File #: 23-047    Version: 1 Name:
Type: Public Hearing Item Status: Passed
File created: 1/3/2023 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 2/6/2023 Final action: 2/6/2023
Title: SUBJECT: Appeal #1 & #2 of the Planning Commission's Approval of Commercial Cannabis Business Permit (CCBP) #22-02R for Retail Cannabis at 1111 Motel Drive by JIVA MCE, LLC. and Edwin Kainth REPORT IN BRIEF JIVA MCE, LLC, and Edwin Kainth have separately appealed the Planning Commission's approval of Commercial Cannabis Business Permit #22-02R (Culture Merced Dispensary) for a retail cannabis facility at 1111 Motel Drive. RECOMMENDATION City Council - Adopt a motion: A. Granting or denying the appeal of JIVA MCE, LLC.; and, B. Granting or denying the appeal of Edwin Kainth; and, C. Providing direction to staff regarding findings to grant or deny each appeal, with or without prejudice; and, D. Directing staff to proceed with either the approval of CCBP #22-02R or the continuation of the retail cannabis selection process, including direction on how to proceed with the tied score for second-highest scoring application.
Attachments: 1. Letter of Appeal from JIVA MCE, LLC and Supplements.pdf, 2. Letter of Appeal from Edwin Kainth, 3. Planning Commission Meeting Minute Excerpt (November 9, 2022)Att 3-PC Minute Excerpt.pdf, 4. Planning Commission Resolution #5000 (Conditions of Approval), 5. Planning Commission Staff Report #22-840 (CCBP #22-02R), 6. Ordinance #2532, 7. JIVA MCE Additional Supplement, 8. Presentation.pdf

Report Prepared by: Stephani Davis, Development Services Technician II, Development Services Department

 

Title

SUBJECT: Appeal #1 & #2 of the Planning Commission’s Approval of Commercial Cannabis Business Permit (CCBP) #22-02R for Retail Cannabis at 1111 Motel Drive by JIVA MCE, LLC. and Edwin Kainth

 

REPORT IN BRIEF

JIVA MCE, LLC, and Edwin Kainth have separately appealed the Planning Commission’s approval of Commercial Cannabis Business Permit #22-02R (Culture Merced Dispensary) for a retail cannabis facility at 1111 Motel Drive.

 

RECOMMENDATION

City Council - Adopt a motion:

 

A.  Granting or denying the appeal of JIVA MCE, LLC.; and,

 

B.  Granting or denying the appeal of Edwin Kainth; and,

 

C.  Providing direction to staff regarding findings to grant or deny each appeal, with or without prejudice; and,

 

D.  Directing staff to proceed with either the approval of CCBP #22-02R or the continuation of the retail cannabis selection process, including direction on how to proceed with the tied score for second-highest scoring application.

 

Body

ALTERNATIVES

1.  Deny both appeals, affirming the approval of CCBP #22-02R; or,

2.  Deny both appeals, modifying the approval of CCBP #22-02R (modifications to be specified in the motion); or,

3.  Grant one or both of the appeals, reversing the approval of CCBP #22-02R and directing staff on how to proceed with the retail cannabis permit selection process; or,

4.  Continue to a future City Council meeting (date and time to be specified in the motion).

 

AUTHORITY

City of Merced Ordinance #2532/Merced Municipal Code Section 20.44.170 (Attachment 6).

 

DISCUSSION

Background

 

In January 2022, Staff began the application process for commercial cannabis retail proposals in order to fulfill the vacant cannabis permit within the City that became available when Harvest abandoned their commercial cannabis permit. The City received eleven (11) applications; 9 of the submitted applications succeeded to Phase 2 Merit-based review with the City’s Selection Panel consisting of the City Manager, the Police Chief, and the Director of Development Services. At the conclusion of the Selection Panel scoring, CCBP #22-02R (Culture Cannabis Merced), proposed at 1111 Motel Drive, received the highest rank with an average score of 95.33.

 

On November 9, 2022, a public hearing was held and CCBP #22-02R was presented to and approved by the Merced Planning Commission, which approved the permit with a 5-2 vote. The Planning Commission minutes, resolution, and staff report are included at Attachments 3,4, and 5.

 

On November 15, 2022, JIVA Life (Appellant #1) submitted a request to appeal the Planning Commission decision for approval. On November 16, 2022, Edwin Kainth (Appellant #2) submitted a request to appeal the Planning Commission decision for approval. Both appeals were submitted within the 5-business day deadline for appeals as offices were closed Friday, November 11, 2022, for Veterans Day.

 

Description

 

Commercial Cannabis Business Permit #22-02R proposes to use the location at 1111 Motel Drive to operate a cannabis retail business for both medicinal and adult use cannabis and cannabis-related products, including delivery services. Staff recommended approval with conditions held in Resolution #5000 (contained in Staff Report #22-840 at Attachment #5), approved by the Planning Commission with modifications to the site plan to close access off Pine Street.

 

JIVA MCE, LLC. (Appellant #1) asserts that the City Selection Panel failed to properly score JIVA’s application (CCBP #22-09R) and as a result, the Planning Commission improperly considered and approved CCBP #22-02R (Attachment 1).

 

Edwin Kainth (Appellant #2) asserts that the operation of CCBP #22-02R would negatively impact the businesses in the surrounding areas and exacerbate existing traffic issues within the area for both the nearby residents and the businesses (Attachment 2).

 

The City Council will hold a public hearing on February 6, 2023, for both appeals and close the public hearing. City Council’s review of this appeal shall be a de novo review pursuant to Merced Municipal Code 20.44.170L(4). As such, the Council will make its own determination based on what is presented to them during the hearing, and this shall be the final decision. The City Council will need to provide direction to staff regarding Findings for approval or denial of each appeal. Resolutions to adopt the final action and findings will be presented to the City Council for adoption at the following City Council meeting, but no new public hearing will be required at that time.

 

IMPACT ON CITY RESOURCES

No appropriation of funds is needed.

 

ATTACHMENTS

1.  Letter of Appeal from JIVA MCE, LLC and Supplements

2.  Letter of Appeal from Edwin Kainth

3.  Planning Commission Meeting Minute Excerpt (November 9, 2022)

4.  Planning Commission Resolution #5000 (Conditions of Approval)

5.  Planning Commission Staff Report #22-840 (CCBP #22-02R)

6.  Ordinance #2532

7.  JIVA MCE Additional Supplement

8.  Presentation