TOLLESON PLANNING AND ZONING COMMISSION MEETING MINUTES TUESDAY, JULY 5, :00 P.M.

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1 CALL TO ORDER TOLLESON PLANNING AND ZONING COMMISSION MEETING MINUTES TUESDAY, JULY 5, :00 P.M. Chair Caroline Gem Paxton called the Tolleson Planning and Zoning Commission Meeting to order at 6:03 P.M. ROLL CALL Chair Caroline Gem Paxton, Vice Chair Diana Ruiz, Commissioners Randy Camacho, Evangeline Diaz and Alfredo Gámez were present. Administration: City Manager Reyes Medrano Jr., Deputy Building Official Dale Crandell, Economic Development Director Jason Earp, Police Chief Lawrence Rodriguez, Deputy City Clerk Michelle Smythe, City Attorney Gary Verburg and City Clerk Crystal Zamora. BUSINESS FROM THE FLOOR - PUBLIC HEARINGS AND ACTION 1. Public Hearing Soliciting comments from interested parties in reference to a text amendment to the zoning code relating to medical marijuana dispensaries and medical marijuana cultivation facilities. Medical marijuana dispensaries are currently permitted in I-2 zoning districts. Medical marijuana cultivation facilities are currently not a permitted use in the zoning code. The text amendment will consider changes in the zoning districts permitting medical marijuana dispensaries and cultivation facilities, hours of operation for such dispensaries and facilities, spacing requirements from other uses for such dispensaries and facilities, security requirements and other matters related to land use requirements for medical marijuana dispensaries and cultivation facilities. (Ordinance No. 564 N.S.) Following the Public Hearing, Commission Action: Recommend/Reject Ordinance No. 564 N.S. of the Mayor and City Council of the City of Tolleson, Arizona, amending the city zoning ordinance, Chapter 12, Land Use, Article 12-4, allowing medical marijuana dispensary and cultivation facilities in Industrial I-1 zoning as a permitted use and amending requirements for medical marijuana dispensary and cultivation facilities relating to spacing requirements, square footage for such facilities, hours of operation, and security. The public hearing opened at 6:03 P.M. and closed at 6:38 P.M. City Manager Medrano Jr. provided information regarding Medical Marijuana Dispensaries. He stated when Medical marijuana was legalized there was not a

2 Tolleson Planning and Zoning Commission Meeting Minutes July 5, 2016 Page 2 of 5 lot of information, and the city code was intentionally written restrictive to protect the City. City Manager Medrano Jr. pointed out legalized medical marijuana dispensaries are regulated and can be very lucrative; this may be an opportunity to generate revenue. The information regarding dispensaries and cultivation centers changes continually. City Council met with the City Attorney to discuss options and receive recommendations. City Council directed staff to bring the issue to the Planning and Zoning Commission. Economic Development Director Earp shared that one month ago the City received the first of many calls from dispensary owner/operator/cultivators interested in Tolleson. Arizona State will be issuing 31 licenses for dispensaries, and the applications are due at the end of the month. Interested parties are looking for spots where they are allowed to go. This prompted the City to take a look at the current strict zoning rules, which only offer four places as they are written. He explained expected dispensary revenue is one million dollars per month, and the City would receive 2.5%. This would be for a very small footprint, and the revenue would grow with the addition of cultivation. City Manager Medrano Jr. discussed that this is an opportunity for the City to pay down its debt. Tolleson currently owes approximately 10.3 million dollars for an unfunded public safety retirement liability. Every city in the state owes a portion; the matter is currently in court. Based on the outcome, it is expected to go higher. Tolleson is currently putting one million dollars per year towards the liability. This revenue opportunity would negate using general funds and avoid raising sales tax, which would not be fair to citizens or businesses. Economic Development Director Earp shared that an applicant must find a place city zoning allows them to go and obtain permission from the property owner. Council direction to come before the Planning and Zoning Commission included: requesting zoning be kept to I-2; add I-1; include 1000 foot setbacks from schools, churches, rehabs and residential; and change the 2.5 mile radius to 1000 feet. He stated it is unlikely there would be more than one in all of Tolleson (yet this allows for a dispensary and a cultivation center). The limit on square footage would be removed to allow for cultivation; one cultivation center in Tucson is in a 175,000 square foot building. City Manager Medrano Jr. explained that CHAA is an acronym for Community Health Assessment Area. Tolleson belongs to two CHAAs, the Estrella CHAA to the Eastern Border and the Avondale CHAA to the West. The City just learned the Tolleson CHAAs were not selected for licenses which creates a different opportunity. An existing owner who has been in business for three years has the right to move their business. Three or four qualified owners would like to come to Tolleson. CHAAs are based on the number of cardholders in an area. Paradise Valley has the highest concentration of cardholders in Maricopa County.

3 Tolleson Planning and Zoning Commission Meeting Minutes July 5, 2016 Page 3 of 5 City Manager Medrano Jr. remarked that legalization of recreational use is expected to be on the November ballot. If passed the one million dollar revenue could become four million. Current owners of Medical marijuana dispensaries and cultivation centers will have the first right of refusal for recreational sales. The City would like to treat Medical marijuana as any other business. City Attorney Verburg explained the existing Ordinance is designed to be very restrictive. The draft Ordinance expands the zoning classification to include I-1 and I-2 and expands the current hours of operation limits of 9 a.m. to 5 p.m. Monday thru Friday to 7 a.m. to 9 p.m. and includes weekends. Other cities have found similar hours of operation limiting to working people. City Attorney Verburg included changing the restriction of 2.5 miles apart to 1000 feet apart; this would allow for a dispensary and a cultivation center to be close to each other. For cultivation purposes, the Ordinance proposes to amend current code by deleting subsections E3 and F removing square footage restrictions. The draft Ordinance further includes a change to the security requirement, from two guards to one with a requirement to submit a security plan to be approved by Tolleson Chief of Police. Economic Development Director Earp added the State requires heavy security at all locations. Businesses do not want to lose licenses; security is very important. Site visits showed a person is unable to enter without a Medical Marijuana Card. Sites are similar to a Doctor s office;, clients enter a lobby, and there is no access to the product. The product consists of edibles, oils and traditional forms. City Manager Medrano Jr. shared his experiences with the site visits; the clients were not the stereotype he might have expected to see. The clients seen were 90% seniors and transportation was provided by Dial-a-Ride. He expressed it was an eye opening experience and is not the taboo one might have predicted. City Attorney Verburg stated we are not hearing horror stories, there are very few calls for service of police. Economic Development Director Earp stated this will not place a negative stereo type on the Tolleson Community; it will not affect Tolleson any less if one is placed across the street. If Tolleson is too restrictive and they go across the street, the results will be the same without the ability to reap the benefit. Commissioner Gámez remarked there are many misconceptions of information. He stated the more latitude dispensaries have, the better it will be for our diverse citizens. Commissioner Gámez shared a personal experience and stated we need to move away from the stigma.

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