Title
Resolution Directing the Ann Arbor Planning Commission to Review the Marijuana Facilities Provisions of the Uniform Development Code
Memorandum
Ann Arbor has long-permitted marijuana facilities and establishments to operate in certain zoning districts. Generally, Chapter 96 (Medical Marijuana Facilities and Marijuana Establishments) regulates the type and number of facilities, while Chapter 55 (Uniform Development Code/UDC) regulates the locations and details of their operations. Recently, the State of Michigan’s Cannabis Regulatory Agency has applied a more strict interpretation of “K-12 school” than the City had previously applied. Based on their proximity to a K-12 school, retail marijuana operations that have long existed in some locations, without incident or complaints, are now jeopardized.
Michigan law allows municipalities to reduce the 1,000-foot distance requirement between marijuana establishments and K-12 schools, which Big Rapids, Marquette, and Emmet Township have done by adopting ordinances to reduce the distance to 500 feet. Big Rapids has further carved out an educational building, reducing the distance requirement to 450 feet from that location.
Additionally, as retail marijuana operations have become more competitive, some retailers lay fallow due in part potentially, to undesirable locations. Retailers are unable to relocate because the required Special Exception Use (SEU) permit is linked to the parcel, which is often owned by a different entity. Although Chapter 96 permits up to 28 retailers, 21 are currently operating, 2 are temporarily closed, and 5 are closed. The City should review whether eliminating the SEU requirement would allow marijuana retailers to move to more desirable locations.
Staff
Prepared by: John Reiser, Senior Assistant City Attorney
Body
Whereas, Ann Arbor regulates Marijuana through Chapter 96 (Medical Marijuana Facilities and Marijuana Establishments) and Chapter 55 (Uniform Development Code/UDC);
Whereas, Chapter 96 requires that marijuana facilities comply with Chapter 55 which mandates that a Special Exception Use permit be issued for the parcel on which a marijuana provisioning center/retailer is located;
Whereas, Chapter 96 allows up to 28 provisioning centers/retailers but currently has approximately 21 in operation;
Whereas, The UDC requires that marijuana retailers and microbusinesses be located:
- At least 600 feet from any lot on which another marijuana retailer is located;
- At least 1,000 feet from a lot on which a pre-existing K-12 public or private school is located;
Whereas, There is currently a marijuana retailer in operation within 1,000 feet of a K-12 school; there have been other facilities operating within 1,000 feet of a K-12 school; and there is interest in prospective marijuana retailers locating within 1,000 feet of a K-12 school;
Whereas, The State of Michigan’s Cannabis Regulatory Agency investigates whether a proposed marijuana retailer will potentially be located within 1,000 feet of a K-12 school and will deny an application if so;
Whereas, Michigan law (MCL 333.27959) permits municipalities to adopt an ordinance that reduces the 1,000-foot distance requirements from pre-existing K-12 schools, which some municipalities (Big Rapids, Marquette, Emmet Twp) have done; and
Whereas, Section 5.27.3 of the UDC empowers the Planning Commission to make recommendations to the City Council regarding the text of the code;
RESOLVED, That the Ann Arbor City Council directs the Planning Commission to consider whether the current Uniform Development Code Sec 5.16.3(G) et seq) currently reflects the best practices for the regulation of marijuana facilities and establishments in the City of Ann Arbor and to review the following;
- Whether the 1,000-foot K-12 distance requirement should remain in place, be reduced citywide, or reduced in certain zoning districts or locations;
- Whether a Special Exception Use permit is an appropriate use designation for marijuana facilities;
- Whether other UDC provisions regarding marijuana growers and processors should be amended; and
- Whether there should continue to be a cap of 28 retailers in the City of Ann Arbor
RESOLVED, That the Ann Arbor Planning Commission shall hold a public hearing to solicit input from residents, marijuana businesses, and other interested parties as part of its review; and
RESOLVED, That the Ann Arbor Planning Commission shall report its findings and recommendations to the Ann Arbor City Council within six months of the matter being referred to them.
Sponsored by: Councilmember Cornell