Attached are three draft ordinances that either propose regulations for or prohibit adult-use cannabis for the Board's consideration. Staff developed these alternatives at the Board's request after the August 14th COW meeting. Keep in mind that the Village cannot outlaw adult use cannabis and cannot adopt special licensing requirements.
Ordinance A: This ordinance amends the Code to prohibit all types of adult-use cannabis business establishments. This ordinance is straightforward.
Ordinance B: This ordinance sets forth proposed Code amendments, most significantly creating an article in the Code related to cannabis businesses. Any or all of the specific proposals can be changed if the Board wants different parameters. As drafted, only dispensaries would be permitted – all other adult use cannabis businesses would be prohibited. The ordinance prohibits on-premises consumption.
The proposed ordinance sets a limit of no more than three dispensaries. There could only be one in each of three designated areas: south of Central, between Central and Hintz but not in the B-5, and north of Hintz. Further, dispensaries could not be located within 1000 feet of schools and parks. There is a map attached after Ordinance B which shows these proposed location limits for dispensaries. They would be permitted uses in the B-2 and B-3 zoning districts.
There are several reasons Staff is suggesting that dispensaries, if permitted by the Board, be a permitted use, not a special use:
1. Liquor stores and drug stores are both permitted uses in the B-2 and B-3 districts. There are significantly more regulations related to the sale of cannabis than either liquor or prescription drugs. As so many factors are already regulated by the State for cannabis dispensaries, including security, hours of operation, manner of sale, advertising, packaging, etc., there are no obvious local issues for which a special use could be conditioned. Pursuant to State law, dispensaries can only be open between the hours of 6:00 a.m. and 10:00 p.m.
2. By the time any ordinance is adopted permitting the sale of cannabis in the Village, there will have been several public discussions on the subject, including a public hearing at the Plan Commission for certain necessary amendments to the Zoning Code, making a public hearing for a special use seem potentially redundant.
3. Assuming the Village Board limits the number of cannabis dispensaries to two or three as well as the other proposed location limitations, there will already be established limitations on where dispensaries can go, essentially already determining that dispensaries in those areas are acceptable.
Ordinance B also contains proposed amendments to Chapter 28 (Zoning Code) but those are limited to adding appropriate definitions and adding adult use cannabis dispensaries to the Permitted Use Table. That process will include a public hearing before the Plan Commission, with a scope limited to those two proposed amendments. The proposed Chapter 28 amendments would only be presented to the Plan Commission if the Village Board decided to move forward with permitting adult use business establishments.
Ordinance C: This ordinance, which is only necessary to be considered if Ordinance B is moved forward, proposes a 3% tax on the retail sale of adult use cannabis. This is the maximum permitted by the State law.
Conclusion
At this time, in order to ensure that the Village makes its own determination as to regulations related to cannabis businesses prior to January 1, the Committee-of-the-Whole needs to determine which ordinance(s), it wants to recommend the Village Board adopt.