Offices of the City Manager and the City Attorney; Community Development Department
Reference: Marijuana Store Licenses
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Alicia Calderón, City Attorney
Michael Martinez, City Manager
Date Prepared: 01/17/2024
PURPOSE
To consider changes to an ordinance on second reading authorizing marijuana stores within the City of Brighton.
BACKGROUND
In 2012, Colorado voters passed Amendment 64 to the State’s Constitution, codified in Article XVIII, Section 16, legalizing the use of marijuana for anyone over the age of twenty-one, to be taxed and regulated similarly to alcohol. The medical use of marijuana for certain conditions was approved by the voters in November of 2000. However, local jurisdictions can opt out by passing an ordinance prohibiting the cultivation, product manufacturing, testing, and retail marijuana facilities. The City of Brighton (“City”) currently prohibits all of these.
A municipality may enact ordinances that govern the time, place, manner, and number of marijuana establishment operations and establish procedures for licensing such facilities. Enacting such an ordinance does not allow driving under the influence of marijuana and does not require an employer to accommodate the use, consumption, possession, transfer, display, transportation, sale, or growing of marijuana in the workplace.
On January 24, 2023, City Council discussed the history of marijuana in the City and options for regulations. On April 4, 2023, City Council reviewed the various types of marijuana businesses and provided direction to proceed with medical and retail marijuana businesses only. The ordinance being brought for consideration only allows medical and retail marijuana businesses.
Any applicant for a marijuana retail or medical marijuana retail business must obtain approval from the City and the State. The City may require a local license for a retail or medical marijuana business, and this is included in the proposed ordinance. The medical marijuana business may not be located within 1,000 feet of a school, a drug or alcohol treatment facility, a principal campus of a college or university, and a residential child care facility. The City, in its ordinance, may vary the distance restrictions or may eliminate one or more types of schools, campuses, or facilities from the distance restriction. C.R.S. § 44-10-311(1)(d). The City, in its ordinance, may make the medical marijuana distance restrictions applicable to retail marijuana or make its own location restrictions.
The ordinance presented requires a local license, with a limit of 4 licenses within the City. Two of the licenses are reserved for social equity applicants. The zoning where such marijuana stores may be placed on second reading is limited to C-3, C-2 and I-2, and it will not be allowed in a PD or PUD that has not included that as an allowed use. The distance requirements from schools is 1,000 feet, as well as from residential child care facilities, correctional facilities, and substance abuse treatment facilities. The hours of operation allowed will be from 9:00 am until 9:00 pm.
In response to meetings with industry leaders and various internal discussions, the following are proposed changes to the ordinance from the first reading:
1. Zoning.
a. At first reading, Council approved marijuana in C-3 and I-1 zone districts. The marijuana industry representatives recommended that retail be permitted only in commercial zone districts. Staff is suggesting allowing marijuana retail operations in I-1, C-2, and/or C-3 zone districts.
b. Added requirements that applicants submit assessor's parcel identification number for zoning verification letter.
c. Removed restriction prohibiting stores from locating within 1,500 feet of each other.
2. Application.
a. Changed to require 90-day annual application period. Initial period to open on March 1, 2024 (pending approval at second reading). In following years, application period will commence on January 1.
b. Updated required application materials.
3. Restrictions/requirements.
a. Labeling and pesticide use updated to conform with requirements of Colorado Marijuana Code.
b. Removed reporting requirement to city in the event of a change of business manager.
c. Added reporting requirement to city in the event of a change of a store manager.
d. Updated timeline for response to inquiries by city from 24 hours to 1 business day.
Should Council approve this ordinance on final reading, staff is preparing to begin receiving applications on March 1st, 2024.
While a higher sales tax was not approved by the voters for marijuana in 2021, retail marijuana sales will be assessed the City sales tax like all other retail stores in the City. Council members expressed interest in reserving the sales tax from marijuana for the Police Department. If this is the desire, a resolution reserving marijuana sales tax for the Police Department will be included at the next regular meeting along with the ordinance.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
N/A
FINANCIAL IMPACT
It is expected that there will be a financial impact as the City Clerk’s office will dedicate time to the licensing of these businesses, Community Development will inspect the premises for building code compliance, the Police Department will have staff assist with enforcement and reviews of licenses, and the City Attorney’s Office will prosecute violations and assist with any licensing hearings.
STAFF RECOMMENDATION
N/A
OPTIONS FOR COUNCIL CONSIDERATION
At the study session, no action is requested. At the next regular meeting, City Council may take any of the following actions.
1) Approve the Ordinance as written.
2) Deny passage of the Ordinance.
3) Modify the Ordinance
ATTACHMENTS
1. Ordinance with Redlines Showing Changes from First to Second Reading
2. Presentation