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HomeMy WebLinkAbout01262026 City Council Work Session PacketJoint with Session with Planning & Zoning Monday, January 26, 2026 at 5:30 p.m. Topic: Marijuana Regulations Work Session Packet Table of Contents Work Session Request 2 Memo from Community Development 3 Draft Ordinance 2026-XXX Marijuana Establishments 6 Ordinance 2016-005 Commercial Marijuana Establishments...13 AMCO Regulations posted separately City of Seward PO Box 167 Seward, Alaska 99664 ?{(arks+ Start Nave... December 31, 2025 Kris Peck, City Clerk City of Seward Re: Schedule a work session of the Seward City Council Mr. Clerk, Please consider this my written request as required by Seward City Code 2.10.030 (D)(1) for a work session of the Seward City Council on January 26th at 5:30 p.m., for the following item: • Planning and Zoning Joint Work Session- Marijuana Regulations Thank you, QtfAncciu.re Sue McClure, Mayor [co -sponsored by Council Member Barnwell ] 2 Memo Date: To: From: Subject: City Council Memorandum January 26, 2026 City Council Daniel Meuninck, Community Development Director Marijuana Code Organization and Policy Options — Joint Work Session with Planning & Zoning Commission The purpose of this memorandum is to support the upcoming joint work session between the City Council and the Planning and Zoning Commission by: 1. Identifying policy pathways available to Council, including maintaining the status quo, pursuing voter action, or advancing ordinance amendments; 2. Summarizing the Planning and Zoning Commission's recent recommendations related to marijuana code amendments; 3. Providing staff perspective on organizational structure and regulatory tools within the Seward City Code; and 4. Offering a framework to help guide a constructive, policy -focused discussion during the joint work session. Policy Pathways: Council has several options moving forward including: • Option 1: Pursue legislative changes via ordinance, including amendments similar in concept to those recommended by the Planning and Zoning Commission; • Option 2: Prohibit future marijuana establishments through ordinance; • Option 3: Refer marijuana policy to the voters. • Option 4: Maintain the current framework For historical context, Ordinance 2016-005 is included to illustrate that the City adopted its initial local marijuana regulations within the first two years following state legalization. This background is provided to place the current discussion in context and to recognize that marijuana regulation has continued to evolve over time and is appropriately subject to periodic review. P&Z's Recommendation: The Planning and Zoning Commission has undertaken a review of Seward's marijuana land -use regulations and developed recommended amendments to Seward City Code Title 15 (Planning and Land Use Regulations). The draft ordinance reflecting those recommendations is included in the packet. The upcoming work session provides an opportunity to discuss whether and how those 3 recommendations may inform a focused, policy -driven regulatory framework for Seward. Staff Perspective on Organizational Structure: Staff encourages Council and the Commission to focus primarily on the policy outcomes they would like to see reflected in the code. Administration will work with the City Attorney to ensure that any adopted regulations are placed in the most appropriate sections of the City Code. Marijuana regulation in Seward currently spans multiple titles, including: • Title 8 — Business licensing, operational requirements, and regulatory compliance • Title 9 — THC extraction equipment and fire/life safety considerations • Title 15 — Land use, zoning districts, and locational compatibility Staff's primary organizational concern is ensuring that Title 15 remains focused on land -use compatibility (where a use is appropriate), while operational characteristics (how a business operates) are addressed in Title 8. Policy Areas More Suited to Title 15 as these provisions address where marijuana uses are appropriate, which is the core function of Title 15: • Zoning districts where marijuana establishments are allowed • Separation distances from sensitive uses • Conditional use vs. permitted outright determinations Policy Areas More Suited to Title 8 (Business Regulations and Licensing) as these provisions regulate how marijuana businesses operate, rather than where they are located: • On -site consumption (indoor vs. outdoor, operational standards) • Walk-up or drive -through window service • Hours of operation • Caps on the number of marijuana licenses citywide • THC potency limits or product -type restrictions • Any additional AMCO regulations the City wishes to be more strict on The Commission's draft ordinance includes revised definitions for marijuana establishments that differ from those used by the State of Alaska through the Alcohol & Marijuana Control Office (AMCO). Staff offers this as a discussion point: • Aligning definitions with state terminology can reduce confusion for applicants, staff, enforcement, and the public. • Departing from state definitions is permissible but may require clear policy justification and ongoing coordination. Staff recommends alignment with state terminology unless Council determines that locally tailored definitions better serve Seward's policy objectives. 4 Framework: If Council elects to move forward with legislative changes, staff recommends structuring the process to keep discussion focused on regulatory frameworks and community -wide impacts rather than individual operators. This approach helps ensure that any future ordinance reflects deliberate policy choices rather than reactions to individual cases, and supports a fair, transparent, and defensible legislative process. 5 Sponsored: Sorensen Introduction: Month XX, 2026 Public Hearing: Month XX, 2026 Enactment: Month XX, 2026 CITY OF SEWARD, ALASKA ORDINANCE 2026-XXX AN ORDINANCE OF THE SEWARD CITY COUNCIL, AMENDING SEWARD CITY CODE 15.10.226 — LAND USES ALLOWED FOR MARIJUANA ESTABLISHMENTS WHEREAS,; and WHEREAS,; and WHEREAS,; and WHEREAS,; and WHEREAS,; and WHEREAS,; and WHEREAS,; and NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code Title 15.10.140 Definitions is hereby amended to read as follows (new language is in bolded italics and underlined, and deleted language is stricken): B. Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter, unless otherwise provided or the context otherwise requires: 54. Marijuana. Marijuana means "marijuana" as that term is as defined in Alaska Statute 17.38.900 and any amendments thereto, means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate; "marijuana" does not include fiber produced from the stalks, oil or cake made from the seeds of the plant, sterilized seed of the plant that is incapable of germination, the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products, or industrial hemp as defined in AS 03.05.100 6 CITY OF SEWARD, ALASKA ORDINANCE 2026-XXX 55. Marijuana establishment. Marijuana establishment means a A marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store as those terms are defined in AS 17.38.900 and any amendments thereto. a. Cultivation facility, limited. A licensed limited marijuana facility has the same privileges and prohibitions set forth in 3 AAC 306.405(a)(b)(c) and can perform the same activities as a licensed standard marijuana cultivation facility except it must have fewer than 500 square feet under cultivation (3 AAC 306.400). Mafijuana-eCultivation facility, standard. Marijuana cultivation facility means aAn entity registered to plant, propagate, cultivate, harvest, prepare, cure, package, store, and label and package marijuana,: and to sell marijuana to licensed retail marijuana stores, to licensed marijuana product manufacturing facilities, and to other licensed marijuana cultivation facilities, but not to consumers..-, subject to all the privileges and prohibitions described in 3 AAC 306.600-3 ACC 603.675. 1. Limited marijuana cultivation facilityA limited marijuana cultivation facility has the privileges set forth at 3 AAC 305.405(a) and (b), and is subject to the prohibitions at 3 AAC 306.405(c), except that it must have fewer than 500 square feet under cultivation. lac. Marijuana pProduct manufacturing facility, heavy. Marijuana product n entity registered to purchase harvested marijuana from a cultivation facility; extract, process, manufacture, prepare, and package marijuana products; and transfer or sell marijuana and marijuana products to other marijuana product manufacturing facilities, a marijuana testing facility, or and to retail marijuana stores, but not to consumers. There is a high potential of creating noise, vibration, dust, smoke, fumes, odor, glare, toxins, or other environmental impacts on surrounding properties or uses because of the nature of its equipment, operations, processes, materials, and products. cL Product manufacturing facility, light. An entity registered to engage in the manufacture, predominantly from previously prepared and/or finished marijuana products or parts that, because of the nature of its equipment, operations, processes, materials, and products, has little or no potential of creating noise, vibration, dust, smoke, fumes, odor, glare, or other environmental impacts on surrounding properties or uses. € e. Retail marijuana store. Retail marijuana store means aAn entity registered to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities, and to sell marijuana and marijuana products to consumers. f Retail store with onsite consumption endorsement, indoor. An entity authorized to sell specific marijuana products and amounts for consumption at the time of purchase only within an indoor area of the building designated as the marijuana consumption area. 7 CITY OF SEWARD, ALASKA ORDINANCE 2026-XXX & Retail store with onsite consumption endorsement, outdoor. An entity authorized to sell specific marijuana products and amounts for consumption at the time of purchase within a designated outdoor space surrounded by a sight- obscurine wall or fence. h. Retail store walk-up or drive -through exterior window pick-up. A window attached to the licensed marijuana retail store through which a customer on foot or in a vehicle may purchase marijuana products. Ei. Marijuana testing facility. Marijuana testing facility means aAn entity registered to analyze and certify the safety and potency of marijuana. 56. Marijuana products. Marijuana products means cConcentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures. Section 2. Seward City Code Title 15.10.226 Land Uses Allowed Table is hereby amended to read as follows (new language is in bolded italics and underlined, and deleted language is stricken): H. Marijuana establishments as defined in section SCC $15.10.140.B.55 are allowed in accordance with SCC Land Uses Allowed tTable §15.10.226 of this chapter subject to the following: 1. The facility owner or operator has submitted a license application to the State of Alaska for the corresponding type of marijuana establishment prior to operation, and maintains a current license from the state at all times the facility is in operation. 2. Marijuana establishments shall not to be located within 500 feet of the entrance of any building where religious ceremonies are regularly held, a correctional facility, recreational facility or youth center licensed by the state or local government, park, playground, athletic field, community center, childcare facility, housing facility owned by a public housin' authority, homeless and transient shelter, habilitative care facility, or within 1,000 feet of any school. The distance specified in this subsection must be measured by the shortest pedestrian route from the public entrance of the building in which the licensed premises would be located to the outer parcel boundaries of the school, recreation or youth facility or to the main public entrance of the building in which religious services are regularly held, or the correctional facility. The burden of proof demonstrating that the facility meets the required separation distances is the responsibility of the marijuana establishment owner or operator. 3. A marijuana establishment shall be in a permanent structure with a valid certificate of occupancy. No marijuana establishment shall be authorized in a vehicle, trailer, 8 CITY OF SEWARD, ALASKA ORDINANCE 2026-XXX mobile food unit, standalone intermodal shipping container (i.e. conex unit), or temporary structure. 34. All marijuana establishments shall meet all other criteria in this the Seward City Code and in Alaska Statutes and Alaska Administrative Codes. TABLE Zoning District Designations The following zoning district abbreviations are provided for information and interpretation: RR = Rural, very low density single-family residential R1 = Single-family, low density residential R2 = Single and two-family, medium density residential R3 = Single, two and multi -family, high density residential UR = Urban residential, a mix of residential uses and low impact home professional offices OR = Office residential AC = Auto and neighborhood oriented, light commercial HC = Harbor commercial CB = Central business district - dense downtown commercial I = Industrial RM = Resource management - partially developable lands subject to floodplains and steep slopes INS = Institutional, public, quasi -public uses P = Parks Table 15.10.226. Land Uses Allowed Key: O — Use Permitted Outright H — Home Occupation C — Use Requires Conditional Use Permit P — Use Requires Administrative Permit Blank — Use Prohibited 9 CITY OF SEWARD, ALASKA ORDINANCE 2026-XXX Zoning Districts Principally Residential Principally Commercial Principally Public Uses RR RI R2 R3 UR OR AC HC CB I RM INS P Marijuana establishment, cultivation facility 9 0 0 Marijuana INTENTIONALLY LEFT BLANK establishment, cultivation facility, limited Marijuana establishment, limited cultivation faeility 14 14 1=1 1=1 1=1 H 1 14 14 14 Marijuana INTENTIONALLY LEFT BLANK establishment, cultivation facility, standard Marijuana establishment, predttet manufacturing facility (hazardous materials) E Marijuana INTENTIONALLY LEFT BLANK establishment, product manufacturing facility, heavy Marijuana establishment, product manufacturing facility, light (non C C 0 C hazardous materials) Marijuana establishment, retail store 0 0 C 0 C 0 C Marijuana establishment, retail store with onsite consumption endorsement; indoor 0 0 C 0 C 0 C 10 CITY OF SEWARD, ALASKA ORDINANCE 2026-XXX Zoning Districts Principally Residential Principally Commercial Principally Public Uses RR RI R2 R3 UR OR AC HC CB I RM INS P Marijuana INTENTIONALLY LEFT BLANK establishment, retail store with onsite consumption endorsement: outdoor Marijuana establishment, retail 0 0 0 0 &tore with on site eensumptieti endorsement; outdoor Marijuana INTENTIONALLY LEFT BLANK establishment, retail store walk-up or drive -through exterior window pick-up Marijuana establishment, testing facility 0 0 0 0 0 C Section 3. This ordinance shall take effect immediately upon adoption. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA the XX day of Month, 2026. AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 11 CITY OF SEWARD, ALASKA ORDINANCE 2026-XXX Kris Peck City Clerk (City Seal) 12 1 1 1 Sponsored by: Hunt Introduction: June 13, 2016 Public Hearing: June 27, 2016 Enactment: June 27, 2016 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 AN ORDINANCE OF THE CITY COUNCIL OF SEWARD, ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE TITLES 8, 9, AND 15, REGARDING REQUIREMENTS AND STANDARDS FOR COMMERCIAL MARIJUANA ESTABLISHMENTS IN THE CITY OF SEWARD WHEREAS, during the November 4, 2014 general election, Alaska voters approved initiative Ballot Measure 2, an Act to Tax and Regulate the Production, Sale and Use of Marijuana, which provided for the State development of regulations and requirements for commercial marijuana establishments, and legalized possession and personal use of marijuana by persons 21 years of age or older; and WHEREAS, Ballot Measure 2 allows municipalities in the State, including the City of Seward ("City"), to prohibit and/or implement regulations governing the number, time, place and manner of marijuana cultivation facilities, marijuana testing facilities, marijuana product manufacturing facilities, and retail marijuana stores (marijuana establishments); and WHEREAS, the State of Alaska has developed laws and regulations, codified as Alaska Statute 17.38 and 3 AAC 306.005-3 AAC 306.990, for marijuana establishments requiring, among other things, public notices and hearings for license applications, security plans, site - specific plans, and the privileges of and prohibitions for each of the types of license; and WHEREAS, at the Seward City Council March 14, 2016 work session, the City administration was directed to draft regulations that complemented but did not duplicate State regulations, and that to the extent practical worked within the existing framework of land uses, zones and classifications rather than creating new ones; and WHEREAS, the City's current Building, Fire and Mechanical Codes are considered adequate to address these establishments with the exception that additional controls are needed in the Fire Code regarding extraction systems at manufacturing facilities; and WHEREAS, the United States Department of Justice has issued guidance (the "Cole" memoranda dated February 14, 2014, and August 29, 2013) describing marijuana -related federal enforcement priorities, including "Preventing the distribution of marijuana to minors" and "Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use;" and 13 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 2 of 9 WHEREAS, the City Council finds that the goal of protecting the public health, safety and welfare, and those priorities in the Cole memo, are furthered by increasing the buffer zone around schools and by limiting the hours of operation beyond the minimum buffer zones and maximum hours of operation set forth in State Statute. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code Title 8 is amended by adding a new chapter as follows: (Deletions are ; Additions are Bold Italic Underline) Chapter 8.25 — Marijuana establishments 8.25.010. - Definitions. As used in this chapter, unless the context otherwise requires, the following terms shall have the meanings defined herein: (a) "Marijuana" means "marijuana" as that term is defined in AS 17.38.900 and any amendments thereto. (b) "Marijuana establishment" means a "marijuana establishment" as that term is defined in AS 17.38.900 and any amendments thereto but includes a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store as those terms are defined in AS 17.38.900 and any amendments thereto. 8.25.015 Compliance with state laws and regulations No person may own or operate a marijuana establishment within the City without first being licensed by the State of Alaska, and the establishment license must be maintained in force continuously throughout the time the establishment operates. All marijuana establishments shall be operated in full compliance with state laws and regulations. It shall be the owners' and/or operators' responsibility to be aware of and to comply with any and all laws, rules and regulations adopted by any duly authorized agency of the State and the City. 14 1 1 1 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 3 of 9 8.25.020 Local regulatory authority established. The City Council shall be the Local Regulatory Authority, as that term is used in Alaska Statutes Chapter 17.38. As the local regulatory authority, Council is authorized to: (a) Review and submit recommendations to any federal or state agency regardiir marijuana establishment license applications: (b) Designate a body, entity or person to review or comment upon marijuana establishment license applications; (c) Draft laws, regulations, and policies regarding marijuana establishments and marijuana use within the City. 8.25.025. - Marijuana establishment application review. (a) Once the City receives notification from a state agency that a marijuana establishment application is complete: Council may recommend approval, denial, or approval with conditions of any application for a marijuana establishment. (b) Council shall not recommend approval of any marijuana establishment application unless the following conditions have been satisfied: (1) The City Finance Department confirms that all accounts for utilities, taxes and assessments for the persons or corporate entity named in the application are current: and (2) The Kenai Peninsula Borough verifies that all sales and property tax accounts for the persons or corporate entity named in the application are current. (3) The applicant shall be in compliance with all city safety requirements. 8.25.030. — Hours of operation Retail marijuana establishments shall not conduct any business on, or allow consumers or customers access to the establishment's licensed premises between the hours of 2:00 a.m. and 10:00 a.m. of any day. 15 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 4 of 9 Section 2. Seward City Code Title 9 is amended by adding a new chapter as follows: (Deletions are ; Additions are Bold Italic Underline) Chapter 9.30 — Marijuana extraction equipment 9.30.010. - General provisions. All licensed marijuana processing facility extraction equipment using hazardous materials must be approved by the City prior to operation within the City. 9.30.015. — Listed equipment. A list of pre-engineered and approved systems is kept at the Seward Fire Department and available during business hours. 9.30.020. — Equipment approval. (a) When no equipment listing criteria exists and for non -listed extractions systems, equipment manufacturers may submit a Master Engineering Report to the Seward Fire Department for approval of their equipment. (b) An Alaska licensed Professional Engineer is required to prepare a site -specific report. The report shall include the following information: 1. The proposed or existing address of the location where the equipment will be operated, the make and model, serial number, and any other pertinent information specific to that equipment as requested by the city; 2. The installation of the equipment will meet all applicable AME and NFPA standards for the operating pressures it will be subjected to; 3. The equipment has pressure relief valves on any trapped as sections; 16 1 1 1 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 5 of 9 4. That all hose fittings, vacuum pumps, and all other ancillary components of the equipment are compatible with the specific flammable gas used in the equipment; (c) The engineering report is required by the 2012 International Fire Code, adopted as the Seward Fire Code, and shall be signed and sealed by a responsible Alaska licensed Professional Engineer. All equipment shall be operated strictly in accordance with the manufacturer's instructions. (d) Prior to the operation of the equipment, the City shall issue written approval of the engineering report required under this section. 9.30.025. — Modification of equipment. Any modification of listed or approved equipment other than routine maintenance or replacement of an identical replacement part voids the approval of the extraction equipment unless the modification is approved by the City in writing. Modifications that require approval include but are not limited to re -piping the system, addition of pumps, replacing components with non -identical components, and using unapproved gases. Section 3. Seward City Code Title 15 is amended by adding to the Definitions and Land Uses Allowed sections and renumbering as appropriate, as follows: (Deletions are Beld-Striirethrough; Additions are Bold Italic Underline) 15.10.140 - Definitions. A. General interpretation. 1. Words used in the present tense include the future tense. 2. The singular number includes the plural. 3. The word "person" includes a corporation as well as an individual. 4. The word "lot" includes the word "plot" or "parcel." 5. The term "shall" is always mandatory. 6. The word "used" or "occupied" as applied to any land or building shall be construed to include the words "intended," "arranged," or "designed to be used or occupied." 17 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 6 of 9 B. Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter, unless otherwise provided or the context otherwise requires: 1. Accessory building. A detached structure that: a. Is clearly incidental to and customarily found in connection with a principal building or use; b. Is subordinate to and serves a principal building or use; c. Is subordinate in area, extent or purpose to the principal building or use served; d. Contributes to the comfort, convenience or necessity of occupants, business or industry in the principal building or use served; and e. Is located on the same or adjacent lot under the same ownership as the principal building or use served. An accessory building shall be considered to be a part of the main building when joined by a common wall or connected by a breezeway to the main building. Accessory building means any structure regardless of type of foundation or base support, including skid -mounted or other moveable structures. (Accessory or mother-in-law apartment. See Dwelling, Efficiency apartment) 2. Agriculture. Commercial farming, dairying, pasturage, horticulture, floriculture, viticulture, or animal and poultry husbandry including buildings used to shelter farm implements, hay, grain, poultry, livestock or other farm produce in which there is no human habitation and which is not used by the public. > 51. Manufacturing, heavy. A use engaged in the basic processing and manufacturing of materials or products predominately from extracted or raw materials; or a use engaged in storage of or manufacturing processes using flammable or explosive materials; or storage or manufacturing processes that potentially involve hazardous or commonly recognized offensive conditions. 52. Manufacturing, light. A use engaged in the manufacture, predominantly from previously prepared material, of finished products or parts, including processing, fabrication, assembly, treatment, packaging, incidental storage, sales and distribution of such products, but excluding basic industrial processing. 53. Marijuana. Marijuana means "marijuana" as that term is defined in Alaska Statute 17.38.900 and any amendments thereto. 1 1 1 18 1 1 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 7 of 9 54. Marijuana establishment. Marijuana establishment means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store as those terms are defined in AS 17.38.900 and any amendments thereto. a. Marijuana cultivation facility. Marijuana cultivation facility means an entity registered to cultivate, prepare, and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. 1. Limited marijuana cultivation facility. A limited marijuana cultivation facility has the privileges set forth at 3 AAC 305.405(a) and (b), and is subject to the prohibitions at 3 AAC 306.405(c), except that it must have fewer than 500 square feet under cultivation. b. Marijuana product manufacturing facility. Marijuana product manufacturing facility means an entity registered to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers. c. Marijuana testing facility. Marijuana testing facility means an entity registered to analyze and certify the safety and potency of marijuana. d. Retail marijuana store. Retail marijuana store means an entity registered to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities, and to sell marijuana and marijuana products to consumers. 55. Marijuana products. Marijuana products means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures. (***Clerk's Note: subsequent sections will be renumbered accordingly***) 15.10.225. - Land uses allowed. (a) Table 15.10.225, land uses allowed, is incorporated herein by reference and the restrictions contained therein are mandatory unless otherwise modified by this chapter. (See tables at the end of this title.) 19 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 8 of 9 (b) Lodging as defined in section 15.10.140B. is allowed in accordance with table 15.10.225 of this chapter and subject to the following conditions: (h) Marijuana establishments as defined in section 15.10.140.B.53 are allowed in accordance with table 15.10.225 of this chapter subject to the following: (1) The facility owner or operator has submitted a license application to the State of Alaska for the corresponding type of marijuana establishment prior to operation, and maintains a current license from the State at all times the facility is in operation. (2) Marijuana establishments shall not to be located within five hundred (500) feet of the entrance of any building where religious ceremonies are regularly held, a correctional facility, recreational facility or youth center licensed by the State or local government, or within one thousand (1000) feet of any school The distance specified in this subsection must be measured by the shortest pedestrian route from the public entrance of the building in which the licensed premises would be located to the outer parcel boundaries of the school, recreation or youth facility or to the main public entrance of the building in which religious services are regularly held, or the correctional facility. The burden of proof demonstrating that the facility meets the required separation distances is the responsibility of the marijuana establishment owner or operator. (3) In this Title, Standard or Limited Marijuana Cultivation Facility meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes are classified as a Greenhouse(s)/Commercial, except that a Limited Marijuana Cultivation Facility as an accessory use secondary to a residence may be classified as a Home Occupation use. (4) In this Title, a Marijuana Testing Facility meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes is classified as an Office - Business or Professional use. (5) In this Title, a Marijuana Product Manufacturing Facility or a Marijuana Concentrate Manufacturing Facility using hazardous materials in the manufacturing process and meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes is classified as a Manufacturing - Heavy use. Facilities not using hazardous materials in the manufacturing process are classified as a Manufacturing, Light use. 20 1 1 1 CITY OF SEWARD, ALASKA ORDINANCE 2016-005 Page 9 of 9 (6) In this Title, a Retail Marijuana Store meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes is classified as a Business - Retail Sales and Service use. Section 4. This ordinance shall take effect ten days following its enactment. ENACTED by the City Council of the City of Seward, Alaska, this 27th day of June, 2016. THE CITY OF SEWARD, ALASKA can Bardarson, Mayor AYES: Casagranda, Keil, Butts, Squires, McClure, Altermatt, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: ity Clerk (City Seal) y, CMC 21 Council Agenda Statement Meeting Date: June 13, 2016, June 27, 2016 From: Jim Hunt, City Manager Ron Long, Assistant City Manager Agenda Item: Commercial Marijuana Establishments Ordinance BACKGROUND & JUSTIFICATION: Alaska voters approved initiative Ballot Measure 2 at the November, 2014 general election, an Act to Tax and Regulate the Production, Sale and Use of Marijuana. (The measure also legalized the personal use and possession of marijuana by persons 21 years of age and older, but this ordinance deals only with the commercial aspects of the measure.) Since passage the State has formed a Marijuana Control Board (MCB) and has promulgated regulations for the industry, found at Alaska Statute 17.38, consistent with the ballot measure. The work done by the State is detailed and comprehensive; persons holding an interest in the proposed business and the site - specific business proposal are vetted by the MCB after a public notification, posting and public hearing process conducted by the State. It would be difficult or impossible for the Sate to adopt regulations that uniformly satisfy local land use requirements across the state, and the ballot measure specified certain levels of control be reserved for the local jurisdictions as applicable. Therefore some choices can be made by Seward, including whether or not to prohibit some or all commercial marijuana enterprises by ordinance or initiative, whether to act as the Local Regulatory Authority, and whether to add time place, manner or number restrictions to enterprises licensed by the State. The City Council held a work session March 14, 2016, with direction for administration to draft regulations that to the extent practical complement but do not duplicate the State regulations, names the City Council as the Local Regulatory Authority, expands buffer zones around schools to 1,000' and limits hours of operation for retail establishments, and that would if possible work within the existing land use classification and zoning regulations of the City. Code changes will be needed in order to accomplish these goals. Title 8, Business Regulations and Licensing, describes the City's role and authority as regards alcohol establishments, which aligns with the Ballot Measure 2 intent to "regulate marijuana like alcohol", would establish similar authorities for the City and regulations specific to State -licensed marijuana establishments, including hours of operation. Proposed changes to Title 9, Health and Safety, would address hazardous substances and equipment that might be used at a marijuana product manufacturing facility by allowing only equipment previously engineered, tested and approved in other states that have legalized commercial marijuana establishments. Or, an applicant may submit a Master Engineering Report for their system and then have the installation approved by an Alaska licensed engineer. Title 15, Planning and Land Use Regulations, is sufficiently scalable and adaptable to accommodate these enterprises with minimal amendment, adding definitions and a land use classification, which includes the expanded buffer zone, as drafted in the ordinance. 28 22 CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan: X 2. Strategic Plan: X 3. Other (list): ATTORNEY REVIEW: Yes X No FISCAL NOTE: These proposed revisions do not result in immediate or measurable additional costs to the City, or additional revenues. Approved by Finance Department: Yitteiti� RECOMMENDATION: Council enact Ordinance 2016-005, approving modifications to Seward City Code Titles 8, 9 and 15, regarding requirements and standards for commercial marijuana establishments. 29 23