HomeMy WebLinkAboutResolution No. PZ2019-27APPROVAL OF RESOUL TION PZ2019-27 BY
PLANNING AND ZONING COMMISSION
REVERSED BY
BOARD OF ADJUSTMENTS DECISION
NOVEMBER 6, 2019
CASE NO. BA-19-01
"Vt1/tlje with a Past, City with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 I Fax: 907-283-3014
www.kenai.citv
CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION NO. PZ2019-27
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI
GRANTING A REQUEST FOR A CONDITIONAL USE PERMIT FOR A RETAIL MARIJUANA
STORE TO:
APPLICANT: ACG, LLC
USE: RETAIL MARIJUANA STORE
LEGAL DESCRIPTION: LOT 2, C PLAZA SUBDIVISION
PHYSICAL ADDRESS: 12516 KENAI SPUR HIGHWAY
KENAI PENINSULA BOROUGH PARCEL NUMBER: 04314013
WHEREAS, a complete application meeting the requirements of Kenai Municipal Code
14.20.150 was submitted to the City; and,
WHEREAS, the application affects land zoned as General Commercial (CG); and,
WHEREAS, the City of Kenai Planning and Zoning Commission conducted a duly advertised
public hearing on August 14, 2019, following requirements outlined in Kenai Municipal Code
14 .20.280 for public hearings and notifications; and,
WHEREAS, the Planning and Zoning Commission finds the application meets the requirements
for issuing a conditional use permit that are outlined in Kenai Municipal Code 14.20.150 and has
made the following findings:
1. The applicant meets criteria for conditional use permits in KMC 14.20.150(d}(1) The use is
consistent with the purpose of this chapter and the purposes and intent of the zoning district;
Criteria Met: The subject parcel is within the General Commercial (CG) Zone. Previous to the
use of the building as a marijuana product manufacturing facility and purchase by the
applicant , it was used to operate the Peninsula Moose Lodge until its closure in 2017. The
Peninsula Moose Lodge was a private social club with a restaurant and bar and is a
principally permitted use in the CG Zone. The marijuana product manufacturing facility would
continue to operate in the building proposed for a retail marijuana store . The product
manufacturing facility is not open to the public and would remain in an area of the building
without public access. The application notes the exterior of the existing building will remain
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largely unchanged with minimal new signage. The applicant did note the ir intent to modify the
conditional use permit for the marijuana manufacturing facility in the near future to expand
the square footage allowed for that activity in the building. A condition will be added to ensure
the marijuana manufacturing permit is modified when there is a change in the use or the
conditions of the use.
Retail marijuana stores are a conditional use within the CG Zone and require a conditional
use permit. KMC 14.20.120 outlines the intent of the CG zone to provide for areas with a
broad range of retail, wholesale, and service establishments, with uses regulated to
concentrate commercial development to the greatest extent possible. Residences and other
non-commercial uses are not principally permitted in the CG Zone. A retail marij uana store is
a commercial use that aligns with the intent of the CG Zone.
The retail marijuana store would primarily be accessed via the Kenai Spur Highway. The
Kenai Spur Highway is classified by the State of Alaska Department of Transportation
and Public Facilities as a Major Collector. A collector is defined as "A road classification
applicable to roads serving a mixture of local access and through traffic, for which the
volume , average speed, and trip length of vehicles using the road are usually lower than for
principal or minor arterials, but higher than for local roads." Furthermore, KMC 14 .20.320
defines a Collector as " ... a street located and designed for the primary purpose of carrying
traffic and of connecting major areas of the City". It would be unlikely that vehicles would
continue northbound along McKinley Street or Haller Street and bring additional traffic into
the Suburban Residential (RS) Zone to the north of the subject parcel. The appli cat ion also
notes the proposed retail marijuana store to be a low volume business . Thus, the proposed
retail marijuana store would meet the intent of the CG Zone whi le not adversely impacting the
intent of the adjacent RS Zone by generating heavy traffic.
2 . The applicant meets criteria for conditional use permits in KMC 14.20.150(d)(2) The value of
the adjoining property and neighborhood will not be significantly impaired;
Criteria Met: The proposed retail store would occupy a structure th at has a permitted
marijuana cultivation facility . The adjacent property to the east has commercial development,
including a restaurant, coffee shop, and retail and grocery stores . To the west is an auto
repair business. The proposed location fronts the Kenai Spur Highway. Across the Kenai
Spur Highway to the south are undeveloped parcels within the Suburban Res idential Zone .
North of the commercial development where the retail marijuana store would be located are
homes in the Suburban Residential Zone. The applicant states proposed operating hours to
be approximately 1 Oam-1 Opm.
Off-street parking requirements in KMC 14.20.250(8) for a "Manufacturing/Industrial ,
research and laboratories", which requires one (1) space for every 500 square feet of floor
area plus three (3) for patron parking. Retail sales of non-bu lky items requ ires one (1) space
for every 300 square feet of floor area. This would mean 14 parking spaces are required .
There is sufficient space on site in the parking lot and this will be verified with any site plans
submitted to the City associated with building modifications.
City staff conducted a site visit on July 26, 2019. The retail marijuana store would be
contained within a fully enclosed secure indoor facility as required by KMC 14.20.330( d). City
staff noticed the dumpster was not enclosed, which is required with site plan approval. The
enclosure of the dumpster is added as a condition of approval.
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If the dumpster is enclosed and local, state, and federal laws are followed as conditions of
the conditional use permit , City staff does not believe the va lue of the adjo ining property and
neighborhood would I be significantly impaired .
3. The applicant meets criteria for conditional use permits in KMC 14.20.150(d)(3) The
proposed use is in harmony with the Comprehensive Plan;
Criteria Met: The Land Use Plan within the 2016 Imagine Kenai 2030 Comprehensive Plan
identifies the subject parcels as Mixed Use (MU). The Land Use Plan describes the City's
vision of a generalized desirable pattern of land uses, but it is not a zon ing ordinance. The
plan defines MU as "Mixed Use is intended for a compatible mix of residential, reta il, service ,
office, public, institutional and recreational uses. Uses are co-located in an integrated way
that supports sustainable forms of transport such as public t ransport, walking and biking, and
increases neighborhood amenities . Compatibility issues are addressed through careful site
layout and building design." The proposed retail marijuana store aligns with the vision for land
use in the City of Kenai as it will add a retail store. The subject bui lding along with the
adjacent strip mall should be considered into City plans to improve pedestrian access in
order to help achieve the Mixed Use vision of development as outline in the Land Use Plan .
The proposed use is in line with goals and objectives identified in the Comprehe n sive Plan ,
including the vision for Goal 2 -Economic Development to provide a built environment for
long-term economic viability and growth that promotes affordable res idential development.
The application notes the retail marijuana store business will create jobs and tax revenue
while being consistent with other surrounding commercial uses.
4. The applicant meets criteria for conditional use permits in KMC 14.20.150(d)(4) Public
services and facilities are adequate to serve the proposed use;
Criteria Met: City water and sewer serve the subject property. The site also has connections
to natural gas, telephone, and three phase electric power. The parking lot is paved with
adequate spaces.
5. The applicant meets criter ia for conditional use permits in KMC 14.150(d)(5) The proposed
use will not be harmful to the public safety, health or welfare;
Criteria Met: ACG , LLC d/b/a Red Run Cannabis Company, LLC has appl ied for a license for
a retail marijuana store from the State of Alaska Marijuana Control Office (AMCO) and would
not operate until obtaining the license. The applicant currently holds a l icense for its ex isting
manufacturing facility on the premises from AMCO . ACG , LLC d/ba/ Red Run Cannabis
Company, LLC also has a business license w ith the State of Alaska and has record of paying
taxes to the Kenai Peninsula Borough.
KMC 14.20.330(e) requires the retail marijuana store not emit an odor that is detectable by
the public. The application notes that odors will be treated on site with the building already
designed to contain odors from the manufacturing facility.
The existing conditional use permit granted in 2017 through Resolution PZ2017-20 for the
ma rijuana manufacturing facility met the buffer distances for retail marijuana stores requ ired
in KMC 14.20.330(f). City staff again checked the buffer distances required to make sure the
following buffer distances required by KMC 14.20.330(f) were still met:
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(1) 1,000 feet of any primary and secondary schools (K-12) and 500 feet of any
vocational programs, post-secondary schools including but not limited to
trade, technical , or vocational schools, colleges and universities, recreation or
youth centers, correctional facilities, churches, and state licensed substance
abuse treatment facilities providing substance abuse treatment; and,
(2) Buffer distances shall be measured as the closest distance from the perimeter
of a stand-alone commercial marijuana establishment structure to the outer
boundaries of the school, recreation or youth center, or the main public
entrance of a church, correctional facility, or a substance abuse treatment
facility providing substance abuse treatment. If the commercial marijuana
establishment occupies only a portion of a structure, buffer distances are
measured as the closest distance from the perimeter of the closest inter ior
wall segregating the commercial marijuana establishment from other uses , or
available uses in the structure, or an exterior wall if closer, to the outer
boundaries of the school, recreation or youth center, or the main public
entrance of a church or correctional facility, a substance abuse treatment
facility providing substance abuse treatment.
Resolution PZ2017-20 discussed Kenai Christian Church being located to the east of the
parcel with a public entrance off of McKinley Street, but that Kenai Christian Church still met
the buffer requirements of City Code for commercial marijuana facilities because it was over
500 feet away. City staff used mapping software to review property owners within 500 and
1,000 of the parcel in August 2019. The location for the reta il marij uana store tha t would be
added the building with an existing marijuana manufacturing facility still meets buffers
distances required by City Code and would not have a harmful impact to public safety,
health, or welfare.
NOW , THEREFORE, BE IT RESOLVED, BY THE PLANNING AND ZONING COMM ISSIO N
OF THE CITY OF KENAI, ALASKA:
Section 1. That a conditional use permit for a retail marijuana store is granted to ACG, LLC .
Section 2. That the conditional use permit is subject to the following cond itions:
1. Further development of the property shall conform to all federal, State of Alaska , and
local regulations .
2. Prior to operation of the retail marijuana establishment , the applicant shall submit a
copy of an approved and fully executed license from the State of Alaska Alcohol and
Marijuana Control Office. The applicant shall comply with all regulations as stipulated
by the State of Alaska Marijuana Control Office.
3. Pursuant to Kenai Municipal Code Section 14.20.330(e), the Commercial Marijuana
Establishment shall not emit an odor that is detectable by the public from outside the
Commercial Marijuana Establishment.
4. Pursuant to Kenai Municipal Code Section, 14.20.150(f) the applicant shall submit an
Annual Report to the City of Kenai.
5. The applicant will enclose the dumpster on the premises with a sight-obscuring
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structure to meet requirements outlined in KMC 14 .25 .045 for the ir site p lan of the
premises .
6 . The applicant will also comply w ith the cond itions of PZ2017-20 granting their
commercial marijuana manufacturing facility conditional use permit fo r the facility in
the same building and modify that permit if the use changes.
PASSED BY THE PLANNING AND ZONING
ALASKA, this 14th day of AUGUST, 2019 .
ATTEST :
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RK
KENAI,