signage would be backlit and consist of only the words "Salveo Health & Wellness." No marijuana leaves or other paraphernalia would be visible anywhere in the dispensary or on any signage, either inside or outside the dispensary. The Community Development Department offers the following additional information: 4 Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 A. Zoning History. The subject property was annexed to Elgin as part of the Elgin State Hospital Annexation in 1969 and zoned M-1 Limited Manufacturing District. The subdivision known as Fox Bluff Corporate Center was established in 1992. At that time, the property was reclassified to ORI Office Research Industrial District as part of a comprehensive amendment to the zoning ordinance. This property was one of several lots within the subdivision that was further reclassified in 1993 to its current zoning classification of GI General Industrial district. Constructed in 2006, the 28,500 square- foot, single-story building contains 19 office/warehouse condo units. B. Surrounding Land Use and Zoning. The land in most all directions proximate to the subject property is zoned GI General Industrial, ORI Office Research Industrial, or PORI, Planned Office Research Industrial. That same land is either vacant or developed with various office, warehouse, and light industrial uses. The area to the northeast of the subject property is zoned CF and contains treatment ponds. C. Comprehensive Plan. The subject property is designated as "Office/Research/Industrial" by the City's Comprehensive Plan and Design Guidelines dated 2005. Such areas allow for a variety of industrial, manufacturing, assembly, warehouse, distribution,research and development, technology, corporate and support office, and limited employee-serving retail uses. These activities typically locate in business parks. Appropriate locations offer direct access to the arterial street system, and are in close proximity to highways, the freeway system and interchanges. D. Zoning District. The purpose of the GI General Industrial District is to provide for provide an alternate industrial environment for those industrial uses that do not require the location or environment of an ORI zoning district. E. Trend of Development. The subject property is located within an established industrial park, but the park still contains several vacant parcels. In fact, space exists upon the subject property for a second building. Owner plans show a potential second building located between the current building and Crispin Drive, facing Crispin Drive. This building, if ever built, would be designed in the same manner as the existing building, except the orientation would be flipped. STANDARDS FOR CONDITIONAL USES For consideration by the Planning & Zoning Commission, the Community Development Department offers the following findings regarding this application against the standards for conditional uses outlined within § 19.65.030: A. Site Characteristics Standard. The suitability of the subject property for the intended conditional use with respect to its size, shape, significant features including topography, watercourses, vegetation, and existing improvements. 5 Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 Findings. The proposed use meets the site characteristics standard in that this standard evaluates only the site at which the use is proposed. The subject property is a generally flat, uniquely shaped parcel containing approximately 4.3 acres. The property is improved with a one-story, office/warehouse/light industrial building and the associated paved parking. The site contains few natural features, except for young landscaping planted when the building was built in 2006. B. Sewer and Water Standard. The suitability of the subject property for the intended conditional use with respect to the availability of adequate municipal water, wastewater treatment, and storm water control facilities. Findings. The proposed use meets the sewer and water standard in that the subject property is served by municipal water and sanitary sewer systems. C. Traffic and Parking Standard. The availability of the subject property for the intended conditional use with respect to the provision of safe and efficient on-site and off-site vehicular circulation designed to minimize traffic congestion. Findings. The proposed use meets the traffic and parking standard. The subject property is located along the north side of Crispin Drive, east of McLean Boulevard. Crispin Drive is a local street, McLean Boulevard is an arterial street, and Bowes Road is a collector street which will eventually be extended east to Route 31. The application suggests 100 customers daily or approximately seven (7) per hour. The site contains well over 130 parking spaces, which is more than sufficient to accommodate the existing and future users of the building, including the anticipated demand from this proposed use. E. Location, Design, and Operation Standard. The suitability of the subject property for the intended conditional use with respect to it being located, designed, and operated so as to promote the purpose and intent of this title and chapter. Findings. The subject property is suitable for the proposed use with respect to it being located, designed, and operated so as to promote the purpose and intent of the zoning ordinance. The location meets the location and setback requirements from various other uses and zones established by the February 2014 zoning ordinance amendment which established a medical cannabis dispensing organization as a conditional use. Similarly, the police department finds the proposed security and outdoor lighting plan acceptable. The dispensary does not propose to include a drive-through facility. F. Historic Preservation Standard. Where applicable, the conditional use shall make possible an efficient contemporary use of, or a compatible improvement to a designated landmark or property located in a designated historic district while preserving those portions and features of the property which are significant to its historic, architectural, and cultural values to an historic preservation plan. Findings. This standard is not applicable as the subject property is not designated as a historic landmark nor is it located within a historic district. 6 Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 COMMENTS FROM OTHER CITY DEPARTMENTS The following are additional comments and/or requirements provided by other city departments regarding the applicability of life/safety and other codes as well as whether or not that applicability materially affects the project proposal. 1. Fire Department Comments that materially affect the site and/or building plans No comments. Comments that will be addressed during the Plan Review/Permitting process No comments. 2. Community Development—Building and Development Division Comments that materially affect the site and/or building plans No comments. Comments that will be addressed during the Plan Review/Permitting process If the conditional use is approved by City Council, the applicant will be required to submit tenant building plans for plan review and approval. 3. Community Development—Code Enforcement Division Comments that materially affect the site andlor building plans No comments. Comments that will be addressed during the Plan Review/Permitting process No comments. 4. Public Works -Engineering Division Comments that materially affect the site and/or building plans No comments. Comments that will be addressed during the Plan Review/Permitting process No comments. 5. Police Department Comments that materially affect the site and/or building plans Security and outdoor lighting plan acceptable; see memorandum dated July 28, 2014 from Commander Lalley to Chief Swoboda. Comments that will be addressed during the Plan Review/Permitting process Conformance with security and lighting plan and memorandum dated July 28, 2014 from Commander Lalley to Chief Swoboda. 7 Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 6. Public Works—Parks and Open Space Maintenance Comments that materially affect the site and/or building plans Not applicable. Comments that will be addressed during the Plan Review/Permitting process Not applicable. 7. Water Department Comments that materially affect the site and/or building plans No issues. Comments that will be addressed during the Plan Review/Permitting process No issues. ADDITIONAL PERMITS/APPROVALS REQUIRED Prior to the September 22, 2014 deadline, the applicant filed an application for authorization to register a dispensing organization with the Illinois Department of Financial and Professional Regulation (hereinafter referred to as the "Department"). Applicants may not submit for more than one dispensary within a district (here the district is Kane County), and applicants may submit separate applications for authorization in up to five districts."' The application needed only to include a copy of the current local zoning ordinance sections relevant to the dispensary and "[d]ocumentation, if any, of the approval, the conditional approval or the status of a request for zoning approval from the local zoning office that the proposed dispensary location is in compliance with the local zoning rules and the zoning provisions in Section 130 of the Act."'" If awarded authorization, the applicant would be required to then register with the Department, and it would be inspected by the Department before opening. RECOMMENDATION The possession of cannabis for any purpose is a federal offense, regulated under the Controlled Substances Act (21 U.S.0 § 811). However, the State of Illinois' Compassionate Use of Medical Cannabis Pilot Program Act establishes that local governments, including home rule units, may not "unreasonably prohibit" the cultivation, dispensing, and use of medical cannabis in accordance with said Act (410 ILCS 130/135). The location of the proposed medical cannabis dispensing organization meets the location and setback requirements from various other uses and zones both established by the February 2014 zoning ordinance amendment which established said organizations as conditional uses as well as the October 2014 text amendment proposed by the owner of 1330 Crispin Drive, Unit 215. Similarly, the police department finds the proposed security and outdoor lighting plan acceptable, and the dispensary does not propose to include a drive-through facility. The proposed location, design, and operation otherwise conforms to the criteria against which all conditional uses are evaluated (Section 19.65.030 of the Elgin Zoning 8 Conditional Use Review Community Development Department Petition 34-14 October 6, 2014 Ordinance). As such, the Community Development Department recommends approval of the conditional use, subiect to the following conditions: 1. The conditional use for the Medical Cannabis Dispensing Organization [SR] is limited to Unit 215 of 1330 Crispin Drive; 2. Parking for the Medical Cannabis Dispensing Organization [SR] to be located in Unit 215 shall be limited to only the surface parking lot located immediately northeasterly of the 1330 Crispin Drive building in.which Unit 215 is located; 3. Substantial conformance to the July 11, 2014 packet of information submitted by Peter Bazos on behalf of Salveo Health & Wellness, Ltd., which includes but is not limited to a Development Application, Statement of Purpose and Conformance, and referenced Exhibits A-F, as well as the August 22, 2014 packet of information submitted by Peter Bazos, which includes but is not limited to a plat of survey and revised legal description. In the event of any conflict between such documents and the terms and conditions of this ordinance or other applicable ordinances, the terms of this ordinance or other applicable ordinances shall supersede and control; 4. In addition to the Security Plan detailed within Exhibits A and C, substantial conformance with the representations of the applicant to Elgin Police Department regarding security, including regular and continuous consultation, as recorded within the memorandum dated July 28, 2014 from Commander Lalley to Chief Swoboda; and 5. Compliance with all applicable codes and ordinances. Respectfully Submitted, s/Marc S. Mylott Director of Community Development 'Information found at the State of Illinois website regarding the Medical Cannabis Pilot Program,July 31,2014;Section 1290.20 of document at hitp://www2.iiIinois.Pov/g v/mepp/Documents/Medical%2OCannabis%2ODFPR%20rulesOo2007l8l4 ME "Ibid. Section 1290.40. Ibid. 'v Ibid, Section 1290.50. 9