The California Cannabis Countdown: The City of Coachella

The California Cannabis Countdown: The City of Coachella

Until recently, the Wild West of U.S. cannabis lacked robust statewide regulations which left California cannabis companies subject to unclear rules and risk of federal shutdowns. The Medical Cannabis Regulation and Safety Act (MCRSA) created these regulations, but ultimately left control in the hands of local cities and counties.

At last count, California has 58 counties and 482 incorporated cities across the state, each with the option to create its own rules or ban marijuana altogether. In this California Cannabis Countdown series, we plan to cover who is banning, who is waiting, and who is embracing the change to legalize marijuana permits, regulations, taxes and all. For each city and county, well discuss its location, history with cannabis, current law, and proposed law to give you a clearer picture of where to locate your cannabis business, how to keep it legal, and what you will and wont be allowed to do. Our last California Cannabis Countdown post was on Los Angeles County, and before that, theCity of Los Angeles, theCity of Desert Hot Springs,Sonoma County, theCity of Sacramento, theCity of Berkeley,Calaveras County,Monterey Countyand theCity of Emeryville.

Welcome to the California Cannabis Countdown.

Coachellais another California desert city that has recently discovered cannabis as a solution to its economic woes. Since passing regulations to permit cultivation, manufacturing, testing, distribution, and transportation within multi-acre facilities, the City has already authorized a proposed medical cannabis site that is expected to bring in millions in local taxes and fees, as well as create a new line of Coachella branded cannabis to put it on the proverbial marijuana map.

Location.Coachellais the easternmost city in the Coachella Valley area of Southern California. Located in the states desert region, the Citys community is largely rural and agricultural and low wages of farm workers may explain why it is one of the ten poorest cities in California.

History with Cannabis. On February 14, 2007, the Coachella City Council adopted a temporary moratorium on medical marijuana dispensaries, which it later extended on February 28, 2007, and again on January 23, 2008.

On March 11, 2009, the City Council passed Ordinance No. 1008, adding Chapter 17.84 to Title 17 of the City of Coachella Municipal Code to prohibit the establishment of medical marijuana dispensaries within the City.

On January 27, 2016, the City Council adopted Ordinance No. 1083 to permit medical marijuana cultivation as well as other cannabis-related activities while still prohibiting the establishment of marijuana dispensaries.

Current Cannabis Laws.Under Chapter 17.84 of the Coachella City Code, cannabis dispensaries and delivery of cannabis from dispensaries to patients are prohibited in all zoning districts within the City. Thus, no permits will currently be issued for the establishment or operation of either storefront dispensaries or mobile dispensaries in Coachella.

Under Chapter 17.85 of the Coachella City Code, medical cannabis cultivation, manufacturing, distribution, testing, and transportation facilities are allowed with proper permits. A conditional use permit is required for the location of the facility and a regulatory permit is required for operation of the facility.

Under the Citys regulations, a medical cannabis cultivation facility encompasses any facility where medical cannabis is planted, grown, harvested, dried, cured, graded, trimmed, manufactured into cannabis products, tested, distributed, or transported, as well as a facility that does all or any combination of these activities.

Currently, medical cannabis cultivation facilities are only permitted in wrecking yard zones (M-W zones) and must be located at least 1,000 feet away from residential zones. Medical cannabis cultivation facilities may not be established on any existing multi-tenant industrial park or business park sites, but instead, conditional use permits will be granted to develop new stand-alone facilities or multi-tenant facilities. Whats more, permits will only be granted to sites that are a minimum of five acres in size.

Only indoor cultivation is allowed and it must take place in permanent structures where the marijuana plants are not visible from the outside, which means that greenhouses and other non-permanent structures may not be used unless they are located inside a permanent structure. Outdoor cultivation is therefore completely prohibited.

Conditional use permits granted under Chapter 17.85 will not take effect until the City Council approves a development agreement for the site or until a local tax is passed on commercial cannabis cultivation in the City.

Proposed Cannabis Laws.Coachella currently has no proposed plans to change its prohibition on marijuana dispensaries, however they may be changes to the regulations for all other medical cannabis activities as the Staff Report for Ordinance No. 1083 revealed that the ordinance was passed quickly to meet the (now repealed) March 1st deadline under the (now renamed) MCRSA. Thus, the Report indicated there would be a need to update and revise the ordinance after its adoption, and detailedsome of the concerns expressed about the current version of the ordinance.

In the mean time, the City is moving forward with permitting and made headlines last month with its approval of a 111,500 square foot medical cannabis cultivation facility which is being called the first of its kind. The facility is being developed by Cultivation Technologies and will perform cultivation, manufacturing, testing, distribution, and transportationactivities, thus incorporating all phases of the marijuana supply chain in a single location. The proposed facility will include four 22,000 square foot indoor cultivation sites, two buildings, research labs and 9,000 square feet of space for manufacturing. Flowers and extracts created at the facility will be sold under the new brand name Coachella ...

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